The tax deduction account number is a 10 digit alpha numeric number that is allotted to all the Persons/Employers who are responsible for deducting tax at source or collect tax at source on the behalf of income tax department.
The TAN number is allotted by the income tax authorities to the applicant. As per section 203 A of the Income Tax Act 1961 it is mandatory for every tax deductor to quote the tax deduction number in all TDS returns and all other communication with the tax authorities and failure to do so will attract a penalty of Rs 10,000.
TAN number is a 10 digit number. In which first 3 alphabets represent the jurisdiction code, the 4th alphabet is the initial of the name of the TAN holder who can be a company, firm, individual, etc further five numbers and the last digit makes the TAN number of every person unique.
The following legal bodies collecting TDS are responsible for obtaining TAN Number
Following documents are required obtaining a TAN number-
An application for TAN can be filed through online mode or offline mode.
Form 49B in duplicate shall be submitted to any TIN-FC to file an application for allotment of TAN. Addresses of TIN-FCs are available at NSDL-TIN website.
In the case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No INC-7.
To initialize the process of obtaining TAN through online mode form-49B shall be filed.