The full form of TAN is Tax Deduction and Collection Account Number. All individuals and businesses that the Indian Income Tax Department permits to pay or deduct tax on their cash payments are given TANs under the terms of the Income Tax Act 1961. According to Section 203A of the Income Tax Department, the TAN must be included in all TDS returns and Challans when making a tax payment.
- A taxpayer can’t pay the tax without having a TAN.
- The IT division confirms the amount upon receipt of the tax amount. By accident, if the individual has paid an additional tax, then the amount will be returned directly to his account.
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Formate of TAN number
- TAN is an alphanumeric number of 10 digits.
- The first three TAN letters reflect a city, the fourth letter is the taxpayer’s initials, and the next five digits and the last character makes the TAN different.
How and where to Apply for TAN
- The taxpayer must fill out Form No. 49B to apply for a TAN.
- Individuals must then add all of the documents required, including proof of identity and address verification, and send it to the NSDL or Tax Information Network Facilitation Center website.
- The NSDL division confirms the information upon obtaining the TAN application form and transfers the application form to the IT division.