Why you need Both PAN and TAN #taxmistakes #money

22 Apr 2026 · 1 min

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In this short video, the presenter clarifies the distinction between PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) to help viewers avoid common tax mistakes. PAN is described as the personal identifier required for income‑tax filing, banking, investments, and any situation where an individual earns money. TAN, on the other hand, is the identifier used by businesses when they deduct tax at source (TDS). The presenter offers a simple mnemonic: if you earn money you need a PAN; if you deduct tax you need a TAN. The video is part 4 of a PAN‑card series, references part 3 (checking PAN status via mobile), and teases the next episode about PAN card costs. The tone is conversational and instructional, aiming to provide practical, actionable insight.

Chapters

PAN and TAN are totally different things, but most importantly, people think that they are the same. This is part 4 of our PAN card series, and today we will understand PAN versus TAN to avoid some small tax mistakes. In part 3, we have already talked about how to check your PAN status using your mobile. This part, let's make it simple. PAN is your permanent account number used for income tax filing, banks, investments, and lot of stuff, whereas TAN is your tax deduction account number used when you deduct TDS, mostly in businesses. The easy rule to remember it is if you earn money, you need a PAN, and if you deduct tax, you need a CHAN. In the next part of the series, we will talk about how much your PAN card actually costs. Till then, follow us for more real insights.