In its attempt to enhance ease of doing business, the Income-Tax department has joined hands with the Ministry of Corporate Affairs (MCA) to issue Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for newly incorporated companies in a single day. As many as 19,704 companies were allotted PAN in this manner till 31 March 2017.
“Applicant companies submit a common application form SPICe (INC 32) on the MCA portal and once the data of incorporation is sent to the Central Board of Direct Taxes by MCA, the PAN and TAN are issued immediately without any further intervention from the applicant,” the Finance Ministry said on Tuesday.
During March 2017, of the 10,894 newly incorporated companies, PAN was allotted within 4 hours in 95.63 per cent cases and within a single day in all cases. Similarly, TAN was allotted to all such companies within one day in 99.73 per cent cases.
The CBDT has also introduced the Electronic PAN Card (E-PAN) which is sent by e-mail, in addition to issue of the physical PAN Card, to all applicants including individuals where PAN is allotted.
The move is expected to significantly improve India’s ranking in the Ease of Doing Business Study of the World Bank by reducing the number of processes of registration for companies as well as making it simpler to set up businesses, the statement said.