What is TAN no.?
Tax Collection Account Number is a 10-digit alphanumeric identification number issued by the Income Tax Department in India. It is required to be quoted on all TDS/TCS return forms. All persons in charge of calculating or collecting tax at the source should keep track of their TANs.
TAN No. Meaning
TAN Meaning (Tax Deduction and Collection Account Number) is a 10-character alphanumeric identification number issued by the Income Tax Department of India to individuals or entities that are responsible for deducting tax at source (TDS) or collecting tax at source (TCS).
It is mandatory under Section 203A of the Income Tax Act, 1961, and must be quoted in all TDS/TCS returns, challans, and certificates.
How can one know the TAN number?
If you’re looking to find out your(Tax Deduction and Collection Account Number), there’s an easy way to do so online. Just visit www.incometaxindia.gov.in and follow the steps mentioned.
Check the TAN allotment certificate issued by the Income Tax Department
Look at TDS certificates issued or received
Log in to the Income Tax e-Filing portal → Profile Settings
Use the Know Your TAN facility on the income tax website
Is TAN Mandatory?
Yes, TAN is mandatory under Section 203A of the Income Tax Act, 1961. TAN is required by any person authorized to deduct or collect tax under Section 190-194 of the Income Tax Act, 1961. Failure to obtain TAN may invite penalties.
Who needs to apply for TAN?
People who must deduct tax from their income need to apply for a TAN. This includes individuals and organizations subject to income tax and value-added tax (VAT).
You can file your taxes easily and securely through our eFiling service when you have this number. You’ll also be able to download your Tax Certificate online, which will include all the information you need to file your return.
Documents required to apply for TAN
No other documents are needed to be filed with the application for allotment of TAN. However, the taxpayer should quote the number allotted to them in future correspondence with the Income Tax Department. Failure to apply for this number or any other portion of the section may result in a fine of ₹10,000. This component compels TAN to be reported in all TDS/TCS tax returns, payment challans, and certificates.
How to Find Your Tax Payment Details?
Tax payment information can be obtained from:
- Income Tax e-filing portal → My Account → View Form 26AS
- Form 16 from the employer
- These documents assist you in keeping a record of all the taxes that have been paid on your behalf.
Difference Between PAN and TAN
Below given is a full detailed difference between PAN and TAN-
| Basis | PAN | TAN |
|---|---|---|
| Full Form | Permanent Account Number | Tax Deduction and Collection Account Number |
| Issuing Authority | Income Tax Department of India | Income Tax Department of India |
| Who Needs It | All taxpayers (individuals, companies, firms, etc.) | Entities responsible for deducting or collecting tax at source |
| Purpose | Tracks income, tax payments, and financial transactions | Tracks TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) |
| Mandatory For | Filing income tax returns, opening bank accounts, investments | Deducting or collecting tax at source |
| Format | 10-character alphanumeric | 10-character alphanumeric |
| Legal Reference | Income Tax Act, 1961 | Section 203A of the Income Tax Act, 1961 |
| Usage Examples | Salary income, investments, bank transactions | TDS returns, TDS challans, TDS certificates |
Conclusion
Understanding TAN, along with PAN, TDS, and TCS, is essential for tax compliance in India. Whether you are an employer, business owner, or professional responsible for tax deduction or collection, having a valid TAN and using it correctly helps avoid penalties and ensures smooth compliance with income tax laws.
Staying informed and using official portals like the Income Tax e-filing website makes managing tax obligations easier and more transparent. Make it more easy with smooth payroll management.
FAQs (Frequently Asked Questions)
TAN is allocated to organization/ entity who are responsible for collecting taxed while PAN is assigned to the individuals who pay taxes.
Every entity who deducts tax at source or collect taxes are eligible for TAN number.
The primary purpose of the tax deduction and collection account number, commonly known as TAN, is related to deduction or collection of tax at source.
TDS certificates, or through login access on the Income Tax e-Filing website to check your own profile information.
One can apply for TAN either online through the NSDL website by submitting Form 49B or offline by visiting a TIN facilitation center.
