Differences Between Your PAN and TAN

Documents such as PAN and TAN, without a say, are quite important. We need these documents for so many reasons, and it is quite essential for you to know how they work, what they are, and where to find them. Remembering the purpose of all these different documents can often become confusing. Hence, it is important to know the difference.

For example, an applicant cannot enter their PAN number in the field where the TAN is required because these numbers serve different functions. PAN is a unique number given to all individuals, most primarily to tax payers. TAN is a unique identification number given to those who are deducting or collecting taxes at source on behalf of the Income Tax Department.

In this post, we will discuss about the differences between your PAN and TAN numbers to help you understand their meaning and importance.

What is the Meaning of PAN?

PAN, which stands for Permanent Account Number is used to identify various taxpayers in the country. A Pan Card is a 10-digit unique identity alphanumeric number (including both alphabets and digits) given to Indians, primarily those who pay taxes.

The PAN or permanent account number system of identification is a computer-based system that assigns each Indian tax-paying entity a unique identification number. All tax-related information for a person is registered against a single PAN number, which serves as the primary key for information storage. Since this is shared throughout the country, no two people on tax-paying entities can have the same PAN number.

When a PAN is assigned to an entity, the Income Tax Department issues a PAN Card. PAN is a number, but PAN Card is a real card that includes your PAN as well as your name, date of birth, father's or spouse's name, and a photograph. Copies of this card can be submitted as identification or date of birth proof. Your PAN Card is valid for life because it is unaffected by address changes. Individuals can know their  PAN card status by acknowledgement number  once they have applied for a new pan card.

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What is the Meaning of TAN?

TAN stands for Tax Deduction and Collection Account Number. It is a ten-digit alphanumeric code. This figure must be met by those who will be responsible for the deduction or collecting tax at the source. Your TAN must be quoted in all TDS or TCS returns, payments, certifications, Annual Information Returns, and other documents.

Every person who has taxes deducted at the source or who collects taxes at the source must acquire a TAN. If a person fails to apply for TAN or fails to quote the TAN in the required paperwork, he or she will be fined Rs.10,000.

What are the Differences Between PAN and TAN?

• PAN (Permanent Account Number) is a unique identifying number provided to individuals and companies by the Income Revenue Department of India for the purpose of tracking financial transactions. TAN or Tax Deduction and Collection Account Number is a one-of-a-kind identifying number provided by the Income Tax Section of India to persons and businesses in charge of tax deduction or collection.
• PAN is necessary for numerous financial transactions and must be stated in many forms and returns; TAN is required for Tax Deductors/Collectors.
• PANs are issued to individuals and organizations at the time of registration, whereas TANs are issued to individuals and organizations responsible for tax deductibility or collection.
• PAN is used for a variety of financial transactions - such as bank account opening, filing tax returns, and investing. TAN is used to deduct or collect taxes, as well as to make tax deposits.
• PAN is associated with the individual or company, whereas TAN is associated with the tax deductor or collector.
• PAN is a ten-digit alphanumeric number, and TAN is a ten-digit alphanumeric number.
• PANs are valid for the lifespan of the individual or business, but TANs are only valid for one fiscal year.
• If you don't have either of these documents, do not worry - we will tell you how to get it. 

How to Get a PAN or TAN?

a) How to get a PAN Card?

•  A PAN card can be obtained by visiting the official websites of NSDL or UTIITSL.
• These websites provide two PAN application forms. Form 49A is used for Indian citizens, whereas Form 49AA is utilized for foreign nationals.
• He or she must complete the form by visiting the NSDL's official website and following the on-screen instructions.

A PAN card can also be obtained offline. One has to visit the NSDL office and submit the application form along with the essential documents. 

b) How to apply for TAN?
An individual can apply for TAN both online and offline. 

• Applicants who wish to apply online, must first log in to the official NSDL website and fill out the application form. 
• Upon application submission, the applicant will be given a 14-digit acknowledgment number. The acknowledgment number, as well as the associated papers and a fee, must be received by the NSDL office. 
• While applying for a TAN offline, an applicant must visit an NSDL center and submit the TAN application form, all applicable documentation, and a fee.

Since having two TAN cards is illegal, an individual cannot apply for another.

Here are Some Documents You Need to Have in Hand to Apply

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The following documents are required by the respective bodies for PAN application:

• Aadhaar, Passport, Voter ID, and Driver's License (POI/ POA) are required for each individual applicant.
• Hindu Unbroken Family: A HUF affidavit sworn by the head of the HUF, together with POI/POA information.
• Passport and other official documents: Passports Person of Indian Origin (PIO) / Overseas Citizenship of India (OCI) card issued by the Indian government Bank statement from the country of a residency In India, a copy of an NRE bank statement.
• Company: Company Firms/Limited Liability Partnerships (LLP) Registration Certificate: Registrar of Firms/Limited Liability Partnerships Partnership Deed Trust and Certificate of Registration: A copy of the Trust Deed or a copy of the Charity Commission's Certificate of Registration Number.
• Certificate of Registration Number issued by the Registrar of Co-operative Societies or the Charity Commissioner.

Conclusion

PAN and TAN are the most important documents issued by the Income Tax Sector of India to maintain track of taxpayers.

Given the significance and use of PAN and TAN, we may conclude that they serve as significant documents since they allow the government to keep track of money exchanges and tax evasion.

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