Ease of doing business: Now get PAN, TAN in a day
Ministry of Finance has made it easier for applicants to get their Permanent Account Number (PAN) and Tax Deduction Account Number (TAN).
In a statement on Friday, the ministry said that a new system called Digital Signature Certificate (DSC) based application procedure for PAN (permanent account number) and TAN (tax deduction account number) is being introduced. It said, "Under the new process PAN and TAN will be allotted within one day after completion of valid on-line application."
It further said, "Similarly, a new Aadhaar e-Signature based application process for Individual PAN applicants has been made available on the portals of PAN service providers M/s NSDL eGov."
The ministry said, "Introduction of Aadhaar based e-Signature through M/s NSDL eGov in PAN application not only ensures paperless hassle free PAN application process but also seeding of Aadhaar in PAN which will curb the problem of duplicate PAN to a great extent."
What are PAN and TAN?
PAN: These are issued by income tax department with a 10 digit code type, to serve as a universal identification code for financial transactions.
Every tax payer or assessee should own a PAN. Forms for PAN application are 49A for Indians and 49AA for foreigners.
The law which PAN accounts for is Section 139 A of the IT Act of 1961, and a penalty of Rs. 10,000 can be imposed for failure to comply with rules.
TAN: They are also issued by income tax department with a 10 digit alphanumeric code type, to bring in smooth-running deduction and collection of tax at source.
Every individual or entity who has to deduct or collect tax at source should own it. Form to be used for application is form 49 B.
The law which TAN hold is Section 203A of Income Tax Act of 1961 and the same penalty like PAN is imposed on the defaulter.