How to Apply Tax Identification Number India - What is TIN

November 20, 2024
tax identification number india
Quick Summary

Quick Summary

  • TIN stands for Taxpayer Identification Number.
  • TIN is used in India for tax purposes, helps monitor various transactions and is essential for VAT.
  • For TIN application, PAN card, address & identity proofs, business details, references and bank statements are required.

Table of Contents

Individuals and corporations are assigned a Tax Identification Number India (TIN) to monitor their tax responsibilities and payments to the Federal Revenue Service. The federal government issues it. Individuals may get a TIN from the (SSA) Social Security Administration, while corporations and other organizations can get one from the IRS. 

TIN is an identification number issued to corporate companies for recording transactions, similar to PAN, which is assigned to individual taxpayers. All VAT-registered organizations must trade goods and services. The move aims to centralize all tax-related details for companies operating in many states and conducting intra-state and inter-state activities.

The Income Tax Agency assigns TINs to commercial businesses to track transactions and attribute them to different organizations. The TIN is made up of 11 characters, the final two of which represent the applicant’s state. The IT department issues a TIN to business dealers who want to register for VAT or Central Sales Tax (CST).

Read on to dig deeper into the details of TIN numbers and get vital insights on tax identification numbers in India.

What is a Tax Identification Number India (TIN)?

A tax identification number is a one-of-a-kind collection of numbers that identifies persons, businesses, and other legal entities such as nonprofit organizations (NPOs). Any individual or organization must apply for a TIN. After authorization, the assigning agency issues a unique number to the applicant.

The Tax Identification Number, commonly known as a taxpayer identification number, is required for anybody submitting yearly tax returns to the IRS and is used to trace taxpayers. Filers must mention the number on tax-related papers and when receiving government benefits or services.

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Where is the Tax Identification Number Used?

Unlike PAN and TAN cards, the TAX Identification Number in India is an 11-digit unique number issued by the Commercial Tax Department of the respective Indian state. Further discussion can involve:

  1. A company identification number monitors transactions.
  2. All VAT-registered firms require a document.
  3. When companies sell products or services inside a state or between two or more states, they utilize the TIN.
  4. It is a contemporary approach to collecting, processing, monitoring, and accounting for direct taxes.
  5. All VAT transactions must include the TIN.

Who Needs a Tax Registration Number in India?

1. Banks and other lenders demand Social Security numbers for loan applications. Credit bureaus then receive this information to ensure that the correct person fills out the application. Credit reporting organizations utilize TINs, specifically SSNs, to record and monitor an individual’s credit history.

2. Employers demand an SSN from everybody who applies for a job. This ensures that the person is legally permitted to work in the United States. Employers confirm the figures with the issuing agency.

3. Companies must also get state identification numbers to submit tax returns to their respective state tax offices. The state taxation authority immediately issues the I.D. number to the filer.

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Importance of Tax Identification Number in India

TIN is crucial for the following reasons:

  1. It centralizes crucial tax-related information on a single platform.
  2. After obtaining the TIN, one may claim an input tax credit.
  3. It aids in the identification of assets under the Income Tax Act.
  4. Companies with TINs may simply continue their operations.
  5. It aids in the recording of intra- and inter-state transactions.
  6. It unifies all vital tax-related information and makes it accessible via a single platform. It also aids in the identification of assets under the IT Act.

Also Read: Mastering Tax Planning: Why Tax Planning Matters More Than Ever in Today’s Economy

Format of TIN Number

The Tax Identification Number in India consists of 11 characters. The government supplies the first nine characters, and the remaining nine characters represent the applicant’s current state.

How do you apply for a Tax Identification Number in India (TIN) Online?

If you’re curious to know how to get a TIN, there is a regular application process to apply for a tax identification number online in India. You can refer to the outline below for applying for a TIN online:

  1. Go to the site of your state government and register for the VAT portal.
  2. After completing, log in to the online portal.
  3. Fill out the TIN registration form on the portal with the essential information.
  4. Attach all supporting documentation.
  5. After completing the TIN application, submit the form. Once you submit. The government’s IT department will confirm it.
  6. Once the verification is complete, you will receive a tax identification number and a provisional certificate.
  7. A VAT inspector will visit the business location to complete the final verification process and issue the TIN.

