TAN Number is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. Every Assessee liable to deduct or collect TDS is required to apply for a TAN Number and shall quote this number in all TDS Returns, TDS Payments and any other communication regarding TDS with the Income Tax Department.
As per Section 203A of the Income Tax Act, 1961, it is mandatory for all assessee’s liable to deduct TDS to quote this TAN Number in all communications regarding TDS with the Income Tax Department and failure to do so attracts a penalty of Rs. 10,000. TDS Returns and Payments would not be received by the banks if TAN number is not quoted.
The Tax Deducted at Source on payments made by assessee is deposited under the TAN to enable assessees who have received the payments to claim the tax deducted in their income tax return.
Structure of TAN Number
- TAN structure is as follows:
First four characters are letters, next 5 numerals, last character letter.
- Each tax deductor is uniquely identified by his TAN.
- If the TAN does not follow the above structure, then the TAN will be shown invalid.
- The first three characters represent the city or state where the TAN was issued. In the below table First three letter in TAN ‘DEL’ signifies that city in which TAN issued is Delhi.
- The fourth character of the TAN is the initial letter of the tax deductor. Which Means name of the Tax Deductor starts with this letter.
- Next five characters are system generated numeric Numbers.
- Last character is Alphabetic Number which is also known as check digit which is also system generated.
|RCC Code: Delhi||First Alphabet of Organisation Name||Numeric (5 Places)||Alphabet|