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In this article, we will discuss the major difference between TAN PAN DSC DIN in detail:
Tax deduction and collection account number (TAN)
TAN or Tax deduction and collection account number is a ten digit unique number given to those persons who deduct tax at source or TDS. It is basically for those persons who collect or deduct tax on various goods. For every person deducting tax at the source, it is necessary to obtain this number. Once the number is obtained various returns can be filed on a quarterly basis. The starting number of the TAN is alphabets which are further followed by numerical but gets ended again with alphabets.
Permanent Account Number
PAN or permanent account number is a number having ten numeric digits. It is issued to those individuals who are earning some income or paying tax. It is issued by income tax department to individuals. For company incorporation, a PAN number must be present with the individual. It is mandatory to acquire this number whether you are starting a company or an LLP. It is very common nowadays as it is required for a number of transactions such as obtaining a loan from a bank or purchasing a property etc. It is issued by the income tax department to keep an eye on the individual’s transactions whether it has any component which is taxable. It can also issue to foreign nationals. It cannot be shown as the proof of Indian nationality. The number is valid throughout the life of the person.
Digital Signature Certificate
It is a type of certificate which is given to all the directors and which serves as a proof of identity. It is used in online transactions or electronic electronics which is for the authorization. It is very useful for the purposes of employees provident fund, income tax department, extenders etc. There are different classes of the digital signature certificate such as class 1, class 2 and class 3. These different kinds of classes are used for different kinds of purposes. For example, class 2 is used for income tax return filing or at the time of company registration.
Director Identification Number
Under Section 159 of the companies act, it is required for every director to obtain an identification number from central government. Therefore before submitting the documents for incorporation, every director should have DIN. If any director doesn’t have DIN they cannot apply for incorporation. It can be obtained by an individual of any nationality. It can be obtained by submitting address proof and identity proof. In the case of an LLP designated partnership identification number is given.
