TAN Full Form, Structure and Verification Process

Taxation

TAN Full Form, Structure and Verification Process

Registrationwala

TAN full form is Tax Deduction and Collection Account Number. This number is issued by the Income Tax Department. For entities deducting or collecting tax at source, having a TAN is essential. Check out this blog post to know what TAN is, its structure, TAN verification by Name/TAN Number, and more.

What is TAN full form?

TAN full form is Tax Deduction and Collection Account Number. It is a ten-digit alphanumeric number issued by the Income Tax Department to those who deduct or collect tax at source. Quoting TAN on all TCS or TDS returns is a compulsory requirement under Section 203A of the Income Tax Act 1961.

What is the Structure of TAN?

TAN number isn’t a random combination of numbers. Each and every TAN digit holds significance. The structure of TAN is explained below:

TAN Verification by Name

If you want to find your TAN or someone else’s TAN, you can conduct a TAN number search by name. To conduct this search, you need to follow the simple steps mentioned below:

Step 1: To verify TAN, you must first visit the official e-filing website of Income Tax Department.

Step 2: Once you land on homepage, you must locate ‘Know TAN Details’ tab and then click on it. 

Step 3: Now, under ‘TAN Search’ tab, you need to choose the ‘Name’ option to be able to conduct the TAN number search by name.

Step 4: Now, using the drop-down menu, choose the appropriate “Category of Deductor” and the “State” where the entity is registered. 

Step 5: Enter the full entity name and a valid mobile no. 

Step 6: Upon entering all the necessary details, click on “continue” option. After this, the system will send a one time password to the mobile number.

Step 7: Enter the one time password correctly and then click on the “validate” option. If the details provided are correct, the portal will show TAN details of the deductor.

TAN Verification by TAN Number

You can also opt for TAN verification by TAN Number to find your TAN or verify someone else’s TAN. For this, you need to follow the below-mentioned steps:

Step 1: The first step in TAN verification by TAN number is to visit the official e-filing website of Income Tax Department.

Step 2: Once you are on homepage, you must click on ‘Know TAN Details’ tab.

Step 3: Now, you need to select the “TAN” option.

Step 4: With the help of dropdown menus, choose the “Category of Deductor” and “State” if applicable.

Step 5: Afterwards, enter the TAN number and a valid mobile no.

Step 6: After you enter all the search details, click on the “Continue” button to proceed further. The system will send a one time password to the mobile no.

Step 7: Finally, you need to carefully enter the one time password and then click on the “Validate” option. If the information you provided is correct, the portal will show the TAN details of the deductor.

Conclusion

TAN’s full form is Tax Deduction and Collection Account Number. It contains 10 alphanumeric digits. The Income Tax Department issues TAN to individuals and businesses involved in collection or deduction of tax at source. If anyone is found to be deducting TDS or collecting TCS without a valid TAN, then they are liable to a penalty of Rs. 10,000 under Section 272BB of the Income Tax Act. If you need assistance in TDS return filing, you can contact our TDS consultants at Registrationwala. We’ll guide you through the entire process so you can file your TDS return smoothly.

Disclaimer: The information provided in this article is for general informational purposes only. It should not be considered as legal, tax or professional advice. 

Frequently Asked Questions (FAQs)

Q1. What is TAN full form?

A. The TAN full form is Tax Deduction and Collection Account Number.

Q2. What is the processing fee for TAN application?

A. For the TAN application, a processing fee of Rs. 77 (Rs. 65.00 application charge + 18.00% Goods & Services Tax) is applicable.

Q3. What is the difference between PAN and TAN?

A. Both PAN and TAN are tax related identifiers. However, they are different from each other. PAN stands for Permanent Account Number and is for all taxpayers in India. On the other hand, TAN stands for Tax Deduction and Collection Account Number and is exclusively for those who collect or deduct tax at source.

Q4. What are the consequences of deducting TDS without a TAN?

A. If you deduct TDS without a TAN, you are liable to a penalty of Rs. 10,000 under Section 272BB of the Income Tax Act.

Q5. Which form do I need to file for obtaining TAN?

A. You need to file form 49B for obtaining TAN. You can find this form on the Protean eGov Technologies Ltd website.

Q6. What are the accepted payment methods for TAN application?

A. The accepted payment methods for TAN application include the following: (i) debit card, (ii) credit card, (iii) net banking, (iv) cheque and (v) demand draft.

Q7. Does TAN require renewal?

A. No, TAN does not require renewal. Once the TAN is issued by Income Tax Department, it remains valid for lifetime unless it is surrendered by the individual or gets cancelled by the Income Tax Department. 

Q8. How many TAN numbers can I have?

A. You can only have one TAN number. Having two or more TAN numbers is considered illegal in India.

Related post

Subscribe to our newsletter