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What is a TAN Number?

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TAN is Tax deduction and collection account number. TAN itself is a number so no point in writing as TAN Number.However generally people call it ‘TAN Number. So what is a Tax deduction and collection account number?.

As it’s name says Tax deduction and collection Account Number is an account number allotted by Income tax department. As per section 203 A of income tax it is mandatory to have Tax deduction number for all persons who are responsible for the deduction of TDS under Income tax Act and they should quote TAN number on all TDS returns, TDS Payment challans,TDS Certificates.Section 272BB of income tax impose a penalty up to 10000 may be charged in case of failure  to apply for  a Tax deduction  and collection Account Number or failed to quote or Quoted incorrect TAN.

There is an exemption for this rule. A person who is responsible for the deduction under section 194IA can use PAN instead if TAN. This is mandatory for all who are liable to collect tax at source ( TCS).

Structure of TAN

It is a 10 digit alpha numeric number. The first four characters are letters then next 5 are digits and the last one is again a letter. Usually a TAN number appears like BLRH12345Z

  • The first three letters represents the city or state where TAN was issued.
  • The fourth character represents the first letter of the deductor. A deductor may be a company,person or a firm.
  • Next 5 digits are the system generated serial numbers.
  • The last charector is also a system generated letter which is called check digit.
Structure of TAN
Structure Of TAN

Who can apply for a TAN ?

As per income tax ,TAN is allotted for a Company and it’s branch or divisions,Individuals,Hindu Undivided family ( HUF),Partnership firms and it’s branches. Limited liability partnership ( LLP),Association of persons ( AOP), Body of individuals ( BOI),Trusts, Artificial judicial persons can apply for tax deduction number in India.

How to get a Tax Deduction  and collection Account Number ?

Tax deduction number  is issued by authority of Income tax, However you should apply through NSDL Website with Form 49B. After submitting the application you will get a 14 digit acknowledgment number.The application Fee is 55 + 18 % GST. After making payment the applicant will be able to print the acknowledgment and shall be send to NSDL pune in the prescribed address.

You will get a detailed direction of application here.

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