What is TAN Registration?
TAN i.e. Tax Deduction and Collection Account Number is a 10 digit alphanumeric number, e.g. DELM12345L, required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed.
TAN structure:
The first four TAN digits are alphabets, the next five are binary, and the final digit is an alphabet.
The first three alphabets stand for the authority codes.
The initial alphabet represents the TAN holder’s name, which can be that of a person, business, or other entity, and is represented by the fourth alphabet of the TAN.
Benefits of TAN
It is a lifetime-valid unique number.
In the end, deductions including wages, interest, and dividends are made using TAN.
When submitting taxes, the challan type 281 should be used, and the deductor’s name and address should be appropriately typed together with the 10 digit TAN number.
Because TDS Return certificates are given by a person or business that holds TAN, the taxpayer has the chance to find out how much tax they have paid.
The taxpayer can also use this TDS certificate as evidence of tax payment in any type of complaint.
All tax documents must contain TAN information.
