What is TAN Number ?
Tax Deduction and Collection Account Number (TAN) is a 10 digit number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961
TAN stands for Tax Deduction and Collection Account Number. It is a unique 10 digit alpha numeric number allotted by the Income Tax Department (ITD) of India. Compulsorily required to all the persons who are accountable for tax deducted at source (TDS) or tax collect at source (TCS) on behalf of the income tax department.
TAN number consists of 10 digits, starting from four alphabets followed by five numbers ended with one alphabet. Example of TAN number is :- RGPO 02811 K
The deductor is required to quote TAN number in every correspondence related to TDS or TCS. Failing to apply for TAN or not quoting the same on the specified documents attracts a penalty of Rs 10,000. 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.