What is TAN in income tax? Key questions answered

Income Tax: Income Tax Return (ITR) filing season is about to start, and this is the time when taxpayers, especially new taxpayers, have many questions on their minds. One of the questions is — what is TAN or Tax Deduction and Collection Account Number and why is it necessary for an individual to have it while deducting tax deducted at source (TDS). Let’s have a quick glance at what is TAN, who uses it and why is it necessary.

Income Tax: What is TAN? 

TAN, or Tax Deduction and Collection Account Number, is a ten-digit alpha-numeric number that must be obtained by individuals who are in charge of deducting or collecting taxes. Under Section 203A of the Income Tax Act of 1961, it is necessary that all TDS statements include the Tax Deduction Account Number (TAN) assigned by the Income Tax Department (ITD).

Income Tax: Who should have TAN?

​​​​​​​Every person liable to deduct tax at source or collect tax at source is required to obtain TAN. It is mandatory to quote TAN in all TCS or TDS transactions, including any e-TCS/TDS return, TDS/TCS payment challan and TDS/TCS certificates.

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Income Tax: How to apply for TAN?

Individuals can apply for TAN number online as well as offline.

-For offline application, one should file Form 49B (Form of application for allotment of tax deduction and collection account number) in duplicate and submit it to any TIN Facilitation Centres (TIN-FC). Addresses of TIN-FCs are available at the NSDL-TIN website (https://www.tin-nsdl.com).

-For online application, one should visit the NSDL-TIN website.

Addresses of the TIN FC are available at www.incometaxindia.gov.in or https://www.tin-nsdl.com.

Currently, the fee for filing the TAN application is Rs.55/- + GST as applicable (the application fees may change from time to time).

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