TAN vs PAN: TAN or Tax Deduction and Collection Account Number is a must for all those who deduct or deposit tax.
TAN vs PAN: Almost everyone knows about Permanent Account Number ie PAN. PAN is used by people for identity proof and financial transactions. But do you know about TAN ie. Generally people get confused about PAN and TAN. TAN or Tax Deduction and Collection Account Number is a 10-digit alpha-numeric number. This is necessary for all those who deduct or collect tax.
According to Section 203A of the Income Tax Act 1961, it is necessary to provide the TAN number given by the Income Tax Department (ITD) in all TDS statements. In order to give information about the new TAN number, the Income Tax Department has searched it on its website www.incometaxindia.gov.in The facility has been given to search new TAN by name and old TAN.
Difference between PAN and TAN?
- PAN stands for Permanent Account Number while TAN stands for Tax Deduction Account Number.
- Those who deduct or deposit tax must have a TAN number. It is necessary to give TAN number for all documents related to TDS and for all correspondence related to TDS from Income Tax Department.
- PAN cannot be used as TAN number but the deductor must have TAN even if he has PAN.
- However, according to section 194-IA of Income Tax, it is not necessary for the deductor to have a TAN on the purchase of land and buildings. Only PAN can be used for its TDS.
- Further TDS on rent (as per section 194-IB) and in case of TDS on payment of certain amount by persons of HUF (as per section 194-IB) deductor of tax TAN to deposit TDS Instead of using a pan.
How to apply for tan?
- You can apply for TAN in two ways, one is online while the other is offline mode.
- Offline: Applicants for TAN should fill up the duplicate Form 49B and submit it to any of the TAN Facilitation Centers (TIN-FC). TAN-FC address will be available on NSDL-TIN website https://www.tin-nsdl.com.
- Online: For this one can apply online on the website of NSDL-TIN. The TIN FC address is available at www.incometaxindia.gov.in and https://www.tin-nsdl.com.
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