All About the Differences Between TAN, PAN and TIN
Terms used in taxation can sound similar and hence confuse some individuals. However, the meaning of each terminology is different and serves distinct purposes from each other. Some of the commonly used terms are PAN, TIN and TAN. So, if you do not know what these terms actually denote, then this piece about the differences between TAN, PAN and TIN will help you to remove your confusion and provide a clear idea.
A Brief Overview of PAN, TAN and TIN
Before moving ahead with the differences between TIN, TAN and PAN, it is essential to understand the meaning of these terms. So, take a look at the same listed below:
PAN
PAN or Permanent Account Number is a 10-digit alphanumeric code given to all the assessees or taxpayers in India. The Income Tax Department issues this PAN card. It is a compulsory requirement for every tax-paying entity engaging in an economic activity above a specific financial limit in this country.
TAN
TAN or Tax Deduction and Collection Account Number is a 10-digit alphanumeric code. The primary purpose of this TAN is associated with tax collection and deduction. This implies that every entity that collects or deducts tax must require TAN, and they need to include TAN in TDS and TCS documents.
TIN
A Taxpayer Identification Number or TIN is an 11-digit numeric code. This is a compulsory requirement for every trader and dealer who does transactions that attract VAT. Every business which operates inter-state trade is required to have TAN.
Differences Between PAN, TAN and TIN
Once you understand the basic details about PAN, TAN and TIN, refer to the following table to know the difference between these three terms:
TAN Vs TIN Vs PAN: A Comparison
| Parameters | TAN | TIN | PAN |
| Issuing department | Income Tax Department | Commercial Tax Department of a state | Income Tax Department |
| Type of code | 10-digit alphanumeric code | 11-digit numeric code. The first 2 digit denotes the state code | 10-digit alphanumeric code |
| Content of the code | The code contains 4 alphabets, followed by 5 numbers. One alphabet is the last digit | It contains 11 numbers | The first 5 are alphabets, referring to some information, followed by an alphabet and 4 numbers. |
| Purpose | Used for collection and deduction of tax at source. | Used for keeping track of activities related to Value Added Tax in the country. | Serves as a universal identification code for every monetary transaction. |
| Who requires it? | Every business entity or individual who is responsible for collecting and deducting tax. | Any trader or dealer who is eligible to pay Value Added Tax. | All assesses and taxpayers of the country. |
| Applicable laws | Section 203A of the Income Tax Act, 1961 | Every state has different Acts which specify TIN. | Section 139A of the Income Tax Act, 1961. |
| Penalties | You need to pay a penalty of ₹ 10,000 if you fail to comply with the guidelines. | Penalties differ from one state to another. | You need to pay a penalty of ₹ 10,000 if you fail to abide by the rules. |
| Application forms that are used | Form 49B | Application forms differ from one state to another. | Indians must fill in Form 49A, and foreigners must fill in 49AA. |
| Documents to submit during the application | You do not need to submit documents. When applying online, you need to submit the signed acknowledgement. | Registration proof, your ID proof, PAN, etc. Note that the required documents may differ with each state in which you apply. | ID proof, photographs in case of individuals, address and age proof. |
| Application cost | You may need to pay ₹ 55 along with the service tax | Charges differ from one state to another. | You need to pay ₹ 107 if the address is in India and ₹ 989 if the address is located outside India. |
| Number of cards one can own | 1 | 1 | 1 |
It is essential to know the differences between TAN, PAN and TIN so that whether during their application or usage, you do not experience any inconvenience.
Frequently asked questions
Is TIN also known as VAT Number?
Yes. TIN is also known as VAT Number when it is used for intra-state transactions.
Can you apply for PAN online?
Yes. You can apply for PAN by logging into the official portal of NSDL. Alternatively, you can apply the same by visiting the website of UTIITSL.