Difference between TIN and TAN
What is TAN?
TAN is short-form for Tax Deduction and Collection Account Number. TAN is a unique ten-character code that is assigned to entities that are eligible for collecting TDS or tax on behalf of the Income Tax Department. TAN is required for furnishing TDS details collected by any entity. Examples of such entity include corporates, offices that deduct tax on behalf of tax department.
TAN is mandatory for such entities under section 203A of the Income Tax Act , 1961 and not quoting the same while filing TDS is subject to a penalty of Rs.10,000 as per section 272BB of the act.
What is TIN?
TIN or Tax Identification Number is a unique 11 character identification number that is allotted to all taxpayers registered under VAT for sale of goods and services. Like individuals, all business enterprises too are required to file their taxes. The way PAN is required for any tax transaction handled by individuals, TIN is required by business enterprises. Quoting of TIN is mandatory for filing of taxes by a business enterprise. Failing to do so may attract penalty similar to how it is done for PAN.
Major Points of Difference between TIN and TAN:
| PARAMETER | TAN | TIN |
| Issuing Agency | Income Tax Department of India | Commercial Tax Department of the applicant’s state |
| Purpose | Streamline deduction and collection of tax at source | Track VAT related activities in the country |
| Form to be used for Application | Form 49B | Forms vary for different states |
| Code type | Alphanumeric code of 10 characters | 11 digit numeric code (where the first 2 digits signify the state of the applicant) |
| Structure of Code | TAN is composed of 4 alphabets, followed by 5 numbers, with an alphabet as the last character | TIN is composed of 11 digits only |
| Who should have it | Any entity that is eligible to deduct TDS on behalf of the Income Tax Department | Any enterprise that is liable to pay Value Added Tax or VAT |
| Sections of IT Act which account for it | Section 203A of Income Tax Act of 1961 | Different states have different Acts under which TIN is applicable |
| Fines/Penalties Applicable | Penalty of Rs. 10,000 may be levied | Penalties vary according to state |
| Documents Required to Apply | None. Only form 49B needs to be filled and submitted | Proof of registration, PAN, ID proof of owner, etc. (documents may vary depending on state) |
| Maximum number of TAN/TIN that can be owned by an entity | One | One |
| Cost of Application | Rs.55 plus service tax | Varies according to state |
