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. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.

The correct structure of TAN is as mentioned below:

  • TAN structure is as follows: AAAA99999A: First four characters are letters, next 5 numerals, last character letter.
  • Each tax deductor is uniquely identified by his TAN.
  • If the TAN does not follow the above structure, then the TAN will be shown invalid.
  • The first three characters represent the city or state where the TAN was issued. In the below table First three letter in TAN ‘BLR’ signifies that city in which TAN issued is Bangalore.
  • The fourth character of the TAN is the initial letter of the tax deductor. Which Means name of the Tax Deductor starts with this letter.
  • Next five characters are system generated numeric Numbers.
  • Last character  is Alphabetic Number which is also known as check digit which is also system generated.
B     L   R W 3     9   5   6   7 H
RCC Code : Bangalore First
Alphabet of
Organisation
Name
Numeric (5 places) Alpha­bet

Relevance of TAN

It is mandatory to quote TAN in following documents:

(a) TDS statements i.e. return

(b) Challans for payment of TDS

(c) TDS certificates

(d) Other documents as may be prescribed

Penalty

If a person fails to apply for TAN or failed to quote or quotes incorrect TAN in the above specified documents, a penalty of Rs. 10,000 shall be levied.

Procedure for TAN application:

Online Method:

The deductor can apply for TAN online at NSDL-TIN website (https://tin.tin.nsdl.com/tan/index.html)

(1) On confirmation of correct uploading of online application, an acknowledgement will be displayed on screen. The acknowledgement consists of:

    • Unique 14-digit acknowledgement number
    • Status of the applicant Name of the applicant Contact details
    • Payment details
    • Space for signature

(2) Applicant has to save the acknowledgment and should obtain a print of the same.

(3) The applicant should sign the acknowledgment. Signature should only be within the box provided in the acknowledgement.

(4) In case of applicants other than individual, the authorised signatory shall sign the acknowledgement and affix the appropriate seal or stamp.

(5) Thumb impression, if used, should be attested by Magistrate/Notary Public/Gazetted Officer under his official seal and stamp.

Offline Method:

An application for allotment of TAN shall be made in duplicate in Form No. 49B at any TIN Facilitation Centers (TIN-FC). Addresses of TIN-FCs are available at NSDL-TIN website.

Charges for obtaining a TAN

The processing fee is Rs. 65 (including Goods and Service Tax).

(Republished with Amendments by Team Taxguru.)

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11 Comments

  1. MOHANADAS K says:

    IT IS SAID THAT THERE ARE 2 TYPES OF TAN AS STATED BY THE IT DEPARTMENT, WHAT ARE THEY ?.
    AT ONE TYPE IT IS BOOK TRANSER AND THE PAYMENT OF INCOMETAX IS ON THE SAME DAY AND THE OTHER IS REMITTANCE OF INCOME TAX IS BEFORE THE 5TH OF THE NEXT MONTH. KINDLY CONFIRM ?

    1. MUKESH says:

      Last digit of tan IS CHECK DIGIT. You may divide numerals (5 digits) by 7 and find the remainder if is 0, check digit A, if 1 then B and so on if it is 6 than G. There is no check digit from (H to Z) as remainder may max 6.

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