KNOW ABOUT TAN BEFORE DEDUCTING TDS


(Last Updated On: November 19, 2019)


What is the full form of TAN?

The full form of TAN is Tax Deduction or Collection Account Number. It is  a 10 digit alphanumeric number which is required in case one becomes liable to either 

  • Deduct tax or 
  • Collect tax 

at the time of making payment to another person (i.e. liable to deduct TDS or collect TCS).

 

What is the significance of obtaining TAN no.?

As per the tax laws of our country a person deducting TDS is required to deposit it into the treasury within specified period along with a return specifying the details as required by the government. Therefore, TAN acts as a unique identification number in all correspondence with the department. This also enables the government to credit the tax receipt and give credit to the deductee (person whose TDS was deducted). This credit is reflected in the 26AS i.e. the tax credit statement.

 

How a TAN no. looks like?

TAN is a 10 digit alphanumeric number. Structure of TAN is as follows: ABC D 12345 X. So first 4 characters are alphabets followed by 5 digits and then 1 alphabet in the end. First 3 alphabets of TAN no. represent the city where TAN has been allotted, 4th character of the TAN no. represent the initial letter of the name of a person. All 5 digits and the last alphabet are automated characters generated by system.

format-of-tan

Are there any penalties if I don’t mention a TAN in my TDS return?

There are penalties in income tax act for both non-mentioning the TAN or mentioning incorrect TAN. Penalty of Rs. 10,000 is imposed in case of one does not mention TAN or mention incorrect TAN no. in TDS return.

 

 


FAQ


What is the TAN full form in English?

The full form of TAN is Tax Deduction or Collection Account Number. It is required by specified persons who wants to deduct of collect tax as per the provisions of the income tax act in India. 


What is the TIN full form?

TIN is known as Tax Identification Number, it was issued to taxpayers registered under VAT. TIN is a 15 digit number. 


What is the TAN full form in Hindi?

टैक्स डिडक्शन एंड कलेक्शन अकाउंट नंबर (TAN) को हिंदी मे टैक्स कटौती खाता संख्या कहा जाता है|


What is the TAN number format?

TAN is a 10 digit alphanumeric number, where

  • First 4 digits are Alphabets

Out of these 4 digits the first 3 refer to the place i.e. city or state where the TAN number was issued. 4th Digit is the first letter of the name of the TAN holder

  • Next 5 digits are numbers
  • Last 1 Digit is again alphabet

Which is the TAN application form?

An application of obtaining TAN can be made online or offline in Form 49B.


What is the procedure of applying for TAN no.?

One can apply for TAN online at NSDL-TIN Website (https://tin.tin.nsdl.com/tan/index.html).

Still facing problems in applying for TAN no.? Don’t worry; mail us your details and we shall apply for TAN on your behalf.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.