TheTaxHeaven Dictionary - Know the meaning of tax


TAN Full Form

TAN stands for Tax Collection Account Number / Tax Deduction Account Number. It's a 10-digit alphanumeric number issued to entities by the Income-tax Department responsible for tax deduction or collection. It's used for e-filing of the Income Tax Return. 

Meaning of TAN Number

The TAN number's structure: The first four characters are alphabets, followed by five numeric digits, and the last character is an alphabet. The first three alphabets denote the jurisdiction code, and the fourth alphabet represents the TAN holder's initial. 

TAN is mandatory for entities who deduct or collect tax. They use it to get tax benefits under section 203A in the Income-tax Act, 1961. TDS on payments made by assessees is deposited under the TAN, enabling them to claim the deducted tax in their income tax return. 

Finding TAN Number

To find the TAN number, visit the official website of Income-tax Department, click 'Know TAN details', and fill in the required information. 

Who Should Apply for TAN?

Entities paying salary or commission to others need a TAN. These include: 

  • Individuals
  • Hindu Undivided Family (HUF)
  • Companies and Firms
  • Government (Central or State)
  • Sole proprietor
  • Associations of persons
  • Trusts