PAN and TAN Allotment Now Instant for Section 8 Companies

In a major administrative reform, the Ministry of Corporate Affairs (MCA), in coordination with the Income Tax Department, has announced the instant allotment of Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for newly incorporated Section 8 companies. This reform is part of the government’s broader initiative to simplify compliance procedures and enhance the ease of doing business for non-profit entities.

Effective immediately, PAN and TAN will be auto-generated and issued along with the Certificate of Incorporation (COI) through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) online form. This means applicants no longer need to file separate requests or undergo additional documentation post-registration, drastically reducing the time and cost involved in starting a non-profit company.

The automatic issuance is supported by backend integration between the MCA and the Income Tax Department, ensuring data verification and processing are completed in real-time. Once incorporation is approved, the PAN and TAN details are delivered electronically, with physical cards being dispatched by NSDL or UTIITSL soon after.

Government officials highlight that this step brings uniformity to the incorporation process and eliminates delays that often hinder newly formed Section 8 companies from opening bank accounts, applying for grants, or complying with TDS obligations. Experts believe this will significantly benefit smaller NGOs and charitable organizations that rely on timely statutory clearances to begin operations and seek funding.

The move is seen as a vital component of the digital India mission, offering seamless access to essential tax identities from day one. It reflects the government’s proactive approach in empowering social enterprises and ensuring smoother, faster onboarding into India’s formal non-profit ecosystem.