What is the full form of TIN?

What is TIN?

The full form is Tax Identification Number. This number consists of 11 digits and Internal Revenue Service (IRS) uses it as a tracking number. TIN is used to get all the necessary information related to tax filed with the IRS. The number is used for the identification of individuals, organizations, and other entities. Individuals or organizations that file annual tax returns need to have this number. Besides filing tax, TIN can also be used for the following −

For credit

A social security number is required by banks and other lenders on the applications for credit. Credit bureaus receive this information so as to identify whether the loan application is being filled by the right person. The credit history of applicants can also be checked through the TIN.

For employment

Employers use the TIN from the individuals who apply for a job. An issuing agency verifies the number of the employee.

For state agencies

Businesses use TIN to file taxes with other tax agencies.

Types of TIN

TIN is of many types and we will discuss them in detail.

SSN

SSN stands for Social Security Number. SSN is a TIN that is used in the United States for income tax purposes, individual taxpayer, and social security. Individuals are identified for social security and tax payments through this number. Social Security Administration issues SSNs to permanent residents, US citizens, and temporary residents.

ITIN

ITIN stands for Individual Taxpayer Identification Number. ITIN is also used in the United States by individuals who do not have an SSN but have to pay taxes. It is given to non-resident aliens, dependents of US citizens, and individuals who have to file taxes for many other reasons. Individuals have to submit Form W-7 to obtain ITIN.

NIN

NIN can be expanded as National Insurance Number. United Kingdom uses NIN for the individuals who have the obligation of paying tax. It is also used for social security purposes. Insurance contributions of an individual can be obtained through this number. When a UK citizen reaches the age of 16, he or she receives the NIN automatically.

PAN

PAN can be expanded to Permanent Account Number. It is used in India for tax payments by businesses and individuals. PAN is used in India for financial transactions and tax payments. Income Tax Department of India issues this card to individuals and businesses.

PPS Number

PPS Number stands for Personal Public Service Number. This is a number which is used in Ireland for tax and social welfare purposes. The Department of Social Protection issues the PPS number to the Ireland residents.

TFN

TFN stands for Tax File Number and is used in Australia and is used for tax and government services. Companies and individuals can use this number to get benefits provided by the government and tax obligations. Individuals can apply for TFN to the Australian Taxation Office.

How to apply for TIN?

You can apply for a TIN offline or online. TIN is issued by the Commercial Tax Department of any state. TIN is a compulsory requirement when VAT is submitted. This number is delivered automatically at the time of registration. The state government issues TIN and the process of getting one is different for every state.

Documents needed to apply for TIN

If you are willing to apply for TIN, you need to carry the documents listed below −

• Identity proof

• Address proof

• Proof of address of the business

• PAN Card

• Security or reference

Many states may ask for a few other documents to apply for TIN.

Difference between TAN and TIN

TAN and TIN have a few differences which can be found in the table below −

TAN	TIN
Income Tax Department of India issues TAN	Commercial Tax Department of a state of an applicant issues TIN
Tax deduction and collection are done at the source	VAT-related activities in India are tracked
Form 498 has to be filled	Form varies as per the states
The code consists of alphabets and numbers and the total number of characters is 10	The total number of characters is 11 and consists of digits only

Uses of TIN

TIN has many uses and some of them are listed below −

• Individuals and businesses can use TIN for tax purposes when they have to file tax returns

• TIN can be used for the payment of tax as it makes sure that the tax payment has been done properly

• TIN can be used by financial, institutions and banks to open new accounts

• TIN is required for the processing of loan applications

• Real estate transactions also require TIN

Disadvantages of TIN

TIN has a few disadvantages and some of them are listed below −

• TIN is used publically and can lead to identity theft

• Individuals and organizations apply for TIN and provide the details themselves which can be false and inaccurate

• Typographical mistakes can lead to difficulty in tax payment

• TIN format in every country is different which can become problematic in international transactions

• Application process for TIN sometimes becomes difficult

Conclusion

TIN can be expanded to Tax Identification Number. It is also known as Taxpayer Identification Number. It has different names in various countries and is used for the collection of tax and filing of tax returns. In India, it is issued by the Commercial Tax Department of a state.

FAQs

FAQ 1: What is the full form of TIN?

Ans: TIN can be expanded to Tax Identification Number.

FAQ 2: Can TIN be interchanged with VAT?

Ans: Yes! In the case of intra-state transactions, TIN and VAT can be used interchangeably.

FAQ 3: Is there any specified procedure to apply for TIN?

Ans: No! There is no specified procedure as applying for TIN is different in various states.

FAQ 4: What is the length of TIN?

Ans: TIN consists of 11 digits out of which the first two digits represent the state code where a person has applied