What is TAN number and how to find TAN number of SBI?

We have all seen PAN (Permanent Account Number) and what it stands for. Similarly to PAN, another 10-digit alphanumeric unique number called TAN is issued by the Income Tax Department of India. In this article, we will learn about the TAN number and its similarities and dissimilarities with PAN, which is required to have a TAN number and finally, we will also learn how one can find SBI’s TAN number.

SBI Tan Number
This is a snippet of how the assessee will enter company details along with the TAN Number.

PAN is an important legal document issued by the Income Tax Department. Every citizen must have to conduct large financial transactions or perform any other essential tasks or verifications. PAN is a 10-digit alphanumeric number which is unique to every card holder.

What is TAN Number?

Like PAN Number, TAN is a 10-digit alphanumeric number unique to its holder. Everyonneedn’t’t necessarily has a TAN just like PAN. TAN is mandatory for those registered businesses and organizations who deduct TDS (Tax Deducted at Source) on transactions. Simply put, companies which deduct TDS on payment of salaries to their employees and, in turn, pay the TDS to the government must have a TAN number. TAN stands for Tax Deduction and Collection Account Number.

PAN NumberTAN Number
Pan stands for Permanent Account NumberTAN stands for Tax Deduction and Collection Account Number
You will get it in a physical card formatIt is not in a physical card, and it is just an alphanumeric code
It is used at the time of preparation and submission of Income tax Returns.TAN is used at the time when a person responsible for deducting tax, TDS challan payment, TDS return, TCS return
The application form for PAN is 49A in the case of Indians and 49AA in the case of foreigners.The application form for TAN is 49B

According to the mandate of the Income Tax Department, every business entity that avails a service from someone or does a transaction has to deduct TDS or TCS (Tax Collection at Source). This deducted amount must be deposited with the government at specified banks, and a return also needs to be filed in this regard. Therefore TAN is required for any business or organization that wants to deduct TDS or make TDS collection payments.

As per section 203A of the Income Tax Act, 1961, it is mandatory for the assessee liable to deduct TDS to quote this TAN number in all communications regarding TDS with the Income Tax Department, and failure to do so attracts a penalty of Rs. 10,00The banks would not receive TDS Returns, and the Payments TAN number is not quoted. This number is required when one seeks challans for TDS or TCS payments: without it, one cannot procure these documents.

Difference Between Pan and TAN number
This image above shows the difference between a PAN and a TAN

Breakdown of a TAN Number

Now let us closely look at a TAN number. Here is an example of a TAN number, NGPO02911G. The first 3 characters represent the city or state where the TAN was issued. In the above-given number, NGP represents the city of Nagpur. The TAN’s fourth character is the tax deductor’s initial letter. Which means the name of the tax deductor starts with this letter. The following 5 numeric characters are system-generated numbers from 00000 to 9999. The last character is an alphabetic check digit which is also system generated.

Breakdown of a TAN Number

Exceptions, where TAN need not be produced

There are also some exceptions where TDS must be deducted, but TAneedn’t’t is produced. They are under sections,

  • Sec 194IA: TDS is deducted on the purchase or sale of immovable property
  • Sec 194IB: Rent paid above Rs. 50,000
  • Sec 194M: Payment made to the contractor, brokerage and commission paid, or payment of professional fees which sum up to more than Rs. 50 Lakh during the year.

Apart from these exceptions, if TDS or TCS is collected, the TAN number becomes mandatory. Get more details about SBI and SBI bank accounts. Click Here

How can one obtain TAN?

TAN numbers can be obtained in both online and offline modes. For a deductor to get a TAN number online in SBI, he or she can do so from this website. On submission of required details, an acknowledgement number will be generated, and the applicant must obtain the same print. The acknowledgement must be signed in by an individual or contain a seal.

In the offline mode, an application for the allotment of TAN shall be made in duplicate in Form No. 49B at any TIN Facilitation Centres. Addresses of the TIN-FC are available on the NSDL-TIN website.

How to find the TAN Number of SBI?
The above figure shows a screenshot from the online portal while applying for TAN.

How to find the TAN Number of SBI?

  • First, visit the Income Tax Department of India’s official website, www.incometaxindiaefiling.gov.in/home and click on the ‘Know your TAN’ link.
Know your TAN

Now select TAN search by name, the first option in the category, state that the SBI branch belongs to, type State Bank of India in the name field, enter your mobile number and click on continue.

Find your tan number in sbi online

A 6-digit mobile PIN will be sent to your mobile number by the income tax department. Enter the PIN and click on validate.

OTP to view tan number in SBI

Now you will get a list of SBI branches for your state. To know the TAN number, click on the branch name of your choice. TAN for your SBI branch and many other details will be displayed on the screen.

Tan number displayed in the screen

Conclusion

So in this above article, we learnt about what a TAN Number is, compared it with the PAN number and also learnt where it must be put into use, how to apply for it, and finally, we also learnt the steps one can follow to check up the TAN number of the desired SBI branch.

You can also check ‘how to close an SBI bank account.’

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