The Income Tax Department issues the Tax Deduction Account Number or the Tax Collection Account Number. In order to obtain TAN, each person is liable to deduct tax at source or to collect tax at source whereas PAN i.e, Permanent Account Number is an unique identification number assigned to all taxpayers in India. It is issued in order to prevent tax evasion by individuals and entities as it links with all financial transactions made by particular individual or entity. Both are distinctive 10-character alpha numeric number assigned by the Income Tax Department (ITD) of India.