What is a TAN Number?
The TAN full form is Tax Deduction Account Number/ Tax Collection Account Number. The TAN is a 10-digit alphanumeric number that the Department of Income Tax issues to those individuals and entities that are liable to TDS/TCS.
Any firm, company, or individual that is responsible for TCS/TDS can use the TAN while they are e-filing their Income Tax Return.
Structure of TAN
The format of TAN is: JPRD00214F.
In this format of TAN, the first four digits are alphabetic, then the five digits are written in numeric, and the last digit is alphabetic again. In this format, the first three letters are a representation of the jurisdiction code of the place where the TAN was issued, and the last letter represents the First letter of the TAN holder's name.
Any company, firm, or individual can obtain a TAN; the only condition is that they should be responsible for TDS or TCS. It is compulsory that TAN is allotted to all those firms, individuals, or companies that deduct or collect the taxes at source.
Under the Income Tax Act of 1961, Section 203A, it is stated that all individuals and entities can apply for the TAN if they want to claim the tax benefits. The TDS (tax deducted at source) on payments made by individuals is deposited under the TAN, and it enables the other assesses who received payments to claim the tax deducted in their ITR.
Who is Eligible for TAN?
All persons who are liable for TDS/TCS are required to obtain the TAN Number. These persons include:
- Companies and Firms
- Individuals
- Hindu Undivided Family (HUF)
- Sole Proprietor
- Trusts
- Associations of persons
- Central or State Government
India
USA
Tax Consultancy Services