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How To Do TAN Verification? Learn Complete Tutorial Here

All individuals who are required to collect or deduct tax at the source must obtain a Tax Deduction and Collection Account Number (TAN). As a result, it is critical to understand TAN Verification and how its authenticity can be verified. In this article, we'll go over how to verify a TAN number, as well as online TAN verification.

What Is TAN?

The acronym TAN stands for Tax Deduction and Collection Account Number. The Income Tax Department issues a 10-digit alphanumeric number. TAN must be obtained by all individuals who are responsible for deducting tax at source (TDS) or collecting tax at source (TCS). If you are a salaried individual, you will find your employer’s TAN in your monthly pay slips or the annual Form 16 document.

TAN assists the government in monitoring and tracking employers who deduct TDS and TCS from their employees. It is made up of ten digits and alphabets, with each letter representing something different.

Also Read : PAN Card - Permanent Account Number (PAN) in India

A TAN number is built using the following formula: alphabets, five numbers, and an alphabet at the end, with each component having a significance as listed below. The first three letters represent the jurisdiction, while the fourth alphabet represents the first letter of the TAN holder's name. The final alphabet is a random letter with no meaning. For example, Mr Kashyap's TAN number from Chennai is CHECK 12345 M.

Why Is TAN Important?

The TAN is required in all TDS cases. The number must be mentioned in all communications with India's IT department. If you do not obtain a TAN, you will be fined Rs.10,000. Furthermore, if the TAN is missing, the banks will not receive any TDS returns or payments.

According to Section 203A of the Income Tax Act of 1961, every TAX deductor is required to include the TAN number in all of the documents listed below. Banks will not accept TDS/TCS payments unless the TAN is quoted. TDS will not be refunded if the TAN is not provided.

  • Statements of TCS
  • Statements of TDS
  • Annual Information Report
  • Certificates of TDS/TCS
  • Payment of TDS/TCS Challan
  • Other documents as required by the IT dept.

You can apply and get TAN both online and in person. You need to use the application form 49B, which is available on the Protean eGov Technologies Limited website under ‘Apply for PAN Online’. Submit it and follow the payment instructions. Offline application for TAN can be submitted at your nearest TIN-FC centers.

TAN Verification Process

TAN verification on the income tax portal using TAN number

This is the simplest method to verify TAN –

1. Select "Know Your TAN" from the dropdown menu under the "Services" tab.

2. Choose a Deductor Category. You can select from the following options:

3. Central and state governments, statutory bodies, autonomous bodies, and local governments

4. Firms/Companies/AOP/BOI/AJP/AOP(Trust) and Branches

5. Individuals and HUFs, including businesses

6. You can then search by Name or TAN.

7. Enter your name or the TAN number, whichever you prefer.

8. Fill in the captcha code that appears onscreen.

9. To generate your results, click "Submit."

TAN Verification Using TAN Holder’s Name

If you do not have the TAN number handy, you can search using the TAN deductor’s name too –

1. Click on the 'Know Your TAN | AO' tab on the Income Tax Department's e-filing website.

2. Enter your User ID and password to access the website.

3. Select the 'Name' option from the 'TAN Search' tab.

4. Choose the Deductor category from the drop-down menu.

5. Choose the respective State from the drop-down menu.

6. Enter the deductor's name and registered mobile number. Choose the correct company from the drop-down menu of names.

7. Onscreen, the TAN details associated with the deductor's name will be displayed.

8. Also Read: Income Tax

Also Read: Income Tax

Benefits Of TAN Registration And Verification

  • Deductors can easily receive communication from the Income Tax Department regarding Tax collected at source (TCS) and Tax Deducted at Source (TDAS) using the database of updated active TAN details (TDS)
  • Every deductor will have a secure login area.
  • Deductors will also have the following provisions or benefits, including the ability to download the most recent Input file (FVU) for the purpose of preparing a correction statement and checking the challan status online.
  • Reconciliation of tax deducted at source (TDS) to TAN holders with regard to Section 200A is available to the deductor.
  • Tax deducted at source (TDS) returns can be easily uploaded online by the deductor.

End Note: It is important to know who deducts tax on your income. The TAN number mentioned on your tax statement helps you identify the deductor and why tax has been deducted. Also, with an identity number given to each tax deductor, the income tax department is assured that the collected tax is remitted to the department diligently.

FAQs

1. How can I verify my TAN number?

You can verify your TAN number on the income tax e-filing portal. Click on the ‘Know Your TAN’ option, enter your TAN number, and the details are displayed.

2. What is the full form of TAN and what is its importance?

The Tax Deduction and Collection Account Number (TAN) is a ten-digit alpha-numeric code assigned by the Income Tax Department to all entities in charge of collecting or deducting taxes.

3. Why is TAN required?

Individuals must have TAN because Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centers without it. Banks will not accept challans for TDS/TCS payments if the TAN is not specified.

4. How do I obtain a TAN?

You can apply for a TAN both online and in person. Fill out the application form 49B, which is available on the Protean eGov Technologies Limited website under Apply for PAN Online. Submit it and follow the payment instructions. You can apply offline at TIN-FC centers.

5. I've got a PAN number. Is a TAN required, or can I simply provide the PAN number?

PAN cannot be used in place of TAN. The two numbers serve two distinct functions. The TAN is intended for individuals who collect Tax Deducted at Source for the IT department. Individuals, businesses, and other entities can use the PAN Card to pay their taxes.

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