What is TAN?

TAN (Tax Deduction and Collection Account Number) is a unique 10-digit alphanumeric number issued by the Income Tax Department of India under Section 203A of the Income Tax Act, 1961.

It is mandatory for all individuals or entities responsible for deducting or collecting tax at source (TDS/TCS) to obtain a TAN. This number must be quoted on all TDS returns, challans, and certificates to ensure proper tracking and compliance.

Why is TAN Required?

TAN is mandatory for all individuals and entities responsible for deducting or collecting tax at source. Without a valid TAN, Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns cannot be accepted by TIN Facilitation Centres, and banks will not process challans for TDS/TCS payments.

Failure to apply for a TAN or to quote the 10-digit alphanumeric number in required documents — such as TDS/TCS returns, e-TDS/e-TCS filings, certificates, and payment challans — can result in a penalty of ₹10,000 as per the Income Tax Act.

Types of TAN Applications

There are two primary types of TAN applications:

Application for Issuance of a New TAN - For individuals or entities applying for a TAN for the first time.

Form for Change or Correction in TAN Data - For those who already have a TAN but need to update or correct details such as name, address, or contact information.