What is the full form of TAN?
The TAN full form is Tax Deduction and Collection Account Number. Under the Income Tax Act of 1961, the Indian Income Tax Department issues TANs to all individuals and businesses authorized to pay or deduct tax on cash payments. According to Section 203A of the Income Tax Department, the TAN must be included on all TDS forms and Challans when paying tax.
- A taxpayer is unable to pay taxes without a TAN.
- Upon receipt of the tax amount, the IT division verifies the amount, and if by mistake the individual has paid more tax, the amount is refunded directly into his account.
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Structure of TAN
- TAN is a 10-digit alphanumeric number.
- The first three letters of the TAN represent a jurisdiction code, the fourth letter represents the taxpayer’s initials, and the next five digits and the final digit are an alphabet, which distinguishes the TAN.
Where and how to Apply for a TAN?
- To apply for a TAN, the taxpayer must submit Form No. 49B.
- Individuals must then upload all needed papers, such as evidence of identity and address verification, to the website of the NSDL or Tax Information Network Facilitation Center.
- Upon receiving the TAN application form, the NSDL division verifies the information and transfers the form to the IT division.
