The Form of TAN is Tax Deduction and Collection Account Number. TAN number is a ten-digit alphanumeric number that is designated to any individual under the income tax act, 1961, who is expected to deduct TDS, i.e., charge deducted at source while handling any installment as indicated under the carry on like installment for lease, commission, proficient and specialized installment, and so on.
TAN Full Form – Tax Deduction and Collection Account Number
Who is Allowed to Apply for TAN?
Each individual who is expected to deduct and gather income tax for income tax authorities is obligatorily expected to apply for TAN. Likewise, TAN is obligatorily expected to be cited in each TDS/TCS return, TDS/TCS installment challans, testaments to be given, and so on. Inability to apply for TAN might bring about the use of the punishment. An individual can be of any sort like: –
- Individual
- Company
- Sole Proprietor
- Firms
- Association of Persons and so on.
How to Apply for TAN?
- Each individual expected to deduct and gather tax for the benefit of the government is expected to apply for a TAN, yet now the question is how to apply. An individual might apply for TAN either through web-based mode or offline mode. It is simple, and one can just follow the accompanying strides to get his/her TAN number.
- TAN number is apportioned by Income-tax authorities. On account of the web-based application, a candidate needs to fill 49B on the web and present something similar alongside application ostensible charges. On account of disconnected application, a candidate for assignment of TAN simply needs to document structure 49B and submit it at any of the TIN Facilitation Centers.
- The application form can likewise be submitted on the web. Once in the wake of documenting an application and submitting it the equivalent at facilitation centers, a candidate will be dispensed TAN subject to the condition that no errors are found in the application. An acknowledgment number will be produced after you apply. This number can be followed online at the Income Tax Website.
Structure
Tax Deduction and Collection Account Number is an interesting number dispensed to every assessee. The design is as per the following: –
ABCD12345G
As apparent over, the series contains 10 alphanumeric characters
- The initial four are letter sets
- The next five are numbers
- The last person will again be a letter set.
Model
As currently referenced in the design, it is a 10-digit unique number.
DCBA98765G
Benefits
- TAN number, inside itself, holds no advantages for the assessee with the exception of getting away from the document by conforming to a legitimate prerequisite.
- It is otherwise called TDCAN, which effectively sorts, distinguishes, and matches the number of TDS? TCS is deducted, gathered, and given vital credit to the individual against whose personal expense obligation TDS/TCS is deducted.
- Generally, we can say that TAN gives benefits to personal expense experts for gathering charges at the mark of time when pay gets accumulated.
Conclusion
TAN is the ten-digit alphanumeric number dispensed by the Income Tax position to gather, deduct, and further store charges for someone else to Income Tax Authorities. On account of appropriateness, an individual needs to mandatorily apply for TAN and further agree with every one of the legitimate prerequisites as determined under the Income Tax Act.