The TAN full form in income tax is Tax Deduction and Collection Account Number. The department issues a 10-digit alphanumeric number to people liable to collect tax at source or deduct tax at source under section 203A under the Income Tax Act. The income tax department functions under the central government of India.
Still, wondering as to what is TAN Full Form? Look no further! Keep reading about the TAN’s Full Form in income tax, its meaning and structure, how to get a tan number, and its components affecting the tax department of the central government in India.
The TAN number is a unique formation of alphabets and numbers. This number is mandatory for individuals and businesses who are subjected to pay or collect tax on cash payments. The Tax Deduction and Collection Account Number (TAN full form) number must be included in all the TDS returns and receipts when the tax is paid.
The TAN full form number has been subjected to various revisions since its inception. The present TAN number comprises 5 alphabets and 5 numerals. The structure of the TAN number has 4 alphabets in the beginning, followed by 4 numerals and 1 alphabet at the end.
Entities that are subject to tax at source (TDS) compliance in India include companies, branches or divisions of individual business branches, firms associated with individuals, trusts, and individuals or Hindu Undivided Families (HUFs) engaged in business activities.
We are pretty sure that you would have understood the answer to what is Tax Deduction and Collection Account Number (TAN full form) number. So, moving on to the secondary aspect of the TAN number, we must discuss how to get a TAN number.
To obtain a Tax Deduction and Collection Account Number (TAN full form) number, you need to meet certain eligibility criteria. You must apply for a TAN number;
You can apply for the Tax Deduction and Collection Account Number (TAN full form) number as soon as you meet the eligibility prerequisites. You must follow the application process religiously to obtain your TAN number. It can be done online and offline. You can submit your application form to the nearest TIN Facilitation Center or apply online. The following process will get you through the acquisition of your unique TAN number through online mode.
Following the application, the candidate will receive a 14-digit acknowledgment number.
The documents required for the Tax Deduction and Collection Account Number (TAN full form) application are:
Let’s discuss some of the reasons why the Tax Deduction and Collection Account Number (TAN full form) is important for deductors and collectors.
Basis | TAN | PAN |
---|---|---|
Meaning | Each person in charge of deducting or collecting TDS was given a unique 10-digit alphanumeric number by the income-tax authorities. | Each assessee is given a PAN, a unique 10-digit alphanumeric number, by the income-tax authorities. |
Purpose | Each assessee is given a PAN, a unique 10-digit alphanumeric number, by the income-tax authorities. | PAN is a special identification number that is given to each assessee who either voluntarily chooses to have a PAN or is required to have one. |
Holder | Each assessee who has a TAN must also have a PAN. | It’s possible for every assessee having a PAN to have a TAN or not. |
Required | Businesses and individuals are required to pay taxes at the source. | Each and every taxpayer must do it. |
Below are some of the advantages of the Tax Deduction and Collection Account Number (TAN full form):
The Tax Deduction and Collection Account Number (TAN full form) holders are responsible for certain activities.
Tax Deduction and Collection Account Number (TAN full form) is important in business transactions. Let us discuss the role of TAN in business transactions.
TAN verification is useful for all TAN holders and deductions because deductors can easily and promptly receive information from the Income Tax Department about the tax collected or deducted at the source. The verified TAN is available on the database of active TAN details of the department. Thus, necessary information is received by the verified TAN holders quickly.
The verified deductors have a provision of penalty. If you do not apply for a Tax Deduction and Collection Account Number (TAN full form) number or the TAN number is not quoted properly or if you are not intimidated, you attract a penalty of ₹10,000 under section 272B of the Income Tax Act. However, you can rectify the errors by submitting the request form to the Income Tax Department through ‘Rectification under Section 154’
There have been major changes in the Tax Deduction and Collection Account Number (TAN full form) utility and verification methods. The TAN methods have changed and updated to simplify the online processes and techniques. More centers for TAN corrections have been set up to facilitate simple processes for rectifying mistakes or discrepancies. These simple processes have made people get rid of hasty and complex TAN-related tactics and paperwork.
In a nutshell, the Tax Deduction and Collection Account Number (TAN full form) has undergone various changes since digitization. While the TAN number has witnessed multiple changes in its structures, the tax compliance mechanism has balanced the various business and individual transactions. TAN has helped the deductors and collectors do the work without haste. You can witness the transparency in your transaction due to the verified TAN number as you can communicate easily and quickly by itself. Thus, every tax deductor and tax collector must know the significance of TAN. They should be up to date with the rules and provisions of the income tax department so that they can streamline their filing tax return and other application process.
Learn more about some other full forms:
CIBIL Full Form | |
CVV Full Form | SLR Full Form |
PAN Full Form | IFSC Full Form |
IGST Full Form | SIP Full Form |
CMA Full Form | KYC Full Form |
The TAN number list is a proper and complete list of TAN numbers authorized under the income tax department. It verifies the authenticity of the TAN number by providing it to the deductor and collectors.
A TAN is valid for a lifetime. It is never expired and doesn’t need to be renewed.
The processing time for a TAN application varies, but it typically takes a few weeks to receive your TAN after submission.
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A TAN is valid for a lifetime, and renewing it is unnecessary.
The processing time for a TAN application varies, but it typically takes a few weeks to receive your TAN after submission.
You will need to provide proof of identity, proof of address, and details related to tax deduction or collection along with the TAN application form.
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Chegg India does not ask for money to offer any opportunity with the company. We request you to be vigilant before sharing your personal and financial information with any third party. Beware of fraudulent activities claiming affiliation with our company and promising monetary rewards or benefits. Chegg India shall not be responsible for any losses resulting from such activities.
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