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TAN: Tax Deduction and Collection Account Number

Updated on: 04 May, 2022 12:37 PM

Meaning, Application & Registration Process, Know your TAN in FY 2021-22 AY 2022-23
TAN or Tax Deduction and Collection Account Number is a 10 digit alphanumeric number required to be obtained by all the persons who are responsible for deducting or collecting tax at source. It is mandatory to quote TAN in all TDS or TCS return forms, challans and certificates. TAN is required for all the assesses required to deduct TDS and collect TCS (Tax Deducted at Source/ Tax collected at source ) on transactions. Also, we are going to cover the various terms which are used in the business.

What is the meaning of 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 is required to be obtained by all the persons who are responsible for deducting or collecting the tax at the source.
  • It is compulsory to quote TAN in TDS/TCS return, all TDS/TCS payment challan and TDS/TCS certificates.

Click to Read More.. (Please add link)

Who is required to apply for the TAN?

Section 203A of the Income Tax Act requires all the persons who deduct or collect tax at source to apply for the allotment of TAN. Non-furnishing of TAN at required places can lead to a penalty of Rs 10,000.

As per the Income Tax Act, the following persons shall be eligible for allotment of a TAN:

  • Company
  • Individual (Sole Proprietorship)
  • Hindu Undivided Family (HUF)
  • Firm
  • Association of Persons/ Body of Individuals/ Association of Persons (Trusts)/ Artificial Juridical Person
  • Central Government / State Government / Local Authorities / Statutory Bodies/ Autonomous Bodies.

What is the use of the TAN number?

A. TAN number is very important for those deducting tax at source and it needs to be quoted both in TDS or TCS returns, challans, statements, etc.

How to know your TAN online?

If you don’t remember the TAN number already allotted, you can know it online by using a facility called ‘Know your TAN’. This facility is provided by the income tax department on its official website. To know the step by step procedure to apply for the TAN Click Here.

How to apply for TAN?

We have already understood the importance of having a TAN number. But when it come to TAN application the user normally gets confused about a lot of things such as

  • What is the procedure?
  • What are the documents required?
  • Can a TAN application form be filled online?
  • What are the charges?
  • etc

To assist you with all such queries and detailed instruction on online and offline TAN applications we have compiled a guide for you. Read More.. (please add link)

How to register TAN?

TAN registration is required by a deductor or collector of taxes, a taxpayer and PAO for viewing the status of challans, submitting online TDS returns, downloading important forms like, Form 16/16A/16B, to make requests and avail the other TDS administrative services online. The registration procedure for each of these categories i.e. deductor, taxpayer and PAO has been described in detail here. (please add link)

What are the different terms related to a business?

While running a business there are several terms which you need to come across being an integral part of the business framework. Here we take each one of it one by one.

CIN - Corporate Identification Number

It is a 21 digit alphanumeric unique number allotted to companies registered in India. CIN is also known as

  • Corporate Identity Number or
  • Company Identification Number

Company Identification Number is often substituted with CIN (Challan Identification Number).

TIN - Taxpayer Identification Number

Taxpayer Identification Number or Tax Identification Number (TIN) is an 11 digit number. It is required to be taken by dealers registered under VAT. It is also termed as VAT or Sales Tax Number. TIN is issued by the Commercial Tax Department of the respective state.

PAN - Permanent Account Number

It is a 10-digit alphanumeric number that is issued by the Income Tax Department. The application can be made in form 49A by the resident Indians. The fee charged is Rs 107/- presently for Indian Residents and Rs 989 for NRI.

TAN - Tax Deduction and Collection Account Number

Every entity that is deducting or collecting taxes i.e. TDS or TCS needs to have this 10 digits alphanumeric number issued by the income tax department. The application for obtaining the same can be made in Form 49B. The fee is Rs 55+taxes.

VAT - Value Added Tax

It is an indirect tax that has been majorly subsumed in GST. It is levied on the added on different stages of the supply chain. The credit of VAT paid on sales can be claimed as a credit against vat payable on purchases.

GST - Goods and Services Tax

Goods and Services Tax (GST) is a destination-based consumption tax, that was introduced as a one nation one tax in July 2017. It has subsumed almost all major indirect taxes in India. The common GST rates prevalent are

  • 0%,
  • 5%,
  • 12%,
  • 18% and
  • 28%
  • GSTIN - Goods and Services Tax Identification Number
  • GSTIN or GST Identification Number is a 15 digit alphanumeric number allotted to those registered under the GST Act. The application can be made online.

GSTN - Goods and Services Tax Network

Goods and Service Tax Network is a non-profit organisation. It is an IT platform that serves the needs of various stakeholders like government, taxpayer etc. tax authorities can track each and every record and financial transaction through this portal.

TDS - Tax Deducted at Source

TDS or Tax Deducted at Source is a method of direct tax deduction. The person deducting taxes is known as deductor and the person whose tax is being deducted is known as deductee. It is called at the source deduction because the final income received in the hands of the earner is net of taxes and tax has already been adjusted from the same. As Per the income tax act TDS is deducted on salary income, interest, commission etc. The provisions of TDS are also applicable in the new indirect taxation regime of the GST.

TCS - Tax Collected at Source

Under the provisions of income tax India, the seller is responsible to collect tax from the buyer on certain specified commodities which is known as TCS. The provisions of GST extends both to income tax and GST in India.

DSC - Digital Signature Certificates

It is used to sign the documents electronically. Now attaching DSC is mandatory for various government agencies and legal compliances. It gives the ease to submit the details real time with less cost and effort and helps in ensuring the integrity of the authentication.

DIN - Director Identification Number

Any person holding a post of director is required to obtain the DIN of Director Identification Number in India.As per the provisions of the companies ACt it is mandatory for directors of the company to hold such number and quote it while submitting all relevant documents. Nowadays, DINss are also referred to as Document Identification Number which is the unique number of any order or communications made by the income tax or GST department to the taxpayer.

Frequently Asked Questions

Q- Who allots TAN?

The Income-tax department allots TAN to all the persons who are required to deduct tax at source(TDS) or who are required to collect tax at source(TCS).

Q- Can PAN be quoted in place of TAN?

A PAN can never be quoted in place of TAN under any circumstances as both serve different purposes.

Q- What are the modes which are available for payment of fees?

The payment fees can be processed by the following modes:

  • Demand draft
  • Cheque
  • Credit card/Debit card
  • Net banking
  • Cash ( if offline form is submitted at TIN FC )

Q- Does the person need to pay for availing of a TAN?

Yes, presently an amount of Rs 65 is required to be paid for availing a TAN.

Q- How to find the TAN number of a company by its name?

Go to Know Your TAN facility on the income income tax efiling website. In the TAN search column select name and the next column asking for the category of deductor select - company /firm /AOP /BOI /AJP /AOP (trust) and Branches and enter state, name of deductor- , mobile no., and click on “Continue” button.

Q- How to find out TAN number by using PAN number?

No, it is not possible to search TAN by using PAN.

Q- How is TAN different from PAN?

TAN is a unique identification number that is allotted to persons who are deducting or collecting tax at source. PAN is a unique number allotted to assessees like individuals, companies etc. for financial transactions, income tax returns etc.

Q- Is it mandatory to fill the TAN section on TDS/TCS/ AIR slips?

Yes, it is mandatory to mention the TAN number on these documents otherwise the request will not be accepted and documents would return.

Q- How can I get my TAN changed to a new format?

If your TAN is still in the old format then you can check for the new format online by entering old details or visiting the nearest TIN-FCs centre.

CA Abhishek Soni
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.



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