PAN Card & TAN Services
PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are essential tax-related identification numbers issued by the Income Tax Department of India. Both are crucial for tax compliance, but they serve different purposes.
- PAN Card Services
A PAN Card is a unique 10-character alphanumeric identifier issued to individuals, companies, and entities engaged in financial transactions. It is mandatory for a wide range of financial activities, including filing income tax returns, opening a bank account, and transactions above a certain threshold.
Key Uses of PAN Card:
Income Tax Filing: Individuals and businesses must use PAN to file income tax returns.
Financial Transactions: PAN is required for opening bank accounts, buying and selling property, making deposits exceeding ₹50,000, investing in securities, etc.
Proof of Identity: PAN serves as valid identity proof in India.
Documents Required:
Individuals: Proof of Identity (Aadhaar, Voter ID, Passport), Proof of Address, and Passport-sized photographs.
Businesses: Proof of Incorporation, Registration Certificate, Partnership Deed, etc.
- TAN Services
TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric code issued to individuals and entities responsible for deducting or collecting tax at the source (TDS/TCS). TAN is mandatory for any person required to deduct tax on payments such as salary, interest, rent, and more.
Key Uses of TAN:
TDS/TCS Filings: Businesses or individuals who deduct tax at the source must quote TAN when filing TDS returns.
TDS Payments: TAN is required to deposit tax deducted at the source with the government.
Issue TDS Certificates: TAN is required for issuing certificates to payees confirming the tax deducted on their income.
Documents Required:
Proof of Identity: For the deductor (business or individual).
Address Proof: Business or individual address proof.