TAN stands for Tax Deduction and Collection Account Number a unique alpha numeric 10 digit number allotted by Income Tax Department of India.

Every person who is required to deduct or collect shall compulsorily obtain TAN.

 

RELEVANCE OF TAN

As per section 203A of the Income-tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN.

Section 203A also makes it mandatory to quote TAN in following documents:

(a) TDS statements

(b) TCS statements

(c) Statement of financial transactions or reportable accounts

(d) Challans for payment of TDS/TCS

(e) TDS/TCS certificates

(f) Other documents as may be prescribed