Difference between TIN and TAN

There are differences between the Tax Deduction and Collection Account Number (TAN) and Tax Identification Number (TIN). Both are important when filing of income tax returns. There are some important differences between both.

Income tax is one of the most scary and complex topics for a lot of individuals. The calculation of tax and various terms associated with it make it difficult to grasp. TAN and TIN are two such terms that confuse a lot of people. Both these terms are relevant with respect to filing of tax in any financial year. Let us look into the difference of TIN and TAN and see how are these two different.

Major Points of Difference between TIN and TAN

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

FAQs on TAN and TIN

  1. Who allots TAN to applicants?
  2. TAN is allotted by the Income Tax Department of India. TIN-NSDL and TIN facilitation centers are the entities who furnish TAN on behalf of the IT department.

  3. What happens if my form 49B is submitted incomplete?
  4. In case of incomplete forms 49B, the Income Tax Department rejects the TAN application.

  5. How will I receive my TAN?
  6. The IT department will ensure via NSDL that your TAN reaches your communication address mentioned in form 49B.

  7. Are government agencies which deduct TDS on behalf of IT department required to possess TAN?
  8. Yes. Any entity deducting tax on behalf of the IT department, public or private, is required to possess and furnish TAN wherever required.

  9. What is duplicate TAN? Is it legal to hold multiple TANs?
  10. Holding more than one TAN is illegal. If by any chance an entity gets allocated two TANs, then a case of duplicate TAN arises.

  11. What do I do if I have two TANs allotted to me?
  12. The ideal thing in such a case is to use the TAN which was assigned earlier and then surrender the newly or duplicate assigned TAN by using the particular form on the TIN-NSDL website.

  13. Can I get any changes done for the TAN that has been furnished to me? Changes like those in name or address?
  14. Yes. For changes to your TAN information, please fill in the correction/modification form on the TIN-NSDL website and submit the same. The same procedure can be followed for offline correction also through any of the TIN facilitation centers.

  15. What if I possess multiple TIN?
  16. Same as PAN, multiple TINs may impose a penalty fee depending upon the state in which it is issued.

  17. Who furnishes TIN to applicable entities?
  18. The Commercial Tax Department of the applicant’s respective state furnishes TIN.

  19. What is the importance of TIN?
  20. Just like for identifying tax related activities of individuals, PAN is required, similarly for tracking tax transactions of business enterprises, TIN is required by the Income Tax Department.

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