What is TAN and who needs to obtain it?

TAN (Tax Deduction and Collection Account Number) is a 10-character alphanumeric number that anyone who deducts or collects tax at source must obtain. It is different from PAN: PAN identifies a taxpayer, while TAN identifies the deductor or collector.

You need it if you deduct TDS, for example on salaries, rent, contractor or professional payments, or collect TCS. TAN has to be quoted on TDS challans, TDS returns and TDS certificates. It is applied for online through the Protean (NSDL) TIN facilitation portal using Form 49B. Confirm the details applicable to your case with your CA or tax advisor.