Full Form of TAN | TAN Full Form | What is TAN | About TAN
Full Form of TAN is Tax Deduction and Collection Account Number: TAN stands for Tax Deduction and Collection Account Number. It’s issued by income tax Department of India to those people and companies who are needed to deduct or pay tax on payments created by them, underneath the income tax Act, 1961. Under Section 203A of the income tax Department, it’s necessary to provide the TAN in all TDS returns and Challans while paying tax. So, TAN is the account number that is used to pay the tax, without having a TAN you can?t pay the tax. On receiving the tax quantity the income tax department verifies the number and if the taxpayer has deposited an additional tax by mistake then the additional tax are credited into his account. Full Form of TAN.
TAN could be a ten-digit alphanumerical number. The primary 3 letters of TAN represents a city, the fourth letter is the initial of the taxpayer and also the next 5 numbers and the last letter make the TAN unique.
According to Wikipedia:
In India, a Tax Deduction and Collection Account Number (TAN) is a 10 digit  number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. The Tax Deducted at Source on payments made by assessees is deposited under the TAN to enable the assessees who have received the payments to claim the tax deducted in their income tax return. TAN is applied through “Form No. 49B” (prescribed under Indian Income Tax Law). A completed form can be submitted online at the NSDL website or at the “Tax Information Network Facilitation Center” (TIN-FC). These centers are established by NSDL, an appointed intermediary by the Central Government, across India.
TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be accepted if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000 No documents are required to be filed with the application for allotment of TAN. However, where the application is made online, the acknowledgment (a PDF file) which is generated after filling up the form must be forwarded to NSDL. Detailed guidelines for the procedure are available at NSDL website. A TAN application should accompany a ‘proof of identity’ and a ‘proof of address’ (photocopies) of the deductor. In the case of online applications, these documents need to be sent over mail (post/courier) to NSDL – TAN Application division.
For TAN fill up the form no. 49B. Then attach all the specified documents like identity proof and address proof and submit it at the website of NSDL or Tax info network facilitation centre.
On receiving the TAN application form, the NSDL department verifies the details and sends the appliance form to tax department.
The tax department approves the appliance and sends a unique number (TAN) to the NSDL department.
The NSDL department informs the applier regarding the TAN.