TAN(TAX DEDUCTION AND COLLECTION ACCOUNT NUMBER)

TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.

As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department and should be paid to the Government at the specified and regular intervals which can be done only when TAN is available with deductor. TDS certificates should be issued by deductor to the payee (deductee) for which TAN is essential.