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TAN (Tax Witholding)

TAN (Tax Witholding)

Tax Deduction and Collection Account Number (TAN) 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.

The Tax Deducted at Source (TDS) on payments made by assessees is deposited under the TAN to enable the assessees who have received the payments to claim the tax deducted in their income tax return. So the concept to TDS is based on TAN- PAN mechanism. Every deductor has to apply for the TAN to deposit Tax deducted to Central Government.

 

Procedure to obtain TAN (Tax Witholding)

1. To apply for TAN in the prescribed form to the Authority along with

a. Identification Proof
b. Address Proof

2. On payment of prescribed fees, application get submitted and processed electronically.

3. TAN is generated and communicated to applicant.