DIFFERENCES
BETWEEN PAN AND TAN
PAN
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TAN
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PAN stands for
Permanent Account Number
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TAN stands for
Tax Deduction and Collection Account Number
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PAN is a
unique ten digit alpha numeric identification issued to Association of
Persons, Body of Individuals, Company, Firm, Government, Hindu Undivided
Family, Artificial Judicial Person, Local Authority, Trust and Persons or
Individuals.
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TAN is a ten
digit alphanumeric number to the persons or firms or companies who are
supposed to deduct tax at source or TDS.
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PAN has First
5 Alphabets and 4 numbers and last 1 alphabet and totally 10.
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TAN has First
4 Alphabets and 5 numbers and last 1 alphabet and totally 10.
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First three
characters represents alphabetic series running from AAA to ZZZ and 4th
Character represents constitution and 5th character represents PAN
holder’s last name/Surname.
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First three
characters represents the city or State where TAN was issued. For example
first three letter in TAN is BLR signifies that city in which TAN issued is
The 4th
letter represents TAN holder’s last name/Surname
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Next four
characters are numerals running from 0001 to 9999
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Next five
characters are system generated numeric Numbers.
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Last character
is a alphabet which is called check digit
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Last character
is a alphabet which is called check digit
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PAN is
necessary to apply for VAT registration.
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TAN is
necessary to apply for TDIN registration
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PAN is to be
quoted at the time of purchase of any immovable property, motor vehicles, at
the time of making deposits in banks exceeding Rs. 50000.00, and at the time
of opening Bank account, Installation of Telephone connection, payment of
Rs.25000.00 and above towards bill to hotels and restaurants, at the time of
Travel to any foreign countries etc.
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TAN is to be
quoted in the TDS returns at the time of filing of TDS returns and TCS
returns.
If TAN is
obtained TDS returns must be filed quarterly by the TAN holders.
Failure to
apply for TAN will lead to levy of penalty of Rs.10000.00.
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PAN quoting is
compulsory at the time of filing of Income Tax Returns
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TAN quoting is
compulsory at the time of filing of any e-TDS or e-TCS returns and any TDS or
TCS payments and TDS Certificates and TCS Certificates.
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