What is the full form of TAN
TAN: Tax Deduction and Collection Account Number
TAN stands for Tax Deduction and Collection Account Number. It is issued by Income Tax Department of India to those individuals and firms who are required to deduct or pay tax on payments made by them, under the Income Tax Act, 1961. Under Section 203A of the Income Tax Department, it is mandatory to provide the TAN in all TDS returns and Challans while paying tax.
So, TAN is the account number which is used to pay the tax, without having a TAN you can?t pay the tax. On receiving the tax amount the income tax department verifies the amount and if the taxpayer has deposited an extra tax by mistake then the extra tax will be credited back into his account.
Format of a TAN
TAN is a ten-digit alphanumeric number. The first three letters of TAN represents a city, the fourth letter is the initial of the taxpayer and the next five numbers and the last letter make the TAN unique.
How to apply for TAN