Similar to PAN, TAN is also a 10-digit alpha numeric identity. However, only those who are responsible for deducting or collecting tax need to get a TAN.
In order to collect and manage tax collection from various incomes, the income tax department issues various unique identification numbers, such as Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) to entities such as individuals, HUF, companies and trusts/AOPs.
Similar to PAN, TAN is also a 10-digit alpha numeric identity. However, only those who are responsible for deducting or collecting tax need to get a TAN.
For instance, an employer who needs to deduct tax at source from employees income under section 192 of the Act, needs to have a TAN. Under section 203A of the Act, it is mandatory to quote TAN on all tax deducted at source (TDS) returns.
If it is not quoted, TDS or tax collected at source (TCS) returns will not be accepted by Tax Information Network-Facilitation Centres (TIN-FCs) and the challans for TDS or TCS payments will not be accepted by banks.
Failure to apply for TAN, or not quoting it in the specified documents, attracts a penalty of Rs10,000.
Also, according to the income tax rules, a property buyer has to deduct TDS at the rate of 1% of the property value if property value is above Rs 50 lakh. In such cases, the property buyer does not have to acquire a TAN to do so. Instead, she/he can mention her/his PAN while deducting and filing the TDS return.
Register your Business PAN Card
Documents required by any registered company for PAN Card Application in India are just a couple of things. This so because companies do not have a huge list of address or identity proofs to choose from in order to apply for PAN.
A Limited Liability Partnership is where all partners have limited liabilities and no one partner is responsible for misconduct or negligence of the other partner/partners. Following are the two documents required by LLPs for PAN application in India. Either of these documents can be submitted.
Following are the required documents for PAN Application by a firm formed or registered outside India
Documents required for PAN application by a Limited Liability Partnership registered outside India are as follows
An Association of Persons (Trust) is a unit that is formed by a group of individuals and is allowed to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be formed in several different ways based on the aim of the unit.
Following are the documents required by a trust which is trying to apply for PAN.
Documents required for PAN application by an Association of persons (Trusts) registered outside India
Documents Required for PAN Application by an Association of Persons (other than Trusts) Registered in India
Following are the documents required by the above listed entities for the purpose of PAN application by an Association of Persons (other than Trusts) or body of individuals or local authority or artificial juridical person registered or formed in India
Following are the Documents Required for PAN application by an Association of persons (except trusts) or body of individuals or local authority or any other entity registered outside India
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated tamper proof card, by the Income Tax Department of India.
The Permanent Account Number (PAN) is unique to an individual or entity and it is valid across India. Permanent Account Number once allotted to an individual or entity is unaffected by a change of name, address within or across states in India or other factors.
A typical Permanent Account Number is would look like AFZPK7190K.. The logic behind the array of numbers and alphabets is as follows:
First three characters i.e. "AFZ" in the above PAN are alphabetic series running from AAA to ZZZ.
Fourth character i.e. "P" in the above PAN represents the status of the PAN holder.
"P" stands for Individual.
"F" stands for Firm.
"C" stands for Company.
"H" stands for HUF.
"A" stands for AOP.
"T" stands for TRUST etc.
The purpose of having a pan card is strengthened from the fact that from 1 January 2005 it has been made mandatory to quote Permanent Account Number (PAN) on challans for any payments due to Income Tax Department (ITD), while filing returns of income and all correspondence with any income tax authority. Thus Purpose of having Pan Card has become mandatory.
All existing assessees or taxpayers or persons who are required to furnish a return of income, either on behalf of self or others, must obtain PAN.
Section 160 of IT Act, 1961 provides that a non-resident, minor, lunatic, idiot, and court of wards and such other persons may be represented through Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.
One should apply for new PAN Card when the applicant has never applied for a Permanent Account Number (PAN) or does not have a PAN allotted to him.
One should make an application when he/she wants to make some changes or corrections in their existing PAN details such as Change in applicant name, on account of marriage or due to spelling mistake Change in father's name Change in date of birth
One should apply for a duplicate PAN card when a Permanent Account Number (PAN) has already been allotted to the applicant but he/she requires a new duplicate PAN Card due to the following reason:
Obtaining or possessing more than one (Permanent Account Number) PAN is against the law. Penalty of Rs. 10000 levied under Income tax act.
The PAN card processing authorities to whom the application is submitted will ensure delivery of new PAN card at the address indicated by you in the application Form.
CIN - U74999KA2018PTC110598
About Us FAQ Terms and Conditions Privacy Policy Disclaimer Important linksNo 7 2nd floor, Brundavana Arcade 22nd Main Road Near PES college Banashankari 1st Stage Bangalore - 560050