Is the TAN number mandatory for Taxpayers?
It is very much essential for taxpayers to use their TAN while making tax deductions (or) collections while filling their TDS/TCS returns with IT Department
No organization can pay tax without a TAN number. It is a mandatory requirement for entities responsible for deducting/ collecting taxes.
Started, with the implementation of the TDS System (Tax Deducted at source, a method to collect taxes at the source itself ensuring a regular & steady flow of revenue to the government), under section 203A of IT Act 1961, it is mandatory to quote TAN allotted by IT Department on all TDS statements.
TAN Full Form – Tax Deduction & Collection Account Number
TAN Full Form: TAN stands for Tax Deduction & Collection Account Number. The TAN number was introduced in 1961. TAN is issued to government agencies, employees, companies, and individuals, who are responsible for paying or deducting taxes on various payments like salaries, rent, and professional fees.
Table of Content
- What is the Full Form of TAN?
- Structure of TAN
- Is the TAN number mandatory for Taxpayers?
- How to Apply TAN Application Form?