Documents Required for TIN Registration

The documentation necessary for Tax Identification Number application may differ depending on the restrictions established by state governments. Nonetheless, the following are some common documents for TIN registration numbers that most states accept:

  1. 4-6 passport-sized pictures.
  2. PAN card of the proprietor.
  3. Applicant’s address proof.
  4. Identity proof.
  5. Address proof of your registered business.
  6. References.
  7. Sale invoice.
  8. Bank Statement.

You can check the status of your TIN application. Read on to obtain a better understanding of the situation.

How to Verify the TIN Application Status?

You can check the status of your TIN application by visiting the NSDL website. You can select the application type and enter the 15-digit unique acknowledgement number through the portal. This number is available three days after you apply.

You can also call the TIN call centre at 020-27218080. You can also send an SMS to 57575 with the phrase ‘NSDLPAN’ and a 15-digit acknowledgement number. This will assist you in determining the status of the TIN application.

List of State Codes for First Two Digits of TIN Numbers

Here are the state codes so you can easily find TIN with the first two digits of these state codes.

Sr.No. State Name State Code TIN – First two digits 
Andhra Pradesh AP 28 
Andaman and Nicobar Islands AN 35 
Assam AS 18 
Andhra Pradesh (New) AD 37 
Arunachal Pradesh AR 12 
Bihar BH 10 
Chattisgarh CT 22 
Chandigarh CH 04 
Delhi DL 07 
10 Daman and Diu DD 25 
11 Dadra and Nagar Haveli DN 26 
12 Gujarat GJ 24 
13 Goa GA 30 
14 Himachal Pradesh HP 02 
15 Haryana HR 06 
16 Jharkhand JH 20 
17 Jammu and Kashmir JK 01 
18 Kerala KL 32 
19 Karnataka KA 29 
20 Lakshadweep Islands LD 31 
21 Manipur MN 14 
22 Madhya Pradesh MP 23 
23 Maharashtra MH 27 
24 Nagaland NL 13 
25 Mizoram MI 15 
26 Meghalaya ME 17 
27 Odisha OR 21 
28 Punjab PB 03 
29 Pondicherry PY 34 
30 Rajasthan RJ 08 
31 Sikkim SK 11 
32 Tripura TR 16 
33 Tamil Nadu TN 33 
34 Telangana TS 36 
35 Uttarakhand UT 05 
36 Uttar Pradesh UP 09 
37 West Bengal WB 19 

The details about the tax identification number in India will provide you with a clear insight into what is tax identification number in India is for individuals. Once you gain factual information and understand the value-adding details of the TIN, you will then be ready to share the knowledge.

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Difference Between GST and TAN

GSTINTAN
Before the implementation of GSTIN, all the dealers who had registered under the VAT law of the state were assigned a Tax Identification Number (TIN) by the respective state. TAN is required for any individual or entity who is required to deduct tax at source when making payments such as rent, salary, etc.
GSTIN is the acronym for “Goods and Services Tax Identification Number”.TAN is the acronym for “Tax Deduction and Collection Account Number”.
This is a 15-digit number that is assigned state-wise to each taxpayer.It is a 10-digit alphanumeric number. 

Frequently Asked Questions (FAQs)

What is the full form of the TIN Number?

The full form of the TIN is “Taxpayer Identification Number.” It is a unique identification number assigned to every individual or business entity that is registered under the Value Added Tax (VAT) system. The government uses this number to track the transactions of the taxpayer and ensure compliance with tax laws.

Is TIN the same as PAN in India?

No, a TIN does not equal a PAN number. A permanent Account Number (PAN) is an identifying number provided to people who pay taxes, whereas a TIN is an identification number assigned to businesses to track their transactions.

How can I get my tax identification number?

You can apply for a tax identification number directly with the relevant government agency. For example, the Social Security Administration can provide you with a Social Security number. Whether you require an Individual Taxpayer Identification Number (ITIN) or a Business Identification Number (BIN), you may be able to receive one directly from the Federal Revenue Service.

Do Indians have TIN?

If any business or person is involved in the sale or purchase of goods & services or any product in India is required to obtain a TIN.

Where can I find my tax identification number in India?

The Income Tax Department of India assigns a 10-digit alphanumeric code on your PAN card which is your unique tax identification number. You can also find your Tax Identification Number in India on your tax returns, tax challans, or any other communication received from the Income Tax Department.

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