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What is the difference between PAN card and TAN card?

May 16, 2018, 11:12 AM IST

While PAN stands for Permanent Account Number, TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible who is an taxpayer or runs a business to enable proper deduction of tax, i.e. the deductor. 

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1. TAN card is a 10 digit alphanumeric number required to be obtained by all persons who are responsible for deducting or collecting tax.

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2. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his or her TAN. 

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3. PAN cannot be used for TAN. The tax deductor has to obtain TAN card, even if he holds a PAN card.

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4. However, in case of TDS on purchase of land and building (as per section 194- IA), a deductor is not required to obtain TAN and can use PAN for remitting the TDS.

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5. To facilitate deductors find their new TAN, the Income-Tax Department has now introduced a search facility in its website: www.incometaxindia.gov.in.