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) |
NULL. 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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