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Pan and tan

Jayakrishna (Student) (132 Points)

21 December 2015

What is the difference between PAN and TAN??

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Stranger (.) (5531 Points)
Replied 22 December 2015

PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department in the form of a laminated plastic card (commonly known as PAN card). It enables the department to identify/ link all transactions of the PAN holder with the department which include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence etc, and so on. It facilitates easy retrieval of information of PAN holder and matching of various investments, borrowings and other business activities of PAN holder. Section 272B provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN even when he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document or intimating incorrect PAN to the person deducing tax or person collecting tax or for having more than one PAN. Penalty of Rs.10,000 under section 272B can be levied.

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-. Moreover, neither TDS/TCS returns nor payment of tax through challans would be received by banks unless TAN is quoted.

Hope ur doubt is cleared now...