PAN and TAN
TAN-Tax Deduction Account Number or Tax Collection Account Number is a 10 -digit alpha-numeric number issued by the Income-tax Department. TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
PAN-Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application. – GST Suvidha Centre can help you to obtain TAN and PAN.
Why Is PAN Important?
PAN Card is important for taxpayers as it is necessary for all financial transactions. There have various features of PAN :-
- It is important when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department.
- Individuals who do not have a PAN can use their Aadhaar number to file returns and for any other purpose where PAN was earlier mandatory.
- PAN and Aadhar link is compulsory, If don’t have PAN it’s need to apply for New PAN.
- PAN continues to be necessary for a large number of monetary transactions.
- PAN Card also serves as a proof of identity.The benefits of TAN
- Tax Deposits: When you’re depositing tax, you must quote TAN in documents. TAN is used for deductions such as salary, interest, or dividends. When depositing tax, you must undertake the steps:
- Use Challan type 281 for the deposit of tax deducted or collected at source.
It is important to quote the correct 10-digit TAN, along with the name and address of the deductor on each challan used for depositing tax.
- For indicating separate sections and the correct nature of payment code in relevant columns, you can use separate challans.
- Unique Identification: TAN is a unique identification number given to those who are deducting or collecting taxes at source, on behalf of the Income Tax Department, which makes every individual tax deductor or collector identifiable by his or her TAN. Bottom of Form
