Tax Deduction Account Number or Tax Collection Account Number is a 10-digit Alphanumeric number issued by the Income-tax Department (we will refer to it as TAN) TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
- 1. First 4 digits of TAN are alphabets, the next 5 digits of TAN are numeric and last digit is an alphabet. First 3 alphabets of TAN represent the jurisdiction code, 4th alphabet is the initial of the name of the TAN holder who can be a company, firm, individual, etc.
- 2. For example, TAN allotted to Mr. Mahesh of Delhi may appear as under DEL M 12345 L
- 3. TAN is very useful and important for the businesses deducting tax at source.