The Full form of TAN is Tax Deduction and Collection Account Number. It is basically a 10 digit alphanumeric number which is issued by the Income Tax Department. It is necessary to obtain TAN for those who are responsible for TDS (Tax deducted at source) or who is responsible to TCS (Tax collected at source). With this article, you will get to know your TAN in a brief. Structure of TAN Every digit of Tax Deduction and collection Account number denotes different aspects. As we discussed above, TAN is an alphanumeric number in which the first four digits are alphabets, the next five digits are numeric and there is an alphabet at the last. Look at the picture given below and know your TAN more clearly: Format of TAN In the above picture, the first three alphabets of tax deduction/collection account number represent the code of jurisdiction, whereas the fourth alphabet denotes the TAN holder’s name with the initial letter of the name. Point to be remembered here is, the TAN holder can be an individual, firm, company etc. The last alphabet of the TAN number is a random one. For Example, the TAN number of an individual is RXOY 02811 K. Law requirements As per the provisions of section 203A of the Income Tax Act, 1961, mentioning the TAN number in all the documents is mandatory. In case, TAN is not quoted then the payments of TDS/TCS will not be accepted by banks. Even, in case of TDS refund, TAN must be quoted. Following are the documents on which TAN must be quoted: TCS Statements TDS Statements Annual Information Return TDS/TCS Certificates TDS/TCS payment Challan Other prescribed documents It has been mentioned under the same section that the one who deducts or collects tax at source needs to apply for the allotment of Tax Deduction/Collection Number. In case of failure, Rs. 10000 will be imposed as a penalty. To know your TAN more read here: Types of TDS certificate Documents To be Submitted Along With TAN Application If you are applying for a new TAN through online mode then the only thing you need to submit is the signed acknowledgment slip if they apply for a new TAN through online mode.
