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about TAN

RAKESH (Almost CA) (2199 Points)

07 November 2008

hi wat is tan? wat is the use of the TAN and wat is the abbreviation of TAN

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7 Replies

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 07 November 2008

It is tax deduction account number. It has to be quoted while filing TDS return with the department.

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Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 07 November 2008

Dear All

What is TAN?
Ans. TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in all TDS/TCS returns (including e-TDS/TCS return), TDS/TCS payment challans and TDS/TCS certificates.

Special Note: First 3 Alphabets of TAN is jurisdiction code 4^th alphabet is initial of name of Company/Firm/Individual etc.

Why is it necessary to have TAN?
Ans. The provisions of Section 203A of the Income-tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN.

The section also makes it mandatory to quote TAN in

Ø all TDS/TCS/Annual Information Returns,

Ø payment challans and

Ø certificates to be issued.

If TAN is not quoted, TDS/TCS returns will not be accepted by TIN-Faciliation Centres (TIN-FCs) 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 Rs. 10,000.

viji (CA FINAL student) (62 Points)
Replied 07 November 2008

hi rakesh

TAN number is provided to the deductor of TDS. While deducting & remitting TDS they will use it. Abbrevation is Temprovary Account Number.Not sure about the abbrevation.