In India, the Income Tax department of the Central Government assigns a 10-digit alphanumeric number known as the Tax Deduction and Collection Account Number (TAN) to individuals or entities responsible for collecting tax at source (TCS) or deducting tax at source (TDS). TAN plays a critical role in the country’s tax compliance system, and taxpayers must quote it on all TDS returns filed under Section 203A of the Income Tax Act of 1961.
TAN stands for Tax Deduction and Collection Account Number.
This number is unique to each person or organization responsible for TDS/TCS and helps track tax payments, filings, and documentation effectively.
The TAN is a 10-digit unique identifier that follows a specific structure:
For example:
The TAN is essential for various tax-related processes, such as:
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Failure to obtain or correctly quote TAN can lead to penalties under Section 272BB of the Income Tax Act:
There are two types of TAN applications:
You can apply for TAN via two methods: Online and Offline.
To check the status of your TAN application:
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If you’ve misplaced your TAN, follow these simple steps:
Although the Income Tax Department issues both TAN and PAN, each serves a different purpose:
| Parameter | TAN | PAN |
| Issued To | Tax Deductors/Collectors | Every taxpayer (individual, firm, etc.) |
| Purpose | TDS/TCS filing and payment | All financial transactions and returns |
| Form for Application | Form 49B | Form 49A (individual) / Form 49AA (foreigners) |
| Penalty for Non-Compliance | ₹10,000 | ₹10,000 for non-quotation |
The Tax Deduction and Collection Account Number (TAN) is crucial for tax compliance in India. It ensures smooth tax filing and payment processes for individuals or firms responsible for deducting or collecting taxes at source. Obtaining and quoting your TAN number correctly is essential for avoiding penalties and ensuring timely tax documentation.
If you’re a tax deductor or collector, ensure you apply for a TAN through the proper channels and keep it updated to avoid any legal complications.
TAN is used for filing TDS and TCS returns, making tax payments, and issuing tax certificates.
You can apply for TAN online via the NSDL-TIN website or offline by submitting Form 49B at a TIN-FC center.
Yes, TAN must be quoted when filing TDS/TCS returns, submitting certificates, and making tax payments.
If you fail to quote TAN or quote it incorrectly, a penalty of up to ₹10,000 can be imposed.
Yes, if there’s a mistake in your TAN, you can apply for correction through the NSDL-TIN website.
The fee for applying for a new TAN online is ₹55 + 18% GST.
TAN is for tax deductors/collectors, while PAN is required for all individuals and entities for financial transactions and tax returns.
Yes, you can search for your TAN using the Know Your TAN option on the official Income Tax Department website.
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