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Difference between PAN, TIN and TAN

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Terms that are linked with Income Tax are generally unknown to ordinary people. But if you are someone who is employed then it is essential to know the system of taxation in the country. To know the taxation procedure in the country, you need to know the terms like PAN, TIN, and TAN. We'll try discussing the meanings of there tax terms and establish the difference between the three terms.

PAN(Permanent Account Number)

PAN is a ten-digit unique alphanumeric code that is provided to the individuals/entity as an identification proof. It is used by the income tax authorities to avoid tax evasion and keep track of all the financial transactions made by an entity. It is also required to file income tax returns by an assessee.

TAN(Tax Deduction and Collection Account Number)

TAN is a unique ten-digit alphanumeric code that is used for the collection or deduction. The companies are required to provide their TAN details while providing for TDS/TCS documents.

TIN(Taxpayer Identification Number)

TIN or Taxpayer Identification Number is an eleven digit numeric code that is mandatory for traders and companies that undergo transactions linked with GST(earlier VAT) All traders who are involved in trading related with GST and required to provide the details of the TIN while making any form of transactions.

Difference between PAN,TAN and TIN

PARAMETER

PAN

TAN

TIN

Issuing Agency

Income Tax Department

Income Tax Department

Commercial Tax Department of respective state

Code type

10 digit alphanumeric code

10 digit alphanumeric code

11 digit numeric code (first 2 digits are the state code)

Code content

The first 5 digits are alphabets representing various information, followed by 4 numbers and an alphabet

A TAN is composed of 4 alphabets, followed by 5 numbers, with an alphabet as the last digit

A TIN is composed of 11 numbers

Purpose

PAN acts as a universal identification code for financial transactions

Streamline deduction and collection of tax at source

Track VAT related activities in the country

Who should own it

Every taxpayer/assessee

Every individual/entity who has to deduct or collect tax at source

Any dealer or trader who is liable to pay VAT

Laws which account for it

Section 139 A of the IT Act of 1961

Section 203A of Income Tax Act of 1961

Different states have different Acts under which TIN is applicable

Fines/Penalties

A penalty of Rs 10,000 can be imposed for failure to comply with the rules

A penalty of Rs 10,000 can be imposed for failure to comply with the rules

Penalties vary from state to state

Form to be used for application

Form 49A (Indians), Form 49AA (Foreigners)

Form 49B

Forms vary from state to state

Documents required to apply

Valid ID proof, address proof, photographs (in case of individuals) and proof of age (date of birth)

None. In case of online application the signed acknowledgement needs to be submitted

Proof of registration, PAN, ID proof of owner, etc. (documents required are likely to vary depending on the state in which an entity applies)

How many can one own?

One

One

One

Cost of applying

Rs.107 if the communication address is located inside India and Rs.989 if the address is outside India

Rs.55 plus service tax

Varies from state to state

 

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