New Delhi | Jagran Business Desk: There are various terminologies used in the taxation field which sound similar, however, they have different meanings. It is important to understand those terms as without understanding them, the process of filing taxes will become difficult for a taxpayer. PAN, TAN, and TIN are some of the commonly used terms in taxation. Though the words sound similar, they have different meanings.

What is a Permanent Account Number (PAN)?

Permanent Account Number, PAN, is a ten-digit code that consists of numbers and alphabets. The main purpose of the document is to keep track of all the transactions made by the cardholder. Every PAN is unique, and a similar PAN number can not be issued to two people.

What is Tax Deduction and Collection Account Number (TAN)?

A 10 digit alphanumeric code is issued by the Income Tax Department which, keeps track of tax collected at source (TCS) and tax deducted at source (TDS). The provision of TAN documents either in TCS or TDS is a must for deductors. Banks may reject your TDS payment and return if you forget to include the TAN. If you want to apply for TAN online or offline then, you have to submit Form 49B.

What is Tax Identification Number (TIN)?

TIN is an 11 digits number, in which the first two numbers represent the state code, as mandated by the Ministry of Home Affairs and the rest of the nine numbers represent the municipality or district where the firm has registered itself. A TIN is issued to a person who runs a business or entity that has registered for Value Added Tax (VAT).

The document is also used for inter-state sales transactions and makes it easy to tack multiple VAT payments.

Posted By: Mallika Mehzabeen