When registering a company in India, two essential tax identification numbers come into play – Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
1. PAN (Permanent Account Number):
- PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department. It is essential for all entities, including companies, to have a PAN for tax purposes. Here’s why PAN is crucial:
- Tax Filings: PAN allows businesses to file Income Tax Returns and engage in any financial transactions with the government.
- Opening Bank Accounts: PAN is mandatory when opening corporate bank accounts.
- Financial Transactions: PAN is required for high-value transactions such as purchases of immovable property and foreign exchange transactions.
2. TAN (Tax Deduction and Collection Account Number):
- TAN is essential for companies that deduct or collect taxes at the source. It is a unique 10-digit number issued by the Income Tax Department and is required for the following:
- Tax Deduction: TAN allows companies to deduct tax at the source (TDS) on payments made to contractors, professionals, employees, etc.
- Filing TDS Returns: TAN is mandatory for filing quarterly TDS returns with the Income Tax Department.
- Issuing TDS Certificates: Companies need a TAN to issue TDS certificates to vendors, employees, and others from whom they have deducted taxes.
In short, PAN and TAN are indispensable for company registration, financial transactions, and ensuring compliance with tax laws. Sap Tax Hub LLP assists businesses in seamlessly obtaining these numbers during the private limited company registration in Delhi process.
Conclusion
Navigating the complexities of business registration in India can be daunting, but with the right guidance, the process can be smooth and efficient. Whether you’re interested in registering a subsidiary company, branch office, or a joint venture, Sap Tax Hub LLP stands ready to assist. As a premier CA firm in Delhi, we specialize in Private Limited Company registration in Delhi, ensuring compliance and facilitating business growth in the Indian market.