Obtaining Your Tin: Using Your Pan Card

Tax Identification Number (TIN) is a unique 11-digit identification code assigned to individuals and businesses by the government to help track and identify taxpayers, ensuring proper tax compliance. In India, every business gets a unique TIN, which is required for tax authorities and government agencies to identify and verify businesses. This number is essential for various tax filings like VAT, CST, and TDS, and helps prevent tax evasion and fraud. To obtain a TIN, individuals must submit proof of identity, address, and business registration documents, among other requirements. While TIN is crucial for businesses, it is different from the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), which serve distinct purposes in the financial and tax systems.

Why you need a TIN number

A Tax Identification Number (TIN) is a unique nine-digit number that identifies you to the IRS. It is required on your tax return and is requested in other official interactions. Tax ID numbers are assigned by either the IRS or the Social Security Administration.

• For credit purposes: Banks and other lenders require a Social Security number (a type of TIN) on credit applications. This information is then used to ensure that the correct person fills out the application. Credit reporting agencies also use TINs, especially SSNs, to report and track an individual's credit history.
• For employment: Employers require an SSN from anyone applying for employment. This ensures that the individual is authorized to work in the United States. Employers verify the numbers with the issuing agency.
• For tax purposes: A TIN is required when filing your tax return or when claiming benefits. It is also necessary when talking to the IRS.
• For opening a bank account: A TIN is required when opening a bank account.
• For applying for a loan: A TIN is also necessary when applying for a loan.
• For buying or renting property: A TIN is required when buying or renting property.
• For government services: A TIN is needed to access government services.
• For running a business: Businesses require a TIN to operate and pay taxes.

How to apply for a TIN number online

A Tax Identification Number (TIN) is a unique nine-digit number that identifies you to the IRS and is required on your tax return and for other official interactions. There are several types of TINs, each with its own application process. Here is a step-by-step guide on how to apply for a TIN number online:

Individual Taxpayer Identification Number (ITIN)

To obtain an ITIN, you must complete IRS Form W-7, the Application for an IRS Individual Taxpayer Identification Number. This form requires you to provide documentation proving your foreign/alien status and identity. You can either mail the documentation along with Form W-7 to the address provided in the form instructions, or present it in person at an IRS walk-in office.

Alternatively, you can process your application through an Acceptance Agent authorized by the IRS. Acceptance Agents are entities such as colleges, financial institutions, or accounting firms that are authorized to assist applicants in obtaining ITINs. They review your documentation and forward the completed Form W-7 to the IRS for processing.

Employer Identification Number (EIN)

An EIN is a tax ID number for businesses with employees, corporations, or partnerships. To apply for an EIN, you can fill out IRS Form SS-4 and fax or mail it to the IRS. International applicants can call 1-267-941-1099 to obtain an EIN.

Adoption Taxpayer Identification Number (ATIN)

To obtain an ATIN, file IRS Form W-7A, the Application for a Taxpayer Identification Number for Pending U.S. Adoptions. You will need to attach a copy of the placement documentation. The child must be legally placed in your home for adoption. If you are adopting a child from another country, there may be additional rules to follow.

Preparer Tax Identification Number (PTIN)

A PTIN is required for anyone who prepares or assists in preparing federal tax returns for compensation. To obtain a PTIN, tax preparers can apply online through the IRS website or by filling out and mailing IRS Form W-12. The online application typically takes around 15 minutes to complete, while the paper application can take up to six weeks to process.

It is important to note that the specific steps and requirements for obtaining a TIN may vary depending on your individual circumstances and the type of TIN you are applying for. Always refer to the official IRS website or seek professional advice for the most up-to-date and accurate information.

Documents required for a TIN application

The documents required for a TIN application vary depending on the applicant's status and country of residence. Here is a general overview of the documents needed to apply for a TIN:

Philippines:

• BIR Registration Form (Form 1902 for employed individuals, Form 1904 for unemployed/students)
• Valid government-issued ID (e.g., birth certificate, passport, driver's license)
• Marriage contract (if applicable)
• Proof of address or residence
• BIR-printed receipts/invoices or final and clear samples of principal receipts/invoices
• Special Power of Attorney (SPA) and ID of an authorized person (if the taxpayer cannot make a personal appearance)
• DTI Certificate (if a business name is used)
• Franchise Documents (e.g. Certificate of Public Convenience for Common Carrier)
• Photocopy of the Trust Agreement (for Trusts)
• Certificate of Authority (for Barangay Micro Business Enterprises)
• Proof of Registration/Permit to Operate with relevant economic zones or government agencies

