Procedure for allotment of TAN. - Income Tax - 1772/CBDT

INSTRUCTION NO. 1772/CBDT Dated: October 9, 1987 I am directed to say that the Finance Act, 1987 has inserted Section 203A in the Income-tax Act with effect from 1.6.1987. The newly inserted section makes it obligatory for all the persons responsible for deducting tax at source to apply for allotment of "Tax-deduction Account Number" (TAN) and, after getting it, quote the same in the challans, T.D.S. Certificates, periodical returns, etc. The form of application for allotment of TAN (Form No.49B) and related Rules (114A) have already been prescribed vide Notification NO.SO-769(E) dated 12.8.1987. A copy of the Notification is enclosed. It has been decided that in the Metropolitan charges of Bombay, Madras, Calcutta, Delhi, Ahmedabad, Bangalore, Hyderabad and Pune, the TDS work will be centralised with one circle to whom the applications are to be made. 2. With a view to having uniformity in the allotment of TAN it has been decided to follow the procedure outlined here-in-after. 3. The TAN contains the letter and serial number indicating the name of the employer, a check digit, a letter indicating the nature of payment and an abbreviation for the station on the basis standardised by the Indian Railways. It is clarified that - (i) Check digit is the remainder obtained by dividing the serial number of the employer by 7. In order to avoid confusion with the number just preceding the check digit and for easy identification, the seven possible remainders obtained by dividing the serial number have been equated as follows:- 0 ---- A 1 ---- B 2 ---- C 3 ---- D 4 ---- E 5 ---- F 6 ---- G (ii) The letter relatable to the nature of payment will be determined as below:- 1. Salary S 2. Interest on Securities T 3. Dividends D 4. Interest other than Interest on Securities I 5. Winnings from Lotteries L 6. Winnings from 7. Payment to Contractors or Sub-Contractors C 8. Insurance Commission N 9. Other sums F For example, the complete TAN of an employer for deduction of tax at source from 'Salaries' in Delhi will be as follows:- B --- 0042 ---- A(S) -------------------------------- DLI where B--0042 stands for the name and serial number of the employer in the register, 'A' for the check digit arrived at by dividing 0042 by 7, "(S)" for Salaries, and DLI for Delhi. 4. These instructions may be brought to the notice of all officers working under your charge.