You must have heard about PAN & TAN but got confused - What is it and are they really different?
Let's see that ahead.
WHAT IS A PERMANENT ACCOUNT NUMBER?
- PAN is a 10-digit unique identification alphanumeric number assigned, mostly to those who pay tax on their incomes
- It is governed by the Department of Income Tax
- Your PAN Card is valid for the lifetime
- No 2 person can have same PAN
- PAN card can be issued to an Individual, NRI (Non-Resident Indians), Companies, or anyone who is liable to pay tax in India
DETAILS ON PAN CARD
- Name
- Photograph
- PAN
- Date of birth
- Father’s Name
- Signature
- QR code (on new Cards issued after 1 January 2017)
USES OF PAN
- Pay Income Tax
- For registering a business in India
- Photo identification
- A lot of financial transactions require PAN, few examples are as follows :
- Sale or purchase of property
- Sale or purchase of a vehicle
- Visa & Foreign travel
- Purchase of Shares, Mutual funds and investments
- PAN Card can be used to avail utility connections such as electricity, telephone, LPG, and internet
WHAT IS TAN?
- TAN stands for Tax Deduction and Collection Account Number
- It is a unique 10 digit alpha-numeric number allotted by the Income Tax Department
- It is to be obtained by only those persons who are responsible for deducting (TDS) or collecting (TCS) the tax at source
- TAN has limited use for a specific purpose only
- It is not mandatory that every person having PAN needs to obtain TAN however, TAN cannot be issued without PAN
LET US SUMMARISE PAN & TAN
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