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Difference Between TIN and TAN

What is TIN?

Taxpayer Identification Number or TIN is a 11-digit number registration number allocated to business enterprises and organizations in India for whom Value Added Tax is applicable. It is part of the "Tax Information Network" initiative created by Income Tax Department to make the entire process of collection, processing, accounting and monitoring of direct taxes online. The first two characters of TIN represent the State code, as used by the Union Ministry of Home Affairs, while the remaining digits differ from state to state, representing the area and district where the dealer is registered.

TIN will be applied for sale transactions within a state as well as between two or more states. Traders, manufacturers and dealers who are liable to pay taxes are required to compulsorily mention TIN in all VAT transactions. The state codes applicable are as follows:

Name of the State TIN - First two digits State Code
Jammu and Kashmir 01 JK
Himachal Pradesh 02 HP
Punjab 03 PB
Chandigarh 04 CH
Uttarakhand 05 UT
Haryana 06 HR
Delhi 07 DL
Rajasthan 08 RJ
Uttar Pradesh 09 UP
Bihar 10 BH
Sikkim 11 SK
Arunachal Pradesh 12 AR
Nagaland 13 NL
Manipur 14 MN
Mizoram 15 MI
Tripura 16 TR
Meghalaya 17 ME
Assam 18 AS
West Bengal 19 WB
Jharkhand 20 JH
Odisha 21 OR
Chhattisgarh 22 CT
Madhya Pradesh 23 MP
Gujarat 24 GJ
Daman and Diu 25 DD
Dadra and Nagar Haveli 26 DN
Maharashtra 27 MH
Andhra Pradesh 28 AP
Karnataka 29 KA
Goa 30 GA
Lakshadweep 31 LD
Kerala 32 KL
Tamil Nadu 33 TN
Pondicherry 34 PY
Andaman and Nicobar Islands 35 AN
Telangana 36 TS
Andhra Pradesh (new) 37 AD

Source: ddvat.gov.in/docs/List%20of%20State%20Code.pdf

Note - The newly introduced 15-digit Goods and Services Taxpayer Identification Number (GSTIN) has now replaced TIN.

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What is TAN?

Tax Deduction and Collection Account Number or TAN is a unique 10-digit alpha-numeric number assigned by the Income Tax Department to all persons responsible for tax deduction or collection. The first four characters of TAN are alphabets, the next five comprise of numbers and the last character is an alphabet. For example, TAN allotted to Mr. Ramesh of Delhi may appear as: DEL R 12345 L. The I.T. Department allocates TAN to an applicant on the basis of the application submitted to NSDL-TIN online or to NSDL- Facilitation Centre (offline), managed by NSDL. The NSDL then directly intimates TAN to the applicant on the address mentioned in the application form.

Relevance of TAN:

According to Section 203A of the Income-tax Act, 1961, every individual who deducts or collects tax at source is required to apply for TAN allotment. Section 203A has also made it necessary to quote TAN for the following documents:

  • TDS statements i.e. return
  • TCS statements i.e. return
  • Challans for payment of TDS/TCS
  • Statement of financial transactions or reportable accounts
  • TDS/TCS certificates
  • Other documents, as may be prescribed

Source: Income Tax Department

Difference Between TAN and TIN

The differences between TAN and TIN have been covered in the table below:

TAN TIN
TAN is allocated by the Income Tax Department of India. TIN is allocated by the Commercial Tax Department of the applicant’s state.
It is 10-digit alpha-numeric number assigned to all persons responsible for tax deduction or collection. It is a 11-digit registration number allocated to business enterprises and organizations for whom VAT is applicable.
Its purpose is to streamline TDS and TCS. It is used to track-VAT related activities in the nation.
Form 49B has to be filled and submitted by individuals applying for TAN. The application forms differ depending on the state.
Rules pertaining to TAN can be found under Section 203A of the Income-tax Act, 1961. States have different Acts under which TIN is applicable.
There is no need to submit any documents along with the application form. However, in the case of online application, the signed acknowledgment that is generated on filling up the form has to be forwarded to the NSDL. The documents required include identity proof, address proof and others, depending on the state.

