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What is TAN of a company?

TAN is an abbreviation for Tax Deduction and Collection Account Number. This is a ten-digit alphanumeric number that is allotted to those whose tax is supposed to be deducted at source or TDS. This number is very important for businesses deducting taxes. It needs to be quoted in TDS or TCS returns.

What is the structure of TAN?

The structure of TAN has been revised during the last few years. The first four characters are letters, the following five letters are numerals and the very last character is a number again.

Important points about TAN 

1. Any person or business which is liable to deposit tax deducted at source requires TAN. It is mentioned while depositing returns, challans and certificates. It is issued for a lifetime.

2. TAN needs to be mentioned during all types of TDS/ TCS returns, challans or certificates.

3. TDS is not accepted without a TAN number. This will lead to issues if one is eligible for TDS refund.

4. Challans that do not have a TAN are denied by banks. 

Following are the other obligations related to TAN 

A person can be punishable with rigorous imprisonment for a term which shall not be less than three months if he/she fails to pay to the credit of the Central Government the tax deducted at source by him/her. This term can extend up to 7 years with fine. They will also be eligible for interest on a monthly basis in case the TDS amount is paid after the due date. 

If a person or company fails to deposit TDS even after a period of one year of the due date, they will be burdened with a heavy penalty.

How to search for TAN

An applicant can know the TAN details by either providing the name or the TAN number. If in case the person has forgotten his/her TAN, it can be retrieved by following the steps mentioned below

  • Visit www.incometaxindiaefiling.gov.in
  • Click on ‘Know Your TAN’
  • Choose ‘Name’ under the ‘TAN Search’ option
  • Choose ‘Category of Deductor’
  • Choose ‘State’
  • Enter ‘Name’
  • Enter the registered mobile number
  • Click on ‘Continue’
  • Enter the One Time Password (OTP) sent to the registered mobile 
  • Click on ‘Validate’
  • The details will be displayed on the screen

The same steps are followed to know the TAN of a person.

How to register to know the TAN of a new user

A new member can register himself/herself by following the steps given below

  • Visit www.incometaxindiaefiling.gov.in
  • Choose ‘Register Yourself’
  • Select the user type in the corresponding screen and click   ‘Continue’
  • Details like PAN, name, date of birth and residential status must be provided
  • Click on ‘Continue’
  • Fill the registration form and click on ‘Continue’
  • Follow the instructions mentioned on the next corresponding        screens

Conclusion

TAN is a number that is important for every business that deducts taxes. TAN is a mandated requirement to be quoted in all TDS/TCS returns. Failure to quote TAN in documents and apply for the same will lead to a penalty of Rs 10,000.

Contact Information:

Call us at +91-9900328729 / 080 40909797 for more details.

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