Tax Deduction Account Number or Tax Collection Account Number is a ten digit alphanumeric number issued by the Income Tax Department. TAN is to be obtained by all those persons responsible for deducting tax as source (TDS) or collecting tax at source (TCS).
It is mandatory to quote TAN Number allotted by IT Department in TDS/TCS Returns, TDS/TCS payment challan and TDS/TCS Certificates.
TAN Application Services:
£ Application for New TAN – Form 49B,
£ Changes or correction in TAN allotted.
Uses of TAN:
£ TAN helps you to deposit TDS to Central Government account and generate Form-16,
£ TAN is used by IT department auto-capture data like name, address & Postal Index Number of the TAN holder.
Penalty for not obtaining TAN:
A penalty of up to ₹10,000 can be levied if a person is deducting/collecting tax at source does not have a TAN. Also, penalty of ₹10,000 is levied for failure to quote TAN in TDS/TCS challans & certificates.