TAN Number format
TAN Number Format: Complete Guide for 2026
In this post, we will discuss TAN, or Tax Deduction and Collection Account Number, its format, who needs it, and why it is essential for deducting or collecting tax in India. We will also cover how to check your TAN online and the penalties for noncompliance.
Let us look at each section in detail:
What is a TAN Number?
TAN (Tax Deduction and Collection Account Number) is a 10-character alphanumeric number given to persons or organisations who deduct or collect tax for the government.
For example, when an employer deducts TDS from an employee’s salary, the tax is deposited using the employer’s TAN. In the same way, businesses that collect TCS must use their TAN to deposit the tax and report the details.
A valid TAN is needed for the following purposes:
- Filing TDS and TCS returns
- Depositing deducted or collected tax with the government
- Issuing TDS or TCS certificates to employees, vendors, or contractors
- Avoiding penalties and other compliance issues
This makes TAN an essential requirement for anyone responsible for TDS or TCS.
Who Should Apply for TAN?
The following persons or entities require TAN:
- Employers who deduct TDS on salary payments and also on payments made to contractors, professionals, rent, interest, etc.
- Businesses that collect TCS on specific goods or services.
- Banks that deduct TDS on interest earned on fixed deposits.
- E-commerce platforms that deduct TDS on payments made to sellers under Section 194O.
- Freelancers and consultants are required to deduct TDS on payments made by them.
Structure of TAN Number
A TAN is a 10-character code made using letters and numbers.
Example: BLR R 12345 C
- The first three letters show the city or state of the applicant. For example, BLR stands for Bangalore.
- The fourth letter is the first letter of the applicant’s name, like R for Ramesh Ltd.
- The following five numbers are system-generated and are unique for each TAN.
- The last letter is a randomly generated alphabet used for checking purposes.
Each TAN is unique and is used by the Income Tax Department to keep track of TDS and TCS transactions.
Why is the TAN Important?
A TAN is essential in the Indian tax system. Here is why it matters:
- Legal requirement: Any person or business that deducts or collects tax must have a TAN as per the Income Tax Act, 1961.
- Needed for TDS and TCS payment: Without a TAN, you cannot deposit the tax deducted or collected with the government.
- For returns and certificates, a TAN is required to file quarterly TDS and TCS returns and to issue certificates such as Form 16 and Form 16A.
- Helps avoid penalties: If a TAN is not obtained when required, a penalty can be charged under Section 272BB of the Income Tax Act.
- Smooth and hassle-free compliance: Having a TAN helps businesses comply with tax rules properly, avoid legal problems, and maintain trust with employees, vendors, and tax authorities.
How to know your TAN Number online?
1. Go to the Income Tax e-filing website. On the left side of the page, under Quick Links, click on Know Your TAN.
- After clicking, you will be taken to the next screen, shown below. Fill in the details as follows:
- TAN Search: Choose either TAN or Name
- Category of Deductor: Select the correct category from the drop-down list
- State: Choose the state from the drop-down
- TAN or Name: Enter the TAN if you selected TAN search, or enter the name if you selected name search
- Mobile No.: Enter your mobile number
- Once all details are filled, click the “Continue” button.
4. Click on the Continue button above. You will receive an OTP on your registered mobile number. Enter the OTP in the provided box, then click Validate.
5. Once you enter and verify the OTP, the TAN details will appear just like shown in the screen below.
Penalty for Non-Compliance
Non-compliance with TAN rules can lead to fines under Section 272BB of the Income Tax Act.
- If you don’t apply for a TAN, you may have to pay a penalty of ₹10,000.
- If you quote the wrong TAN while filing TDS or TCS returns, a penalty of ₹10,000 can be imposed.
- Using an incorrect TAN on documents may also cause your TDS or TCS filings to be rejected.
To avoid these problems, make sure to apply for a TAN and always use it correctly while filing TDS or TCS.
Difference Between TAN and PAN
|
Feature |
TAN (Tax Deduction & Collection Account Number) |
PAN (Permanent Account Number) |
|
Purpose |
Needed for deducting or collecting tax at source (TDS/TCS) |
Needed for financial transactions and filing income tax |
|
Who Needs It? |
Employers, businesses, banks, e-commerce platforms, etc. |
Every taxpayer, including individuals and businesses |
|
Number Format |
10-character alphanumeric (e.g., MUMT12345L) |
10-character alphanumeric (e.g., ABCDE1234F) |
|
Issuing Authority |
Income Tax Department through NSDL |
Income Tax Department through NSDL |
|
Legal Requirement |
Must have it to deduct or collect tax at source |
Must have it for filing tax returns, opening bank accounts, and other financial activities |
Conclusion
A Tax Deduction and Collection Account Number, or TAN, is significant for any business, employer, or organisation that deducts or collects tax at source. Without a TAN, you cannot deposit TDS or TCS, file your returns, or issue TDS certificates. This can lead to penalties from the tax authorities.
Knowing what TAN is, who should have it, how to apply for it, and the rules to follow helps taxpayers stay on the right side of the law and avoid fines.
For businesses dealing with TDS or TCS, having and using a TAN correctly is not optional; it is a legal requirement. It is essential to stay up to date with the latest rules to ensure smooth tax compliance.
By that, we have come to the end of this post. If you have any questions or need clarity on TAN Number format, feel free to leave them in the comment section below.
FAQs
Q. How can I know my TAN allotment date?
Ans: You can find out your TAN allotment date from the TAN allotment letter sent by the Income Tax Department. If you don’t have the letter, you can also check by contacting the Income Tax Department’s customer care.
Q. Can I find my TAN number using my PAN number?
Ans: No, you cannot get your TAN just by giving your PAN. To know your TAN, go to www.incometaxindiaefiling.gov.in and click on ‘Know Your TAN / AO’.
Q. What is the fee for the TAN application?
Ans: The fee for applying for a new TAN or making any changes to an existing TAN is ₹65, which includes GST.
Q. How can I find the TAN of my employer?
Ans: You can check your employer’s TAN on Form 16, Form 16A, or on your Form 26AS.
Q. What is TIN?
Ans: TIN stands for Tax Identification Number. It is a 15-digit number issued to taxpayers registered for VAT.
Q. Do we need a separate TAN for TDS and TCS?
Ans: No, the same TAN can be used for both TDS and TCS.
