What is TAN?

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What is TAN?

Every Indian taxpayer needs to file an income tax return on time. When filing income tax returns, some terms, such as PAN, TAN, or TIN number, appear. But what exactly does the PAN or TAN number mean?

Knowing these terms beforehand will help ease the income tax return filing process. In this guide, we will explore in detail the TAN full form, importance, process, and more.

Understanding of TAN

The TAN full form is a Tax Deduction and Collection Account Number. It is basically a 10-digit alphanumeric number issued by the income tax department to individuals who are responsible for tax deductions and collection.

According to Section 203A, TAN numbers need to be quoted in the form for all TCS (Tax Collection at Source) and TDS (Tax Deduction at Source) returns.

Individuals who don't quote a TAN number when filing an income tax return for a tax deduction or collection at source can attract a penalty of ₹10,000. This can also lead to the rejection of the TDS payment return.

Structure of TAN Number

The TAN number has a unique structure which consists of the following:

Initial Four Digits (Letters): The first four digits of the TAN number are letters. The first three letters represent the jurisdiction or area where the TAN issues. The fourth letter is the initial of the entity or individual applying for the TAN number.

Following Five Digits (Numerical): The following five digits are the special or unique numbers generated by the system itself.

Last Digit (Letter): The last digit is also the unique letter generated by the system.

The TAN number example looks like this: JPRD00214F.

Who Must Apply for TAN Number Registration?

Individuals or entities who are responsible for collecting or deducting tax at source need to do the TAN number registration. Below is the list of people that can obtain TAN:

  • Sole proprietors.

  • Hindu Undivided family.

  • Individuals.

  • Trust.

  • State government

  • Central government.

  • Associations

  • Organisation and firms

Importance of TAN Number

The TAN number is very crucial while filing income tax returns. Failure to provide a TAN detail can invite a penalty of ₹10,000. Below is the list of forms in which the TAN number needs to be quoted.

  • Submission of TCS or TDS certificate.

  • TCS or TDS statement or returns.

  • TCS or TDS payments challans.

  • Various other income tax-related forms.

How to Apply for a TAN Number?

There are online and offline procedures for tax deduction and collection account number registration. Let's examine both methods in detail.

Online TAN Number Registration Process

Step 1: Go to the authorised NSDL website.

Step 2: Scroll down to the "Services" option and then click on the "TAN" option.

Step 3: Now, click on "Apply Online".

Step 4: Select the option "New TAN".

Step 5: Next, select the "Category of Deductors".

Step 6: Further, fill out the "Form 49B" and then "Submit".

Step 7: Applicants need to pay the TAN registration fees.

Step 8: After the successful application, acknowledgement of the TAN application will be displayed on the screen.

Step 9: The acknowledgement letter and other documents should be printed out and sent to the NSDL official address.

Step 10: The authority will verify the application and document and then issue a TAN number.

Offline TAN Number Registration Process

Step 1: To get a TAN number offline, applicants need to visit the TIN facilitation centres in their area.

Step 2: After reaching the centre, fill out the Form 49B accurately.

Step 3: Submit the filled form along with other supporting documents to authorities.

Step 4: Next, the applicant needs to pay the application fees.

Step 5: The acknowledgement receipt will be provided to the applicant.

Step 6: Upon successful verification of the document and application form, a TAN number will be issued to the applicant.

How to Check the Application Status of TAN Number?

After furnishing the TAN number registration process, individuals can also check the status of the application.

Step 1: Visit the official NSDL website.

Step 2: Click on the option "TAN" in the services section.

Step 3: Next, click on the "Know Status of Application" option.

Step 4: Choose the applicant type from the options.

Step 5: Enter the acknowledgement number in the required field.

Step 6: After entering the number, enter the captcha code. Then click on the "Submit" button.

Step 7: The tax deduction and collection account number status will be displayed on the screen.

TAN Number Registration Fees

Individuals who want to acquire a TAN number need to pay the authorities a processing fee of ₹65. The application charge for a TAN Number is ₹55 with an 18% GST.

How to Know or Search TAN Details?

It is very common to misplace or forget the TAN details. In such cases, individuals can check the TAN details online. Below are the Steps that need to be followed.

Step 1: Go to the Income Tax Department's official website.

Step 2: Next, scroll down to the "TAN Search" option.

Step 3: After that, select the category of deductor and jurisdiction.

Step 4: Next, enter the name and registered number in the required field.

Step 5: After filling in the details, click on the "Continue" button.

Step 6: The OTP will be sent to the registered mobile number.

Step 7: Now, enter the OTP and click on the "Validate" option.

Step 8: The TAN details will be displayed on the screen.

What is the Difference Between PAN Vs TAN?

Let's understand the difference between TAN and PAN numbers in detail.

Parameters TAN PAN
Issued authority Income tax department Income tax department
Who should apply Individuals or entities who collect or deduct tax Taxpayers, non-taxpayers, NRIs, etc.
Governing laws of ITA Section 203A Section 139 
Primary objective It is used to make the TDS process easier. The number is used for every financial transaction.
Forms needed for application Form 49B Form 49A (Indian citizen) Form 49AA (Foreigners)


TAN number is crucial for an individual or entity that collects or deducts tax at the source. The number is used in various income tax forms. Individuals who don't quote the TAN number while filing their income tax returns need to face a penalty of ₹10,000 from the authorities.

Further, it can also lead to TDS return rejection. The individual or entity can employ a maximum of one unit of TAN number.

How Health Insurance Plan Can Help in Reducing Tax Liability?

Individuals or entities look for reasons to save or reduce their tax liability. The government of India also offers tax relaxation to individuals under various income tax sections.

One such income tax section is 80D, where individuals can save tax on a premium paid for a medical insurance plan in the financial year.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Can I pay TDS without TAN?

Can I pay TDS without TAN?


As per section 203A, individuals need to quote a TAN number for all TDS payments, returns, challans, and certificates.

Is TAN mandatory?


TAN is mandatory for companies, businesses, entities or individuals who collect or deduct tax at source on behalf of the income tax department. If a person does not have a TAN number while filing the income tax returns, then a penalty of ₹10,000 will be imposed.