Difference between PAN and TAN?

To understand the difference between the two terms PAN and TAN clearly, one should be thorough with exactly what these both mean. PAN (Permanent Account Number) is a 10-digit number that is issued by NSDL to each citizen of India. To deal with the process of income tax return, having a PAN card is mandatory. In order to keep the tax system transparent and maintain a proper record, PAN card serves as an identification proof and is issued under the Section 139A of Income Tax Act. So its important to have pan card application form TAN (Tax Deduction and Collection Number) is also a 10-digit number consisting of both alphabets and numeric. Entities that can collect or deduct tax on the transactions made by them are allotted this number. The guidelines followed are the same as per the Income Tax Act, 1961. As per section 203A under the Income Tax Act, 1961; it is a compulsion to specify the TAN number for all those who are accountable to subtract TDS. This practice holds for all the communications that take place with the Income Tax Department. It takes approximately 7 to 8 days for the PAN card procedure to be completed. The same holds for the procedure for TAN card as well. What is the basic and major difference between TAN and PAN? #As mentioned above, both TAN and PAN are used to serve different purpose. PAN helps to deal with the income tax return process while TAN deals with matters related to TDS. PAN is a numeric 10-digit number whereas TAN is an alphanumeric 10-digit number. #The application form number to issue PAN card or make changes in the existing PAN card is 49A for the Indian residents while it is 49AA for the foreigners. On the other hand, application form number 49B needs to be filled for TAN. #PAN card is issued under the Section 139A, Income tax Act 1961. To issue TAN guidelines of Section 203A, Income Tax Act 1961 is followed. Thus, the procedure for both PAN and TAN are every different in every aspect. #PAN can be used in place of Aadhar card or driving license as an identification proof. It acts as a universal identification for all sorts of financial transaction that the individual facilitates into. . #To fill the income tax return, PAN card is a compulsion according to the Indian system. If the assessee deducts or collects tax from any other person, he or she should have TAN number for the same. One can Apply PAN Card online as well as TAN online. The procedure is not that difficult and there are guidelines available for the same on the internet. No information is disclosed to any third party. Make sure you have a PAN card as well as a TAN card, if you are engaged in the type of work discussed above. It will be easy for you to conduct the matters in a transparent manner. There is a proper PAN facilitation center located, thus one can approach the process offline as well.