India:

• PAN card of the proprietor
• Proof of address of the business enterprise
• Passport-size photographs of the proprietor
• Reference or security
• Certificate of incorporation of the business entity
• Memorandum of association and articles of association (for companies registered under the Companies Act)

How to check your TIN application status

To check your TIN application status in Sri Lanka, you can either use the IRD website or the AskURA app on your phone. Here are the steps for each method:

Checking TIN Application Status on the IRD Website:

• Go to the IRD Sri Lanka website.
• Select your preferred language.
• On the main menu, click on 'e-Services' and then 'Access to e-Services'.
• Choose 'Taxpayer Registration' to register as a taxpayer and obtain your TIN.
• Under Registration Type, select the appropriate category (e.g., Individual Local or Registered Company).
• Fill in the required details.
• Upload any supporting documents.
• Add the purpose of your registration.
• Complete the declaration form with your name, designation, and contact information.
• Submit the form and take note of the acknowledgement number.
• Check your application status using the acknowledgement number.

Checking TIN Application Status on the AskURA App:

• Open the AskURA App on your phone.
• Enter your email or phone number that you used to register for your TIN.
• Tap on 'Select Taxpayer Type' and choose either 'Individual' or 'Non-Individual'.
• The app will display your TIN-registered details, including the status of your application.

It is important to keep track of your TIN application status to ensure that you are compliant with the tax regulations in Sri Lanka.

Difference between PAN, TAN, and TIN

PAN, TAN, and TIN are some of the most commonly used terms in the world of taxation, especially when filing taxes or dealing with the Income Tax Department. Here is a detailed breakdown of the differences between these terms:

PAN (Permanent Account Number):

PAN is a 10-digit alphanumeric code that serves as a universal identification number for financial transactions. It is issued by the Income Tax Department to taxpayers, including individuals, businesses, trusts, HUFs, and foreign citizens. PAN is mandatory for Indian citizens starting a company or LLP and for various financial transactions like tax payments, returns, and loan applications. It is also required for transactions exceeding a certain amount, typically Rs. 50,000. The structure of a PAN includes alphabets, numbers, and a check digit, with each part representing specific information.

TAN (Tax Deduction and Collection Account Number):

TAN is a 10-digit alphanumeric number issued by the Income Tax Department to entities responsible for deducting or collecting tax at source (TDS or TCS). It is mandatory for filing TDS/TCS returns, challans, and certificates, and must be quoted on all related documents. TAN consists of four alphabets, five numbers, and one alphabet, with the first three alphabets representing the jurisdiction code and the last being a check digit. Businesses deducting TDS from employee salaries, making payments that require TDS deduction, or involved in tax collection need a TAN.

TIN (Tax Identification Number):

TIN, also known as VAT (Value Added Tax), CST (Central Sales Tax), or Sales Tax Number, is an 11-digit numeric code issued by the commercial tax department of the respective state governments. It is used to identify businesses/entities registered under VAT, CST, or GST. TIN is required for businesses involved in interstate sales, manufacturers, exporters, shopkeepers, dealers, e-commerce sellers, and anyone liable to pay VAT or Sales Tax. TIN allows for the tracking of VAT-related activities and simplifies tax compliance across different states.

Key Differences:

| Criteria | PAN | TAN | TIN |

|---|---|---|---|

| Issuing Agency | Income Tax Department | Income Tax Department | Commercial Tax Department of respective state |

| Code Format | 10-digit alphanumeric | 10-digit alphanumeric | 11-digit numeric (first 2 digits are state code) |

| Purpose | Universal identification for financial transactions | Streamlining tax deduction and collection at source | Tracking VAT-related activities |

| Required for | Taxpayers and assessees | Entities deducting/collecting tax at source | Retailers, traders, and businesses paying VAT or Sales Tax |

| Legal Basis | Section 139A of IT Act, 1961 | Section 203A of Income Tax Act, 1961 | Varies by state |

| Penalty for Non-Compliance | Rs. 10,000 | Rs. 10,000 | Varies by state |

| Application Form | Form 49A (Indians), Form 49AA (foreigners) | Form 49B | Varies by state |

In summary, PAN is for taxpayers to facilitate financial transactions, TAN is for entities deducting or collecting tax at source, and TIN is for businesses and traders involved in VAT or Sales Tax to streamline their tax obligations.

Frequently asked questions