Tax Deduction and Collection Account Number

Indian tax code number

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In India, a Tax Deduction and Collection Account Number (TAN) is a 10 digit alpha-numeric number issued by the Income Tax Department to the persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961.

Significance

The Tax Deducted at Source (TDS) on payments made by assessees is deposited under the TAN to enable the assessees who have received the payments to claim the tax deducted in their income tax return.

ApplicationTAN is applied through "Form No. 49B" (prescribed under Indian Income Tax Law). A completed form can be submitted online at the NSDL website or at the "Tax Information Network Facilitation Center" (TIN-FC). These centers are established by NSDL, an appointed intermediary by the Central Government, across India.

TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be accepted if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of ₹10,000

No documents are required to be filed with the application for allotment of TAN. However, where the application is online, the acknowledgment (a PDF file) which is generated after filling up the form must be forwarded to NSDL. Detailed guidelines for the procedure are available at NSDL website. A TAN application should accompany a 'proof of identity' and a 'proof of address' (photocopies) of the deductor. In the case of online applications, these documents need to be sent over mail (post/courier) to NSDL - TAN Application division.

When NSDL receives the TAN application along with said documents (either through TIN FC / Online), the details are verified and then sent to the Income Tax Department. Once approved, the Department allocates a uniq8287448126

8287448126

and notifies the applicant through NSDL.

Structure and validation

TAN structure is as follows: RAJA99999B: First four characters are letters, next five are numerals, last character is a letter.
Each tax deductor is uniquely identified by a TAN.
The first three characters represent the city or state where the TAN was issued.
The fourth character represents first character of the name (company, firm, individual, etc) of the deductor.
And the next 5 characters are numerics.
And Last character is a letter.

Who can apply for TAN?

If one entity is paying salary or a commission to another, the entity must have a TAN. This might include:

Individuals
Hindu Undivided Family (HUF)
Company and Firms
Central or the state government
Sole proprietor
Associations of persons
Trusts

References

"Tax Information and Services > TAN/TDS". www.incometaxindia.gov.in. Retrieved 2021-07-24.
"Tax Deduction & Collection Account Number Tan | Coverfox". Coverfox Insurance. Retrieved 2021-07-24.

v t e Taxation in India
Taxes	Central Excise Duty Goods and Services Tax Income tax in India Securities Transaction Tax Service tax Value-added taxation
Bodies	CBDT Chairperson, Central Board of Direct Taxes Investigation Division of the Central Board of Direct Taxes Central Board of Excise and Customs Chairperson Central Board of Excise & Customs Income Tax Department Central Economic Intelligence Bureau Directorate of Revenue Intelligence Tax Administration Reform Commission
Legislations	Benami Transactions (Prohibition) Act, 1988 Expenditure Tax Act, 1987 Finance Act (India) Gift Tax Act, 1958 Interest Tax Act, 1974 The Income-tax Act, 1961 Wealth Tax Act, 1957
Schemes	Income declaration scheme, 2016 Pradhan Mantri Garib Kalyan Yojana Voluntary Disclosure of Income Scheme
Compliance	Income Tax Returns ITR-2 SUGAM ITR-4S Indian tax forms Tax Collected at Source Tax Deducted at Source Tax Deduction and Collection Account Number
Notable cases	Cairn Energy and Government of India dispute

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