PAN and TAN both are ten-digit unique alphanumeric numbers issued by the Income Tax Department. Where PAN stands for permanent account number, and TAN stands for Tax Deduction Account Number or Tax Collection Account Number. Here we walk you through the process of PAN/TAN registration in Tambaram, Chennai, and its benefits, eligibility, who needs to apply, how to apply, and the card structure.
What is PAN?
PAN card assigns a unique identification number to every Indian tax-paying entity and is a means of identifying various taxpayers across the country. It contains all the information of the taxpayer such as taxes paid, refunds issued, outstanding arrears, income disclosed, transactions entered, etc. PAN Card is a strategy through which all tax-related information of an individual is recorded against a single PAN number which goes about as the essential key for storage of tax-related data. This is shared over the nation and henceforth no two individuals have a similar PAN.
At the point when PAN is allocated to an entity, PAN Card is also given by the Income Tax Department. While PAN is a number, PAN Card is an actual card that has your PAN, name, date of birth (DOB), and photo. Duplicates of this card can be submitted as evidence of identity or DOB. Your PAN Card is substantial for a lifetime as it is unaffected by any change in address.
Importance of PAN card
PAN card is issued by the Income-tax Department to prevent tax evasion by individuals and entities as all financial transactions made by a particular individual or entity are linked in it. It contains all the information and detailed records of all major transactions done by a taxpayer for tax purposes. Pan card is important for taxpayers, as well as no financial transaction, can be done without it. It is mandatory for a taxpayer to obtain a PAN card as it is necessary when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department.
Indian residents who are inhabitants of the nation just as NRI (Non-Resident Indians), OCI (Overseas Citizen of India) cardholders, PIO’s (Person of Indian Origin) just as outsiders who go under the domain of the Income Tax Act of 1961 are qualified to apply for a PAN card. Firms and organizations, governments, and minors also can apply for a PAN card.
Importance of PAN in the financial transaction
- PAN is essential while paying direct taxes
- PAN should be quoted by taxpayers when paying income tax
- PAN information is mandatory when registering a business
- PAN information is required for most the financial transactions
Who can apply for a PAN card?
According to tax consultants in Chennai for PAN registration you need to follow the following criteria:
- The applicant must be an Indian resident
- Applicant must be an individual taxpayer
- The applicant must not have a PAN card before
- The applicant must have an adhaar card
- The applicants mobile number must be linked to adhaar card
- The applicant’s adhaar card must be updated with all details.
Who needs to obtain a PAN card?
The following people need to apply for PAN Registration in Chennai.
- Each individual whose complete pay or the total pay of some other individual in regard to whom he is assessable during the year surpasses the maximum amount which isn’t chargeable to income tax.
- Individuals continuing any business or professional whose total sales, turnover or gross receipts surpass or are probably going to surpass Rs. 5 lakhs at whatever year.
- A charitable Trust who is needed to outfit return under section139 (4A)
- Any class or class of people who are needed to pay tax under the income tax act or some other act represent the time being in power. These people additionally incorporate importers, or exporters if they are needed to pay any tax or not.
- Individuals notified by the central government of the motivations behind gathering valuable information or apply to the reasons for this Act.
- Any individual who could possibly be obligated to pay a charge under the Act might be assigned PAN by the surveying official. He may give PAN with respect to the idea of exchanges as might be endorsed under the demonstration.
- Additionally, any individual may demand the official to dispense PAN.
- Each individual who means to go into explicit financial exchanges in which citing of PAN is required.
Documents required for PAN registration
- Passport size photographs – 2nos
- Residential address proof
- Identity proofs such as Adhaar card, or voter ID, driving license, and passport.
How to apply for PAN?