Summary of TIN vs. TAN

TIN and TAN are two numbers that people quite often confuse with each. While they may appear to be similar at first, in reality, they are very different from each other. The common factor between the two, however, is that they serve the purpose of being an identifying tax number.

TIN is beneficial for both, the state and the individual entity. It provides the entity the opportunity to have one centralized place for all VAT transactions. One can view how much VAT has been collected, paid, or needs to be paid in the near future. On the other hand, TAN is assigned to banks or companies. This number helps keep track of tax collections and deductions taking place at the source. An example of a company that requires a TAN is one where the employee’s salary has tax deducted prior to payment of the net amount. Here, the Income Tax Department will allocate the TAN to the company.

FAQs on TIN and TAN

How to apply for TAN?

A deductor can either make an online application through the NDSL website or handover physical TAN application to any TIN-Facilitation Centre of the NSDL. Applicants are advised to go through the instructions listed in the application form before filling the form.

How to track the status of TAN application?

Applicants can keep track of the status of their TAN application using the 14-digit unique Acknowledgment Number. To do this, individuals need to enter the number in the ‘status track facility’ on the website. Alternatively, applicants can also call TIN Call Centre on 020 – 2721 8080 to get an update about the application. The status can also be tracked by sending an SMS - NSDLTAN to 57575.

Who needs to have TIN?

TIN registration is mandatory for manufacturers, traders, exporters and dealers.

Why is TAN necessary?

TAN has to be quoted in i) all TDS/TCS returns, ii) all TDS/TCS payment challans and iii) all TDS/TCS certificates to be issued. TDS/TCS returns will not be received, if TAN is not mentioned and challans for TDS/TCS payments shall not be accepted by banks. Failure to apply for TAN or not listing it in the specified documents will attract a penalty of Rs. 10,000.

Can PAN be quoted in the place of TAN?

No. PAN cannot be quoted in the field that requires TAN to be mentioned. The purposes of both these numbers are different. TAN serves as a unique identification number that is allotted to entities deducting or collecting tax at source on behalf of the Income Tax Department. PAN is a unique number assigned to assessees like individuals, companies etc.

What are the consequences of not quoting TAN?

Section 272BB(1) of the Income Tax Act states that a penalty will be applicable for failure to obtain TAN and Section 272BB(1A) provides the penalty for mentioning incorrect TAN. The penalty levied under Section 272BB is Rs. 10,000.

What are the documents required while applying for TIN?

Given that TIN is furnished by state governments, the documents required will vary from one state to another. Some of the documents that may be required include proof of identity, proof of address, proof of address of the enterprise and proprietor's PAN card.

What is GSTIN?

Goods and Services Tax Identification Number or simply ‘GSTIN’ is a 15-digit identification number allocated to every GST-registered dealer. Prior to the implementation of GST, all dealers registered under the state VAT law were given a unique TIN number by the respective state tax authorities. Following the introduction of the new tax regime on 1 July, 2017, TIN has been replaced by GSTIN.

What is the format of GSTIN?

The format of GSTIN is as follows:

  • The first two digits comprise of the state code.
  • The following 10 digits denotes the PAN of business entity or proprietor.
  • The 13th digit is based on the number of registrations done.
  • The 14th digit, by default is 'Z'.
  • The final digit is the check code. This can either be a number or an alphabet.

What is the fee for filing TAN application?

At present, the fee for filing the TAN application is Rs. 65 plus GST, as applicable. The application fees may change from time to time.

Are there any charges for obtaining GSTIN?

No. An entity can obtain GSTIN and register for GST free of cost.

Would a separate TAN need to be obtained for tax collection at source (TCS)?

If a TAN has been allocated already for TDS, then there is no need to get a separate application for obtaining another TAN for TCS. The same number can be mentioned in all returns, challans and certificates for TCS. However, if no TAN has been assigned, a duly-completed Form 49B has to be submitted at any TIN-FC.

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