PAN, TAN in 1 Day to New Companies: CBDT & MCA Ease of Doing Business Initiative

CBDT and MCA Initiative; PAN and TAN issued within 1 day to new companies under incorporation, using MCA’s common application form SPICe (INC-32); Improved Ease of Doing Business in India; E-PAN sent via Email in addition to Physical PAN Card

PAN TAN in 1 Day to New Companies:CBDT Press Release dt. 11 Apr. 2017

In order to improve the Ease of Doing Business for newly incorporated corporates, CBDT has tied up with Ministry of Corporate Affairs (MCA) to issue Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) in 1 day.

Applicant companies 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.

Till 31 Mar. 2017, 19,704 newly incorporated Companies were allotted PAN in this manner. During Mar. 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.

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.

E-PAN sent via Email in addition to Physical PAN Card

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, i.e. at https://digilocker.gov.in

Relevant Notifications isssued by MCA/ CBDT

MCA Notification dt. 25 Jan. 2017 Companies Incorporation Amendment Rules 2017

MCA has issued notification dt. 25 Jan. 2017 on ‘Companies (Incorporation) Amendment Rules, 2017’ to amend Form No. INC-11 (Incorporation Certificate by CRC) and INC-32 (SPICe), for allotment of PAN and TAN during incorporation process, applicable w.e.f. 30 Jan. 2017

Income Tax/ CBDT (Systems) Notification 3/2017 dt. 21 Mar. 2017

Procedure of TAN application using ‘Simplified Proforma for Incorporating Company Electronically (SPICe)’ Form No. INC 32 of MCA with digital signatures during the course of incorporation of a new company.

Income Tax/ CBDT (Systems) Notification 2/2017 dt. 9 Mar. 2017

Procedure of PAN application using ‘Simplified Proforma for Incorporating Company Electronically (SPICe)’ Form No. INC 32 of MCA with digital signatures during the course of incorporation of a new company.

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