What is the full form of TAN?
The full form of TAN is Tax Deduction and Collection Account Number. Under the Income Tax Act, of 1961, TAN is granted to all those people and companies who are allowed to pay or deduct tax on cash payments by them by the Indian Income Tax Department. It is compulsory to include the TAN in all TDS returns & Challans when paying tax under Section 203A of the Income Tax Department.
- A taxpayer can’t pay the tax without having a TAN.
- The IT division confirms the amount upon receipt of the tax amount and, by accident, if the individual has paid an additional tax, then the amount will be returned directly into his account.
Structure of TAN
- TAN is an alphanumeric number of 10 digits.
- The first three TAN letters reflect a jurisdiction code, the fourth letter is the taxpayer’s initials, and the next five digits and the last digit is an alphabet, which 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.