What is the difference between PAN card and TAN card?

Jan 29, 2020, 05:34 PM 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. 


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


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. 


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


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.


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.