It is Tax Deduction Account Number. It is also called Tax Collection Account Number. It is 10 digit alpha numeric number which is provided and issues by the Income Tax Department. It is to be paid by all persons who are responsible for deductions in tax at source i.e. TDS or TCS i.e. who are required to collect tax at source.

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

There are two kinds of TAN

1) Application regarding issuance of new TAN in Form 49B

2) Form to change or alter or correct in TAN data in TAN allotted.

Reasons to have TAN

1) TDS Payments

2) Proprietorship Require TAN- However, individuals running a proprietorship are required to obtain TAN and deduct tax at source when required.

3) TAN Facilitation Centre- This is an authorised TAN assistance centre helping individuals to attain TAN without nay hassle and in a quick manner.

4) Validity- if you once receive TAN it has no expiry date. It is for lifetime. It must be filed quarterly on 15 th day of July, October, January and May. Failure of filings will result in penalty.