In order to improve the ease of doing business for newly-incorporated corporates, CBDT has tied up with the Ministry of Corporate Affairs (MCA) to issue Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) in 1 day.
Here are 4 things you should know about issuance of PAN and TAN within a day:
Common application form for PAN & TAN
Applicant companies submit a common application form SPICe (INC 32) on the MCA portal and once the data of incorporation is sent to CBDT by MCA, PAN and TAN are issued immediately without any further intervention of the applicant. The Certificate of Incorporation (COI) of newly-incorporated companies includes the PAN in addition to the Corporate Identity Number (CIN). TAN is also allotted simultaneously and communicated to the company.
Simple registration process
CBDT’s initiative in starting a business is expected to significantly improve the ranking of India in the Ease of Doing Business Study conducted by World Bank by reducing the number of processes of registration before various authorities under law, reducing the time taken for allotment of the registration number (CIN, PAN, TAN) and making the entire registration process for new companies much simpler.
E-PAN facility available
CBDT has also introduced the Electronic PAN Card (E-PAN) which is sent by email, in addition to the issue of the physical PAN Card, to all applicants including individuals where PAN is allotted. The applicant would be benefited by having a digitally-signed E-PAN card which they can submit as a proof of identity to other agency electronically directly or by storing in the Digital Locker.
Authenticity of one-day allotment
Till 31st March 2017, 19,704 newly-incorporated companies were allotted PAN in this manner. During March 2017, of the 10,894 newly-incorporated companies, PAN was allotted within 4 hrs in 95.63% cases and within 1 day in all cases. Similarly, TAN was allotted to all such companies within 4 hrs in 94.7% cases and within 1 day in 99.73% cases.