TAN is the Tax deduction and collection account number, which happens to be a 10 digit number issued by the income tax department to every individual as well company, which cash out payments to others. When a company undertakes a payment procedure, tax is subtracted from the company’s side (it is actually tax deduction at the source). It is then put in a government account by the tax department of India. Whichever companies that subtract this tax amount need to possess a TAN number recognizing them.?It is quite similar to the PAN number which is issued by the government to the citizens of the country.