In this article, we’re answering “What is a TAN number?” To avoid any confusion, we’re specifically looking at the Tax Deduction and Collection Account Number that is issued by the Income Tax Department in India.
This is an important document for non-resident Indians (NRIs) who are engaging in financial transactions in the country.
This is part of our free series on banking in India, covering topics like opening an NRI bank account, which you can access here
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Is TAN Number?
- Who Is Required to Obtain a TAN Number?
- What Is the Difference Between TAN, PAN and TIN?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
What Is TAN Number?
A TAN number is a unique identifier issued by the Income Tax Department in India. It stands for Tax Deduction and Collection Account Number and is a required number for anyone that is responsible for Tax Deduction at the Source (TDS) or Tax Collected at Source (TCS) on behalf of the Income Tax Department.
While the PAN Card may replace the use of a TAN in certain instances for individuals, the two identifiers are used in different situations. This is especially true for Non-Resident Indians (NRIs).
What Is the Purpose of a TAN?
The purpose of a TAN number is to facilitate the acceptance of Tax Deducted at Source and Tax Collected at Source returns on behalf of the Income Tax Department. It is a different identifier than the Permanent Account Number (PAN) or Tax Identification Number (TIN) and is required for anyone meeting the criteria.
Who Is Required to Obtain a TAN Number?
A TAN number is required for both individuals and businesses that deduct tax at the source (TDS) or collect tax at the source (TCS). That said, in certain instances, individuals can use a PAN instead of a TAN, though this is only applicable in specific circumstances where a TAN is not required.
Application Process for Applying for a TAN Number
The application process for applying for a TAN number can be completed online through the government’s NSDL e-Gov-TIN portal.
The first step is collecting all of the necessary documents, including an Adahar Card, PAN Card, and proof of address.
Next, you will select the method of application you want to complete, such as “online application” and choose “New TAN” as your type of application.
You will then need to select the category of TAN that you are applying for and then complete the corresponding form.
After your application is submitted, you can continue to use the NSDL e-Gov-TIN portal to monitor the progress of your TAN application.
What Is the Difference Between TAN, PAN, and TIN?
The main difference between TAN, PAN, and TIN in India are the reasons why these numbers are issued, how they are used, and who actually uses them. We’ll discuss the specific similarities and differences between TAN, PAN, and TIN below for your consideration.
TAN is the abbreviation of the Tax Deduction and Collection Account Number which is obtained by individuals and companies that deduct or collect tax at sources, referred to as TDS and TCS. The TAN number is 10 characters long and is issued by the Income Tax Department of India.
PAN is the abbreviation of Permanent Account Number which is obtained by every taxpayer in India. Like the TAN, the PAN is a 10 digit number that is issued by the Income Tax Department to any individual carrying out transactions or obligated to pay income tax in the country.
TIN is the abbreviation of Tax Identification Number. Unlike the TAN and PAN, the TIN is issued by the Commercial Tax Department of each state government. Unlike other countries, TIN specifically refers to the tax identification number for individuals and entities engaged in business. It is also known as a Value Added Tax number, a Central Sales Tax number, or simply a Sales Tax number.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into what a TAN number is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Can I Find My TAN Number?
If you have previously obtained a TAN number but no longer have it available, you can visit the government website and select “Know Your TAN”.Then you can select “TAN Search” and proceed to follow the instructions, including inserting your state, name, and mobile number.
Who Uses TAN Numbers?
TAN numbers are used by both individuals and businesses who are responsible for Tax Deduction at the Source (TDS) or Tax Collected at Source (TCS) on behalf of the Income Tax Department.
How Do I Activate My Old TAN Number?
If you previously obtained a TAN number, you do not need to activate your number. This is because a TAN number is issued with lifetime validity. That said, if you have lost your TAN you can retrieve it through the government website. You will need to provide unique information, including name, state, phone number, and more.
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