The Central Board of Direct Taxation (CBDT) on 11 April 2017 tied up with the Union Ministry of Corporate Affairs (MCA) to issue Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) in 1 day in order to improve ease of doing business.
Applicant companies will be required to submit a common application form SPICe (INC 32) on MCA portal. Once the data of incorporation is sent to CBDT by MCA, the PAN and TAN will then be issued immediately without any further intervention of the applicant.
The Certificate of Incorporation (COI) of newly incorporated companies will include the PAN in addition to the Corporate Identity Number (CIN). TAN will also be allotted simultaneously and communicated to the Company.
In March 2017, PAN was allotted within 4 hrs in 95.63 per cent cases and within 1 day in all cases to the newly incorporated companies.
This initiative of CBDT is expected to significantly improve the ranking of India in the Ease of Doing Business Study conducted by World Bank. It will reduce the number of processes of registration before various authorities which will simultaneously reduce the time taken for allotment of the registration number (CIN, PAN, TAN).
Earlier, CBDT 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 individual.
Applicants will 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.