PAN registration in Chennai can be applied online but with a busy schedule, one cannot find time to do it. Also, PAN registration is mandatory for many basic transactions such as paying more than Rs. 25,000/-. To apply for a PAN registration one has to understand the process and requirements of PAN registration. So if you feel hectic applying for a PAN card then we can make it easy for you. We provide doorstep services for PAN registration in Chennai. All you have to do is contact our experts and talk to them about the service requires. After answering a few basic questions our team will help you with the PAN registration service in Chennai.
Our process of PAN registration in Chennai is simple and affordable. All you have to do is provide us with the required copy of the documents needed for the processes.
What is TAN?
According to section 203A of the Income-tax department Act, it is mandatory for a company, or individual that needs to deduct or collect taxes at source at the time of making payments are needed to obtain a tan number. The individual who has occurred a TAN number needs to quote the TAN number in all TDS, or TCS return forms, challans, and certificates. If you are a business owner in Chennai who deals with a tax deduction and collection at source then it is a must apply for TAN registration in Chennai.
Importance of TAN card
Applicants who are liable for deducting, and collecting tax at source need to apply for Tan registration. This enables the applicants to avoid tax penalties mentioned by the Income Tax department. According to the Income-tax Act 1961 if an individual fails to quote TAN numbers in documents then it can result in a penalty of Rs. 10,000. Therefore it is mandatory to get TAN registration in Chennai to quote TAN in the following documents.
- TDS (Tax Deduction at Source) statement i.e. returns
- TCS (Tax collected at source) statement i.e. returns
- Financial transaction statements
- Challans of payment for TDS/TCS
- TDS/TCS certificate
- Other documents as required for the registration
The validity of the TAN card is for a lifetime. TDS filings is done every year on the 15th of July, October, January, and May. The TAN cardholder who fails to file a TDS return within the due date will have to pay the prescribed penalty.
Importance of TAN in Financial transaction
TAN is usually verified through online transactions. When a TAN cardholder begins a transaction, TAN will be sent via SMS, e-mail, or some other method. The mode of delivery of TAN will be verified beforehand through any interaction mentioned above. When the TAN cardholder does a transaction he/she will receive a message with TAN which is required to be entered in the web form. Only after entering the matching code, the transaction will be processed.
TAN Registration is necessary to keep track of tax deducted, and collected at sources
Who can apply for a TAN card?
All those applicants or entities who need to deduct or collect tax at source on behalf of the income tax department needs to apply for a TAN card.
Benefits of TAN registration
- As per the Income-tax department the individual who files their TDS returns using TAN, the address and pin code will be generated automatically. This offers complete transparency in taxation cases.
- When the individual files TDS using TAN the status of the booking gets documented. This helps to check whether his/her return matches with the TDS statement that has been filed
- TAN application can be made separately for various branches of several enterprises for different TAN’s for that particular division, or branch.
- TAN can also be used for payment challans, and invoices of TDS/TCS certificates.
Documents required for TAN registration.
- Legal documents such as partnership deed, MOA, & AOA, etc.
- Passport size photo
- Address proof
- PAN of the entity
- TAN application form
How to apply for TAN?
TAN registration in Chennai can be done online. But for individuals who consider it as a hectic process can do it offline also.
- A Form 49B appropriately filled is applied at any nearest TIN Facilitation centers.
- Make sure the application is appropriately filed. An incomplete application will not be accepted by the authorities.
- You can find the address of your nearest TIN facilitation center on the NSDL-TIN website.
To make the process of TAN registration in Chennai is now made easier for the applicants by Phoenix tax- tax consultant in Chennai. We help you with the registration process at your doorstep and process it quickly. Our experts are always ready to help you with the TAN registration process. So don’t be stressed about online processing of finding your nearest TIN facilitation center just contact a Phoenix tax – Tax consultant today for TAN registration in Chennai.
According to the Income-tax department, PAN/TAN registration in Tambaram, Chennai is mandatory for individuals or entities whose transaction details are to be recorded to ensure transparency. For a hassle-free PAN/TAN registration in Tambaram, Chennai get in touch with one of the best tax consultants in the city today.