What are these three-digit terms: TAN, PAN, DSC, and DIN? When applying for company registrations, filing income tax returns, applying for a loan, and deducting taxes, one must have these documents in hand.
Entrepreneurs starting a new venture but not knowing the 3-digit terms, which are extremely important to know before starting their business, what these 3-digit terms are, their purpose and their uses,
In this blog, we can discuss the major terms used for company registration. Many people don’t even know what TAN, PAN, DSC, and DIN are. Before getting business registrations, we can deeply understand these terms one by one, what their uses are, and how they are interlinked.
What Is TAN (Tax Deduction and Collection Account Number)?
TAN is a 10-character alphanumeric code issued by the Income Tax Department. It is abbreviated as Tax Deduction and Collection Account Number. The purpose of TAN is to deduct and collect taxes at source. Every individual or entity that has to deduct or collect tax at source
TAN is under Section 203A of the Income Tax Department. Form 49B is required for TAN registration online. In the case of an online application, a signed acknowledgement needs to be submitted.
What Is PAN (Permanent Account Number)?
PAN is abbreviated as Permanent Account Number. It is a unique 10-character alphanumeric code issued to each taxpayer, whether it is a business, an individual, a trust, a HUF, or more. It is also issued by the Income Tax Department. PAN is mandatory as an effective form of identity for Indian citizens. If someone wants to register a company, a PAN is an essential document for registration.
The purpose of a PAN is to track financial transactions that may carry a taxable component, as issued by the Income Tax Department.
Documents required for obtaining a PAN number are:
- Photographs of the applicant in the case of individuals
- Address proof
- Valid ID proof
- Certificate of Incorporation in the case of a company or LLP
What Is DSC (Digital Signature Certificate)?
A DSC is a Digital Signature Certificate, which is an electronic authorisation format that serves as proof of an individual’s identity for certain online forms. DSCs are mainly used by the GST fillings, MCA department, the DGFT department in India, and so on.
Digital signatures are classified into different classes, But Mostly used:
Class 3:
- Class 3 digital signatures are one of the most secure forms of digital certificates used to verify the identity of the signee.
- The Controller of Certifying Authorities, India, issued guidelines stating that only Class 3 digital signature certificates will be issued as of January 1, 2021.
- Digital signatures can be used for the following purposes: MCA e-filing, LLP e-filing, action, and tenders. Income tax return filings, GST filings, etc.
The following documents are required for a DSC certificate:
- Photo of the applicant
- Email ID and password of the applicant
- PAN card and Aadhaar card of the applicant
What Is DIN (Director Identification Number)?
DIN is a Director Identification Number, which is a unique number issued to an existing director or a newly appointed director in the company for company registrations. DIN contains all the personal information of the person who is becoming a director of the company. To obtain the DIN, apply for the DSC (Digital Signature Certificate). DIN is an 8-digit code which holds lifetime validity. It means there is no headache to manage the renewal compliance. Further, a single director holds only one DIN even across multiple companies.
There are many reasons for the allotment of DIN.
- Create a database for all the directors.
- Reliability of directors
- Confirming the existence of the directors in the company
- To avoid financial spam by making fake companies
Did You Know: Directors do not need to apply for a separate application for DIN, as it is issued automatically after complete filing of SPICe+ Part B.
Conclusion
Before starting any business, entrepreneurs must have knowledge of these important 3-digit terms, which will help in the proper filing of their taxes and also protect them from any penalties. At JustStart, we help business start-ups by providing them with proper guidance so that they can run their businesses hassle-free, as we provide them with all legal and tax compliance requirements so they can run smoothly.
Frequently Asked Questions (FAQs)
Q1. Can I use PAN instead of TAN?
Ans. No, you cannot use the Permanent Account Number (PAN) instead of a Tax Deduction and Collection Account Number (TAN) for any general business or regular tax deduction.
Q2. How to get the PAN and TAN for my new company?
Ans. To get the PAN and TAN for your new company, apply during incorporation through the MCA portal by using the SPICe+ form. You get it automatically during issuance of the Certificate of Incorporation and completely free.
Q3. Which DSC is applicable for the new MCA-registered companies?
Ans. All new MCA-registered companies are required to obtain the Class 3 DSC (Digital Signature Certificate) for filing on the MCA V3 portal.
Q4. What documents are required for a DSC (Digital Signature Certificate)?
Ans. For the DSC, the applicant is required to provide identity proof, address proof, a photograph, and a mobile number.
Q5. What is the cost of DIN?
Ans. If you are applying for DIN (Director Identification Number) via Form DIR-3, then the government fee is ₹500.
Q6. Is DIN KYC required every year?
Ans. No, it is no longer mandatory for DIN holders to file the DIR-3 KYC every year. Since March 31, 2026, an amendment published by the Ministry of Corporate Affairs (MCA) has made filing compliance from annual to once every three consecutive financial years.
Q7. What is the new due date for the DIN DIR-3 KYC?
Ans. The due date for DIR-3 KYC has been changed from September 30 every year to 30th June (one in a three years).
Q8. What is the main purpose of a company PAN?
Ans. The main purpose of PAN (Permanent Account Number) is to identify the corporate identity and track financial transactions.
