In India, a Tax Deduction and Collection Account Number (TAN) is a 10-digit alpha-numeric number issued by the Income Tax Department to the persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be accepted if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of ₹10,000
Documents Required:
- Pan Card
- Aadhar Card
Who can apply for TAN?
- If one entity is paying salary or a commission to another, the entity must have a TAN. This might include:
- Individuals
- Hindu Undivided Family (HUF)
- Company and Firms
- Central or the state government
- Sole proprietor
- Associations of persons
- Trusts