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.
| Basis | PAN (Permanent Account Number) | TAN (Tax Deduction/Collection Account Number) | GSTIN (Goods and Service Tax Identification Number) |
| Applicant | Taxpayers/Non Taxpayers/Foreign Nationals/ Foreign Entities | Person required to Deduct/Collect tax at Source under section 203A | Person may voluntarily get registered. It is mandatory to obtain GSTIN on exceeding the Threshold Limit. |
| Issuer | Income Tax Department | Income Tax Department | GST Department |
| Mode of Application | Can be applied online through NSDL website/ UTIITSL website or through any of NSDL TIN facilitation centres/ PAN Centres. | Can be applied online through NSDL website or through TIN facilitation Centres. | Can apply online on the GST portal or Visit GST Seva Kendra set up by the Govt. |
| Form | Application is made in Form 49A/49AA incase of Non Residents | Application is made in Form 49B | It is a two step verification process application in PART A of form GST REG-01 once GST officer approves application GSTIN is assigned, |
| Documents Required | Proof of Identity Proof of Address Proof of Date of Birth | The form asks for details such as an address, name, nationality, contact number, PAN, etc. No other document except Acknowledgement and proof of payment is to be submitted. | PAN card of the owner Aadhar card of the ownerPhotograph of the owner (in JPEG format)Bank account detailsAddress proof |
| Purpose | For Filing of Income Tax Returns.Payments of ChallansAny correspondence with Income Tax Department Specified Transactions | TDS/TCS returns TDS/TCS ChallansTDS/TCS CertificatesDocuments prescribed by the Income TAx Department. | Tax Invoices Debit Note Credit NoteGST returnsClaiming ITC For all the correspondence with GST Department |
| Code | 10 Digit Alphanumeric Code | 10 Digit Alphanumeric Code | 15 digit PAN based and state based code. |
| Penalty for non compliance | ₹10000 | ₹10000 | Penalty of Rs.10,000 or amount of tax evaded or any short tax liability whichever is higher. |
| Cancellation | The holder of a PAN card can make an application for cancellation/ surrender of PAN if PAN is not in use or if more than one PAN has been allotted. | TAN can be cancelled or surrendered if not in use or if more than one TAN has been allotted. | Registration can be cancelled on making an application for cancellation in case of permanent closure of business.In certain cases a Proper officer on his own, can also cancel registration. |
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
Is separate TAN required to be obtained for the purpose of Tax Collection at source?
If the TAN Number is already allotted, the same number can be quoted for all returns , challans and certificates of TCS.
For how long PAN/TAN/GSTIN are valid?
These are valid for a lifetime once allotted. They are valid throughout India.
What is an Instant PAN?
It is a new functionality on the e-filing portal which allots a PAN to the assessee on basis of his Aadhaar Number. This facility can be used by an assessee only if the following conditions are fulfilled.
He has never been allotted a PAN;
His mobile number is linked with his Aadhaar number;
His complete date of birth is available on the Aadhaar card;
He should not be a minor on the date of application for PAN.
Can Minor quote his Parents PAN ?
Minor person can quote the PAN of his father or mother or guardian provided he does not have any income chargeable to income-tax.
Can I quote my PAN in the field requiring a TAN Number?
No. PAN should never be quoted in the field where TAN is required to be quoted. The purposes for which PAN and TAN are allotted are different.
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