Difference Between PAN, TAN and TIN

PAN stands for Permanent Account Number. It is a 10-digit unique alphanumeric number. It is issued by the Income Tax Department. It is mandatory to quote PAN for every transaction and communication with the Income Tax Department. Additionally, there are certain specified financial transactions, where it is mandatory to quote PAN. These include transactions like opening a bank account, opening demat account, dealing in securities, even for making applications for issue of credit/ debit card, purchase of movable and immovable assets. 

It is mandatory for every person who is eligible to obtain Aadhaar, to quote his Aadhaar number while applying for PAN or for furnishing Income Tax Return.

What is TAN?

TAN stands for Tax Deduction and Collection Account Number. It is also a unique 10 digit alphanumeric number.It is issued by the Income Tax Department. TAN must be obtained by all persons responsible for deducting or collecting tax at source. It is mandatory to quote TAN in TDS/TCS returns, challans, certificates and any other documents as may be prescribed in communication with the Income Tax Department.

What is TIN?

Prior to GST, TIN (Tax Identification Number) was issued by State Tax Authorities for registering under VAT/CST. It was a unique 11 digit alphanumeric number.It was mandatory for business enterprises, specialising in manufacturing, exporting, trading and dealing with purchase as well as sale of goods and services to obtain TIN.

TIN helps business entities for tracking their transactions. It merges all the tax related information of business with respect to interstate and intrastate transactions.

What is GSTIN?

GSTIN is a unique 15 digit Goods and Service Tax Identification Number. It is assigned to each taxpayer which is statewise and PAN based. Under GST all registered taxpayers will be consolidated onto a single platform for compliance and administration purposes and will be registered under a single authority. GSTIN has replaced TIN.

Following table will illustrate the differences between PAN, TAN and TIN.

Conclusion

In nutshell, these unique identity numbers are issued to discharge the compliances in different capacities and for specific purposes. Online mode of application and update has added convenience along with compliance. It has also significantly reduced the time to obtain these numbers. The clarity of purpose is essential so that there is no lapse in compliance, resulting in penal consequences.

Frequently Asked Questions