What is TAN (Tax Deduction and Collection Account Number)? How to read and understand TAN? What is structure of TAN?

TAN stands for Tax Deduction and Collection Account Number, it is 10 digit Alpha Numeric number allotted by Income Tax Department.

A person who is liable to deduct TDS (Tax Deducted Source) and then required to deposit the same to IT department need this number. It is like you file Income tax returns for PAN, in same way a person who need to deposit TDS deducted as required under IT act for unique identification number. Based on this number, the person whose TDS is deducted can claim credit of said taxes in their Income tax returns (for more refer 26AS - Tax credit statement)

1st 3 Digit	Next 1 digit	Next 5 digit	Next 1 digit
It is State or City Code	First letter of Name	Sequential running number allotted by System	Alphabet which is check digit generated by System
E.g. MUM for Mumbai AHM for Ahmedabad	E.g. K for Knowledge Private Limited	E.g. 12456	E.g. Z or Say any letter

E.g. MUMK12456Z will be TAN or Tax Deduction and Collection Account Number

Also Refer:

PAN or Permanent Account Number Structure

http://knowledgekhan.blogspot.in/2017/01/what-is-pan-permanent-account-number.html

CIN or Corporate Identification Number Structure

http://knowledgekhan.blogspot.in/2017/01/how-to-read-and-understand-cin-or.html

STC or Service Tax Registration Number 
http://knowledgekhan.blogspot.in/2017/01/what-is-service-tax-registration-number.html



Excise Registration Number
http://knowledgekhan.blogspot.in/2017/01/what-is-excise-registration-number-what_20.html 

TIN or Taxpayer Identification Number
http://knowledgekhan.blogspot.in/2017/01/what-is-tin-or-taxpayer-identification.html