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A Taxpayer Identification Number (TIN) is a unique reference number assigned by tax authorities to individuals and entities to track their tax obligations. In India, this often refers to the Permanent Account Number (PAN), while in other countries, similar identifiers exist—such as the US Individual Taxpayer Identification Number (ITIN). Investors and taxpayers need to know when and how to obtain and use TINs to ensure compliance and smooth transactions in both domestic and international contexts.
TINs serve to help tax departments link financial records, filings, and transactions to specific individuals or organisations. In India, the PAN acts as the TIN under the Income Tax Act. Overseas, countries may issue TINs for residents and non-residents—such as the US ITIN, Canadian SIN, or EU TINs—to facilitate international tax compliance.
The terminology can vary:
India uses PAN
United States issues ITIN for individuals not eligible for SSN
European Union and Canada may issue region-specific TINs or SINs
Each identifier is valid only within its issuing jurisdiction but often used jointly for international tax reporting, such as under FATCA or CRS.
TINs are often mandatory when:
Filing income tax returns
Investing in securities (stocks, F&O, mutual funds)
Opening bank or Demat accounts
Making foreign investments
Complying with regulatory requirements like KYC or FATCA reporting
Having a valid TIN ensures accurate tracking and prevents regulatory delays or penalisation.
Different countries follow different formats that include letters and digits.
India (PAN): Five letters, four digits, one letter (e.g., ABCPF1234G)
United States (ITIN): Nine digits, starting with 9, following the pattern 9XX-XX-XXXX
EU TINs: Vary by country. E.g., Germany uses 11 digits, Spain uses a mix of letters and numbers
Every format is defined by tax authorities and must be used precisely to ensure system validation.
TINs serve multiple key functions for both authorities and taxpayers.
TINs help:
Uniquely identify taxpayers
Link data from banks and financial institutions
Detect non-filing and tax evasion
Prevent duplicate identities
TINs allow easier interaction with financial systems:
Opening accounts
Filing tax returns
Availing tax benefits and claiming refunds
The process varies by jurisdiction; here’s how it works in India and the US.
PAN (India): Resident individuals, foreign nationals investing in India
ITIN (US): Non-residents or residents needing a taxpayer ID but not eligible for SSN
PAN: Proof of identity (Aadhaar, passport), proof of address (utility bill, passport), passport-sized photo
ITIN: Passport (primary), plus secondary ID if passport lacks photo (e.g., driver’s licence)
Follow this guide when applying for a PAN:
Obtain Form 49A (individual) or 49AA (foreigners)
Provide personal details and attach valid documents
Submit at NSDL or UTIITSL centres or apply online
Pay ₹110 (regular) or ₹1,020 (foreign applicants)
Receive acknowledgement with 15-character number (eSIIN)
PAN delivered by post within 15–20 working days
Non-residents follow these steps for ITIN:
Obtain Form W-7
Fill in personal details and reason for ITIN
Attach passport and certified supporting documents
Submit through IRS-authorised agent or by mail
You may need to update your TIN details in certain cases.
For PAN: Any change in address or name requires Form 49A or 49AA for update
Foreign TINs may need embassy or taxing authority adjustments
Always keep your TIN linked to your Aadhaar (India), to prevent blocking or deactivation.
Here are some figures reflecting TIN adoption in India:
FY |
No. of PAN Holders |
PANs Issued This Year |
|---|---|---|
2020–21 |
77 Crores |
3 Crores |
2021–22 |
83 Crores |
6 Crores |
2022–23 |
92 Crores |
9 Crores |
(Figures from Department of Revenue, Government of India; PAN Update portal)
A TIN—such as PAN or ITIN—serves as a vital identifier for individuals, businesses, and investors to engage legally in financial activities. Its correct format, timely update, and proper use help avoid compliance issues while enabling smooth processes from account-opening to tax filing.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
PAN stands for Permanent Account Number, a ten-character unique identifier issued by the Indian Income Tax Department primarily for tax filing and KYC purposes.
Yes. Non-resident Indians or foreign nationals investing in India must apply using Form 49AA with a higher application fee.
PAN is used in India, whereas ITIN is issued by the US IRS for those ineligible for Social Security Numbers, primarily for tax reporting.
Yes. PAN is mandatory to open bank accounts, Demat accounts and to transact in securities which are taxable in India.
To update a PAN due to changes in address or name, submit a correction form (typically Form 49A) with supporting documents to NSDL or UTIITSL.
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