TAN
Also called: Tax Deduction Account Number
What is TAN?
TAN, the Tax Deduction and Collection Account Number, is a ten-character number a business needs in order to deduct TDS, deposit it and file the quarterly statements. It is separate from PAN and required of every deductor.
Why TAN matters
A business that starts paying rent, contractors or salaries above the thresholds needs a TAN before the first deduction is due. Depositing TDS without one is not possible, and the delay accrues interest.
How TAN works in practice
Quote TAN on every TDS challan, quarterly statement and certificate you issue. Small businesses often apply for it only when the first deduction obligation appears, which is usually a month too late.
Frequently asked questions
Not for regular deductions. Certain property transactions are the exception, where PAN is used with a specific form.