What is PAN, TAN and TIN?

By | February 27, 2017

It is very confusing to remember the meaning of all the Income Tax related terms which sounds similar but having different meanings and purposes. There are many complicated terms which strike with us while file tax. PAN, TAN, and TIN are the most common terms which are used in income tax department.

Here we describe the difference between PAN, TAN, and TIN:

What is PAN?

Permanent account number or PAN is a 10-digit unique alphanumeric ID number which is issued by Indian Income Tax Department in 1972. These 10 digit numbers are allotted to a person who is eligible for taxpaying. PAN card is also used as an identity proof and necessary for every financial transaction more than Rs. 50,000/-. It is a mandatory document and only with the help of this document a individual can communication with Income Tax Department.

PAN card is now steadily become a necessary document for opening a new bank account, buy and sale of property, purchase of foreign currency, landline telephone connection and bank deposits above more than fifty thousand rupees. An individual can apply for PAN card by submitting the application of PAN card to the authorized income tax agency of the district along with all necessary documents and two passport size color photographs. This whole process takes 10 to 15 days.

Also Read: Know Your Pan Jurisdiction

What is TAN?

TAN stands for Tax Deduction Account Number, just like PAN card it is a ten digit unique alphanumeric number which is issued by the Income Tax Department of India. It is necessary to write TAN number on all the TDS returns to TDS challans. According to the section 203A of Income Tax Act of 1961, it is compulsory for a person who is willing to pay income tax to mention TAN number in all communication with income tax department regarding TAN.

If a taxpayer does not mention his TAN number than he has to pay a penalty of the amount of Rs.10,000. It is very simple to apply for TAN number online and offline, only he has to fill application form along with a demand draft of Rs 62.

Also Read: How to Change Signature in PAN Card

What is TIN?

Taxpayer Identification Number or TIN is an 11 digit unique ID number which is issued by Commercial Tax Department of respective state to track the activities related to VAT in the country. TIN numbers become VAT number when it is used for sales out of the states. The first two digits of a TIN card is stated pin code number. Any trader or dealer who pays VAT can apply for TIN card number. The government of India designed single repository for all the tax related information so that taxpayers can get the information related to tax from anywhere within the nation.

TIN numbers allow state government to know which dealer is registered under and VAT and also allow a dealer to do sale and purchase between two or more states. It is very easy to apply for a TIN number online, only you have to visit official website https://www.tin-nsdl.com/. You can also submit TIN application offline, for this first you have to download the form and then submit it at your nearest center.

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