What is TAN?
The TAN number, or tax deduction and account collection number is a 10-digit alpha number that all individuals eligible for collection or deduction of tax are expected to receive. According to Section 203A of The Revenue Tax Act, 1961, the quotation on any TDS return is required by the Tax Department (ITD) to quote the Tax deduction account number (TAN).
ITD has updated the TAN structure for the last few years. This alphanumeric code is unique to ten digits. Consequently, TAN has been given to all current TAN holders in this new format.
How to apply for tAN
An online application can be submitted to either the TIN Facilitation Center (TIN-FC) of the NSDL via the website or a physical TAN application.
Before completing the application form, applicants should follow the directions and guidance given in the application form.
Who can Apply for TAN?
Whether you’re paying someone a salary or commission, you’ll need a TAN. This can include the following:
- Sole proprietor
- Individuals
- Hindu Undivided Family
- Company
- Firms
- Trusts
- Associations of persons
- Central or state government or a local authority
processing fee for TAN
The processing fee for a TAN application is Rs 65. Payment may be made using a demand draught, a check, a credit card, a debit card, or net banking. If an applicant wishes to pay by demand draught or check, he or she must make the payment to ‘NSDL – TIN’. On the back side, the applicant’s name and the acknowledgment amount must be written.
