PAN vs TAN

PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are both issued by the Income Tax Department under the Income Tax Act, 1961, but they serve fundamentally different purposes. PAN is a unique 10-character identification (e.g., AABCS1234E) assigned to every taxpayer — individuals, firms, companies, LLPs — and serves as a universal tax identity for all tax-related transactions including filing returns, opening bank accounts, buying property, and investing. PAN is permanent and does not change. TAN is a 10-character alphanumeric code (e.g., DELS12345) mandatory only for people responsible for deducting or collecting tax at source (TDS/TCS). Every entity paying salary, rent, professional fees, or contractor payments above the threshold must obtain TAN and quote it in all TDS returns and certificates. One person can have both PAN and TAN — PAN is universal tax identity, TAN is specifically for TDS/TCS operations.