Glossary · Income Tax
TAN
Tax Deduction Account Number — a 10-digit alphanumeric ID required by every person who deducts or collects tax at source.
TAN is structured as AAAA99999A and must be quoted on every TDS or TCS challan and on the quarterly return. It is applied for on Form 49B and is mandatory under Section 203A. Failure to quote TAN on challans attracts a penalty of ₹10,000. The deductor must also use TAN to file TDS returns through the TDS-CPC portal.
Examples
An employer deducting salary TDS quotes TAN on the monthly TDS challan (Form 281) and the quarterly return (Form 24Q).