Taxpayers will be well acquainted with the PAN (Permanent Account Number) card. PAN card is mandatory for filing tax. But have you ever heard the name of TAN card? TAN card is also a tax related document. Many people do not know the difference between TAN and PAN. People also have less information about where TAN card is used.
Today we will tell what is this card. How is it different from PAN card, where is it needed and does every tax payer have to keep TAN card like PAN card. Let us know about it in detail.
What is TAN Card
Full form of TAN is Tax Deduction and Collection Account Number. It is also issued by the Income Tax Department itself. This is an alphanumeric code of digits. Now the question is, for whom it is necessary, then let us tell you that it is not mandatory for the people who pay the tax. TAN is mandatory for those who collect tax.
Suppose you do some work for someone, in return for which you have to be paid. The person you are working with deducts TDS from it while giving money in lieu of work. It is the responsibility of the employer who is here to collect the tax. That’s why it is mandatory to make his TAN. If you are a company owner and some people work in your company to whom you pay salary, then you have to take TAN number.
How is it different from PAN,
TAN card is for those people who deduct tax and PAN number is for those people who pay tax. TAN number is mandatory in all the documents related to TDS. Permanent Account Number or PAN is a 10 digit code which is very important for employed people. PAN is also used by the government to monitor large transactions done by you.
How to Apply for TAN
You can apply for TAN through Form 49B. You can apply for TAN both online and offline. For this you have to pay 62 rupees. You have to visit the official website of NSDL to generate online TAN card.