PAN card is mandatory for filing taxes and all taxpayers are well familiarized with the PAN (Permanent Account Number) card. But do you know about the TAN cards? TAN is also a tax-related document. However, people have less information about TAN cards. They do not know what the difference between TAN and PAN cards is.
So, here we are to tell you what a TAN card is and how it is different from a PAN card. Here you will also find where a TAN card is needed and do every taxpayer have to keep a TAN card. Let’s learn about them in detail.
What is TAN Card?
TAN stands for Tax Deduction and Collection Account Number and it is also issued by the Income Tax Department itself with an alphanumeric code of digits. Now, if you are wondering, for whom it is necessary and then it is mandatory for the people who pay the tax.
For example, you do certain work for a client and are expected to be paid. While offering you money in exchange for your work, the person you are working with deducts TDS from it. The employer is in charge of obtaining the tax. That is why making his TAN is required. If you are a business owner and have employees for whom you pay a salary, you must have a TAN number.
How is TAN is different from PAN?
PAN numbers are used by those who pay taxes, while TAN cards are used by tax-deducting individuals. All documents related to TDS must include the TAN number. PAN, or Permanent Account Number, is a 10-digit code that is crucial for persons who are employed. The government also keeps track of significant transactions you make using PAN.
How to Apply for TAN?
By filling the Form 49B, you can apply for TAN. Both online and offline TAN applications are accepted. You need to pay 62Rs for this. To generate the online TAN card, you have to go to the NSDL's official website.