PAN is also known as permanent account number. The main function of this number is to prevent tax evasion by keeping a proper track of the transactions. TAN is known as the tax deduction account number. It helps the individual or the business that has made the payment to claim for the deducted tax. The account number consists of a 10 figure alphanumeric characters. The income tax department will issue both the numbers once the prescribed application is submitted to them.
PAN number is extremely important while filing income tax return. Everyone should hold a PAN number. However, TAN is needed for assesses who are responsible for paying tax for the amounts paid or are payable based on the income tax act. This need to be quoted in TDS certificates, TDS remittance challans and periodical returns with the income tax.
The best part is that companies can obtain their PAN and Tan certificates within a day. The companies need to submit an application with a digital signature certificate. Apart from that, an individual can apply for a PAN number with the help of Aadhar based e-signature facility. This will reduce the effective time allotment as well. It is a good idea to apply for the online application as you will get the allotment of PAN and TAN registration within a day.
Applicants will have to fill Form 49A for PAN and 49B for TAN online.
