Permanent Account Number – A Permanent Account Number or PAN is a unique 10 digit alphanumeric code which is provided to every taxpayer or assessee in the country. It is issued by the Income Tax Department and is a mandatory requirement for every entity indulging in economic activity beyond a certain financial limit in the country.
Tax Deduction and Collection Account Number – TAN is a unique 10 digit alphanumeric code whose primary purpose is related to deduction or collection of tax. All entities who deduct or collect tax must have a TAN, quoting it in their TDS or TCS documents.
Taxpayer Identification Number – TIN or Taxpayer Identification Number is an 11 digit numeric code which is mandatory for traders or dealers who participate in transactions which attract VAT. All businesses which participate in interstate trade are expected to have a TIN. A TIN is often called the VAT Number or Sales Tax Number and individuals should not confuse these terms.
Differences between PAN, TAN and TIN
| PARAMETER | PAN | TAN | TIN | |
| Issuing Agency | Income Tax Department | Income Tax Department | Commercial Tax Department of a 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) | None. In case of online application, the signed acknowledgment 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 | |
