What is the Full Form of TAN
Full Form of TAN
The full form of TAN is “Tax Deduction Account Number or Tax Collection Account Number”. The TAN number consists of 10 digits which are provided by the income tax department. TAN is to be obtained by all personnel who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
What is TAN?
TAN is a 10-digit alpha-numeric combination that is needed to pay the tax to the Indian government. Under the Income Tax Act, 1961, TAN is granted to all those persons and companies who are allowed to pay or deduct tax on cash payments by them by the Indian Income Tax Department. It is compulsory to include the TAN in all TDS returns and Challans when paying tax under Section 203A of the Income Tax Department.
Benefits of TAN
The full form of TAN is already discussed in the above section. Here we are going to see some of the primary benefits of TAN. The main application of the TAN number is as below.
- A taxpayer cannot pay the tax without having a TAN number.
- The IT division confirms the amount upon receipt of the tax amount and, by accident, if the individual has paid an additional tax, then the amount will be returned directly to his/her account.
Format of TAN number
The Indian Government has provided a unique 10-digit number to all the persons who lie in tax-paying categories. It is created on a pattern which is mentioned below. The full form of TAN is described here.
- TAN is an alphanumeric number of 10 digits.
- The first three TAN letters reflect a city, the fourth letter is the taxpayer’s initials, and the next five digits and the last character makes the TAN different.
How and where to Apply for TAN
After the full form of TAN, the Format of the TAN number, and the Benefits of TAN, we are going to cover the process by which an individual can apply for the TAN number. The TAN number is a much-needed document to pay the tax as per the taxation system of the Indian government.
- The taxpayer must fill out Form No. 49B to apply for a TAN on the NSDL portal.
- Individuals must then add all of the documents required, including proof of identity and address verification, and send it to the NSDL or Tax Information Network Facilitation Center website.
- The NSDL division confirms the information upon obtaining the TAN application form and transfers the application form to the IT division.
Persons Eligible for TAN
We have covered the full form of TAN, benefits of TAN, and format of TAN. Here will cover the eligibility for applying for a TAN number. As discussed above, every person liable to deduct tax at source or collect tax at source is required to get a TAN number. However, a person required to deduct tax under section 194-IA can use a PAN number instead of a TAN number as such a person is not required to obtain a TAN. Further, a person required to deduct tax under section 194-IB or section 194M shall not be required to obtain a tax deduction account number (TAN). As per section 194-IB, any individual or HUF [whose books of account are not required to be audited under section 44AB] is liable to deduct tax at the rate of 5% while making payment of rent of any land or building or both to a resident person if the amount of rent exceeds Rs. 50,000 for a month or part of a month. Here we have given various information related to full form of TAN.
What is the full form of TAN and TIN?
The full form of PAN is Permanent Account Number, The full form of TAN is Tax Deduction and Collection Account Number, and the full form of TIN is Taxpayer Identification Number.
Are TAN and PAN are same?
No, both numbers are different, but in some cases, a person can use PAN instead of TAN. While TAN is a number allocated to tax-deductor, PAN or Permanent Account Number is allotted to taxpayers. PAN is also a 10-digit identity number mandated by the Income Tax Department for any individual who carries out financial transactions or pays Income Tax.
What is the TAN number?
TAN is a unique 10-digit alpha numeric number used to pay taxes to the Indian government. The fee for processing the TAN application is Rs. 62 (Rs. 55 + 10.20% service tax). You can use a credit card or debit card or net banking to make this payment. Full form of TAN is described in this article.
What is the TAN of a company?
Tax Deduction Account Number or Tax Collection Account Number (TAN) is a 10-digit alpha-numeric number issued by the Income-tax Department.
How to download TAN online?
Till now we have covered the full form of TAN, its benefits of TAN, and how to apply for TAN. Here we will see how can we download the TAN online. Let us tell you how you can download TAN online. An applicant can know the TAN details either by providing the name or TAN. If you have forgotten TAN, it can be retrieved by following the steps mentioned below:
- Visit www.incometaxindiaefiling.gov.in
- Click on ‘Know Your TAN’
- Select ‘Name’ under the ‘TAN Search’ option
- Select ‘Category of Deductor’
- Select ‘State’
- Provide ‘Name’
- Provide the registered mobile number
- Click on ‘Continue’
- Insert the One Time Password (OTP) sent on the registered mobile number on the corresponding screen
- Next, click on ‘Validate’
- The details are displayed on the corresponding screen.
Why TAN card is required?
A TAN card is a mandatory document to be quoted for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). TDS and TCS cannot be accepted by TIN facilitation centers without a TAN card. The full form of TAN is described here.
Is TAN mandatory?
Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote the Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS statements. Know more here.
What documents are required for TAN?
While applying for a new TAN, applicants are not required to submit any documents. The only thing they need to submit is the signed acknowledgment slip if they apply for a new TAN through online mode.
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