Income-tax Act Section 203A: TAN Mandatory for Tax Deduction at Source; Centralized TDS in Major Cities.

The Finance Act, 1987 introduced Section 203A in the Income-tax Act, mandating that individuals responsible for deducting tax at source must apply for a Tax-deduction Account Number (TAN) and use it in relevant documentation. The application form (Form No.49B) and associated rules have been established. In major metropolitan areas, the TDS work is centralized to specific circles. The TAN includes a letter and serial number, a check digit, a letter indicating payment nature, and a station abbreviation. The check digit is derived from the employer's serial number divided by seven. Specific letters represent different payment types, such as salaries or dividends.

---

---

---