PAN, TAN, TIN - Do you know the difference between PAN, TAN, and TIN numbers, let's know today
As we know various documents are required for various government and non-government works in India, PAN, TAN, and TIN numbers are required for taxation and financial transactions, but many people are often confused. These abbreviations are often used interchangeably, but they represent different concepts and serve different purposes. Let's know the difference between them-
What is the PAN number?
PAN stands for Permanent Account Number. It is a unique ten-digit alphanumeric code issued by the Income Tax Department. The primary purpose of PAN is to track the financial transactions of individuals and entities, ensuring transparency and accountability in the tax system. PAN is important for filing income tax returns, making high-value transactions and carrying out various other financial activities.
What is TAN number?
TAN stands for Tax Deduction and Collection Account Number. This ten-digit alphanumeric number is also issued by the Income Tax Department. TAN is mainly used by businesses and institutions to deduct or collect tax at source (TDS/TCS). TDS payments may be rejected by banks if the correct TAN is not used.
What is TIN Number?
TIN stands for Tax Identification Number. It is an eleven-digit alphanumeric number used to identify taxpayers engaged in interstate sales transactions. The first two digits of TIN represent the state code prescribed by the Ministry of Home Affairs.