about TAN

RAKESH

Almost CA

1868 Points Posted on 07 November 2008

hi wat is tan? wat is the use of the TAN and wat is the abbreviation of TAN

Replies (7)

CA Chaitanya

PRACTISING CA

3022 Points Posted on 07 November 2008

It is tax deduction account number. It has to be quoted while filing TDS return with the department.

Juzer Sadikot

CA - innovative solutions for Imports an

1014 Points Posted on 07 November 2008

Dear All

What is TAN?
Ans. TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in all TDS/TCS returns (including e-TDS/TCS return), TDS/TCS payment challans and TDS/TCS certificates.

Special Note: First 3 Alphabets of TAN is jurisdiction code 4^th alphabet is initial of name of Company/Firm/Individual etc.

Why is it necessary to have TAN?
Ans. The provisions of Section 203A of the Income-tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN.

The section also makes it mandatory to quote TAN in

Ø all TDS/TCS/Annual Information Returns,

Ø payment challans and

Ø certificates to be issued.

If TAN is not quoted, TDS/TCS returns will not be accepted by TIN-Faciliation Centres (TIN-FCs) and challans for TDS/TCS payments will not be accepted by banks.

Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000.

viji

CA FINAL student

55 Points Posted on 07 November 2008

hi rakesh

TAN number is provided to the deductor of TDS. While deducting & remitting TDS they will use it. Abbrevation is Temprovary Account Number.Not sure about the abbrevation.