PAN, TAN cards to new companies in 1 day, ease of doing business rank may improve
In order to improve the Ease of Doing Business for newly incorporated corporates, Central Board of Direct Taxes has tied up with Ministry of Corporate Affairs (MCA) to issue PAN and TAN in a day.business Updated: May 08, 2017 07:13 IST
Companies can now get their permanent account number (PAN) and tax deduction account number (TAN) within a day, which is a major step to improve India’s ranking in the ease of doing business.
In order to improve the Ease of Doing Business for newly incorporated corporates, Central Board of Direct Taxes has tied up with Ministry of Corporate Affairs (MCA) to issue PAN and TAN in a day.
Applicants must submit a common application form SPICe (INC 32) on MCA portal and once the data of incorporation is sent to CBDT by MCA.
“The 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,” a finance ministry release said.
Until March 2017, the government allotted PAN and TAN to 19,704 new entities.
In March, PAN was allotted within 4 hours to 95.63% of the 10,894 new incorporated companies. TAN was allotted within one day to 99.73% cases.
“CBDT’s initiative in starting of 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,” the ministry said.
The CBDT has also introduced the electronic PAN Card (E-PAN), which is sent by email, in addition to issue of the physical PAN card, to all applicants including individuals where PAN is allotted.
Applicant would be benefited by having a digitally signed E-PAN card, which they can submit as proof of identity to other agency electronically directly or by storing in the Digital Locker (https://digilocker.gov.in).
First Published: Apr 11, 2017 14:37 IST