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Answer to - what is difference between pan no and tan no?

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)

24 December 2012

PAN - Every receiver of income with taxable income has to have a PAN. Permanent Account No. which was started in 1971 but in recent years has to be produced practically for every financial transaction.

TAN - TAN on the other had is Tax (Deductor's) Account No. Without this number, NO ONE is entitled to deduct tax at source from another person or party. TAN is necessarily to be mentioned in the challans used for paying tax deducted from different persons into Government Accounts. Such a statement will contain details of PANs of different persons to whom payments were made/accounts credited and from whom taxes were deducted in accordance with the prevalent law

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2 Replies

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 24 December 2012

PAN - Permanent Account Number.
TAN - Tax Deduction Account Number.

Both the numbers are issued by the Income Tax Department
against the application in the prescribed form by an
assessee or a person.
PAN must be quoted while preparing & filing the Income Tax
Returns and every assessee should have obtained a PAN &
should not have more than one.
TAN is required for those who are responsible to with hold
tax from the amounts paid or payable as per the Income Tax
Act. This No. needs to be quoted in TDS remittance challans,
TDS Certificates and periodical returns to be filed with the
Income Tax department.

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 24 December 2012

PAN -Permanent Account Number
TAN -Tax deduction Account Number

Both are issued by the Income Tax Department.
--------------PAN------------------
PAN for filling & deposit Income Tax 
Advance Tax Date : 15 Sept, 15 Dec & 15 March 
-------------TAN-----------------
is used for the purpose of Deduction of Tax at various
source of income which is given by the deductee such as
Rent, Commission & Brokerage, Interest, Professional fee,
Contract or sub contract and also
tax collected at source (sale of scrap & wastage)

TDS & TCS Returns are separately filed with the department
Q1- 15 July
Q2- 15 Oct.
Q3- 15 Jan.
Q4- 15 June