What is TAN? TAN vs PAN

Aug 2, 2022

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.

TAN Number 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

PARAMETERS PAN TAN
Issued by The Income Tax Department The Income Tax Department
REQUIRED BY Every Taxpayers All 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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