What is TAN? | What is TAN Number? All You Need to Know

What is TAN ?

TAN stands for Tax Deduction and Collection Account Number. It is a unique 10 digit alphanumeric number allotted by the Income Tax Department (ITD) of India. TAN number to be obtained by all persons who are responsible for deducting or collecting the tax. It is compulsory to quote TAN in TDS / TCS return (including any e-TDS / TCS return), any TDS / TCS payment challan and TDS/TCS certificates.

What is TAN Number  and structure 

TAN number TAN number consists of 10 digits, starting from four alphabets followed by five numbers ending with one alphabet. An example of a TAN number is RXOY 02811 K.

What happens if the TAN is not quoted ?

Who needs to apply for TAN? People who are required to deduct tax at source or collect tax at source on.

On behalf of the Income Tax Department are required to apply for a TAN and obtain it.

Law requirement The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. This section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Failure to apply for TAN or comply with any of the other provisions of the section attracts a penalty of Rs. 10,000.

How to apply for TAN? You can apply for TAN in two ways, Offline and Online. Online applications for TAN can be made from the NSDL TIN website. In offline mode an application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centers meant for receipt of e-TDS returns. The application form can be downloaded from the website of the Income Tax Department.

Documents required No documents are required to be filed with the application for allotment of TAN.When you are applying online, the acknowledgment which is generated after filling up the form will be required to send to NSDL.

TAN and PAN

PARAMETERSPANTAN
Issued byThe Income Tax DepartmentThe Income Tax Department
REQUIRED BYEvery TaxpayersAll the individuals and firms who pays tax at source
GOVERNING LAWS:Section 139 of Income Tax Act, 1961.Section 203A of the Income Tax Act, 1961.
IDENTIFYING CODE: 10 Digit Alphanumeric Code.10 Digit Alphanumeric Code.
PRIMARY PURPOSE:It acts as all-in-one code and it gives permission for all financial transactions.It makes TDS procedure easier.
NECESSARY FORMS:For citizens of India – Form 49A.For foreigners – Form 49AA. Form 49B.
MAXIMUM NUMBER THAT CAN BE HELD:One.One.

 

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Nowadays, there are many investment options available in India. Unlike a few years ago, when FDs and equities were the popular choices among people, various new-age investment options like P2P lending have emerged. The best part about these investments is that they have the ability to balance the risk and returns, which most investors find hard to achieve. 

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*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.


LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.

About

Investment

The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.

 

*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

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