PAN / TAN Registration
PAN refers to the Permanent Account Number. Its primary function is to prevent tax evasion by keeping a complete track of monetary transactions. TAN registration refers to the Tax deduction Account Number. It enables the assessee who has made payment to claim the tax deducted in their Income tax return.
Need
TAN is required by all individuals because without it Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centres. Banks to do not accept the challans for TDS/TCS payments if TAN is not quoted.
It needs to be mentioned that failing to apply for TAN or not quoting the 10-digit alphanumeric number in specified documents like TDS/TCS returns, e-TDS/e-TCS returns, TDS/TCS certificates, and TDS/TCS payment challans can attract a penalty of Rs.10,000.
All those who are required to deduct or collect tax at source on behalf of the Income Tax department need to apply and obtain the 10-digit alphanumeric TAN.
A Permanent Account Number or PAN is a means of identifying various taxpayers in the country. PAN is a 10-digit unique identification alphanumeric number (containing both alphabets and numbers) assigned to Indians, mostly to those who pay tax.
Documents required for applying for a PAN card
- Aadhar card
- Voter ID card
- Passport