TAN (Tax Deduction and Collection Account Number)

A code mandatory for every Indian Citizen who has the responsibility of collecting as well as deducting taxes. Like the PAN, it is a 10 digit code containing both numbers and alphabets, the set of which are unique to the holder. It is issued by the Income Tax Department and made mandatory for all the services regarding tax deducted at source under the section 203A of the Income Tax Act of 1961. For those who have issued a TAN prior to the introduction of its revised structure, a search facility is available on the official website of the Indian Income Tax Department wherein the new TAN can easily be obtained. The application for this can be made easily through online and offline methods at any of the TIN-Facilitation Centres by submitting required forms physically.

The TAN is useful to the Indian government to collect the taxes on time and avoid tedious penalties- which are equally bothersome to the collector and payer. The tax deduction at source is a compulsion for certain industries such as proprietorship business, etc during payments of salary to the staff, fees of the hired contractors as well as payment of high amounts of rent exceeding Rs.1,80,000 annually. Thus as someone who isn’t a receiver of salary
but a payer who requires to deduct taxes- this is a mandatory tool and the PAN does not suffice for tax deduction as well as filing it. Once a TAN has been obtained, there is no need for renewal- it is permanent. It does not
however act as proof of identity in any way for the person that it is issued for. Penalties are applicable respectively for late filings of the deductions.


Download Word File Download PDF File