TAN: Tax Deduction Account Number

Income Tax

TAN

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting 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.

Format of TAN:

Procedure for getting TAN :

It can be obtained by filing an application in form no. 49B to any of the TIN facilitation Centres (TIN-FC) namely NSDL. Addresses of the TIN-FC as well as the forms can be downloaded from the website www.incometaxindia.gov.in or http://tin-nsdl.com. The fee for processing TAN application is Rs.  60/-. This can be paid by:

?   Cash at TIN-FC counter

?   Demand draft or

?   Cheque or

?   Credit card

The demand draft/ cheque shall be in favour of ‘NSDL-TIN’.

TAN number will be communicated to the deductor by NSDL.

 

What is the importance of TAN for a common tax payer having PAN?

The Tax deducted against each PAN has to be reflected under the deductee’s TAN in the National Data of Income Tax deduction & collection. Also Known as Form 26AS. In case your Tax was deducted by your employer or bank against FD interest or anywhere else but the same is not available in Form 26 AS or there is a mismatch of TAN in your Form 26AS, the Income Tax department ‘ll treat it as non payment of Tax & ‘ll issue demand notice for collection of Tax.

 To know the impact of wrong TAN, please read this.

Please feel free to discuss your queries on TAN as well as PAN.

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Lots of approximations and assumptions have been made while developing the calculators.

Please make your own calculations before making any financial decision.