You can do it in either application. You would have to create custom pages slightly over sized and create die cuts for the tabs and where they land. Check with your print vendor. They may have a template you can use.
Thank you for your help. I've read about reating die cuts now. The only thing I'm unclear with is how to create a good looking die cut line in the first place. Should I just use the pencil or is thee a much better tool.