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Key Difference Between TIN, TAN, PAN, DSC, And DIN

Difference Between TIN, TAN, PAN, DSC, And DIN

What are these three-digit terms: TIN, TAN, PAN, DSC, and DIN? When applying for company registrations, filing income tax returns, applying for a loan, and deducting taxes, one must have the documents in hand.

Entrepreneurs starting a new venture but not know 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 registrations. Many people don’t even know what TIN, 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 TIN?

TIN is abbreviated as Taxpayer Identification Number. It is an 11-digit registration number assigned to business entities or dealers of goods or services for whom VAT is applicable. It is issued by the state government’s Commercial Tax Department.

Different states have different laws for TIN registration.

Now TIN or VAT is replaced by GST or GSTIN with effect from July 1, 2017. All entities that have VAT or TIN registration are mandatorily required to obtain GST registration.

Documents Required For GST Registration Are:

  • PAN card of the applicant
  • ID proof for the applicant
  • Address proof of the applicant, like an electricity bill, a telephone bill, etc. If the address proof is not owned, then require a NOC from the owner on a stamp paper or rent agreement.
  • Photo of the applicant in the case of proprietorship

In the case of a Pvt. Ltd. company or an LLP, a Company certificate of incorporation is required.  

What Is TAN?

TAN is a 10-Digit 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 acknowledgment needs to be submitted.

What Is PAN?

PAN is abbreviated as Permanent Account Number. It is a unique 10-digit identification 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 check on 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?

A DSC is a digital signature certificate, which is an electronic authorization format that serves as proof of an individual’s identity for certain online forms. DSCs are mainly used by the GST fillings, MCA department, DGFT department in India, and so on.

Digital signatures are classified into different classes. They are:

  • Class 1:

Class 1 DSCS are used to verify an email address associated with a person.

  • 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-filling, LLP e-filling, action, and tenders. Income tax return fillings, GST fillings, etc.

The following documents are required for a DSC certificate:

  1. Photo of the applicant
  2. Email ID and password of the applicant
  3. PAN card and Aadhar card of the applicant

What Is DIN?

DIN is a Director Identification Number, which is a unique number issued to the existing director or the 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. A digital signature is also mandatory for obtaining a Director Identification number.

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

Wrap up

Before starting any business, entrepreneurs must have knowledge of these important 3-digit terms, which will help in the proper filing of your taxes and also protect you 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 compliances so they can run smoothly.

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