TAN Full form

TAN stands for Tangent in maths and is used in geometry. The word Tangent has its root in the Latin word “tangere”. The exact meaning of tangere is “to touch”. In general, geometry is a senior topic existing in mathematics. It uses arithmetic principles in measurements and problem-solving. It covers basic topics like curves, angles, straight lines, points, surfaces, distances and other fundamental concepts. It is applied in art, architecture, physics and other phenomena. 

TAN stands for Tax Deduction Account Number in income tax and plays a vital role in toll management. TAN is a number provided by the income tax department. Tax is money that is collected from each and every individual of a nation for the welfare and development of the nation. This is a form of collecting funds for building a stable constitution. 

Tangent

A tangent is a concept in mathematics, it is generally a straight line that touches the surface of the curve. It is an external line that touches the circumference of a circle, curve or sphere. It can be one or many in number. A tangent can be found perpendicular to a radius of a circle. 

Point of Tangency

Point as tangency can be defined as an exact point at which a straight line coincides with the circle, curve or sphere. A straight line is said to abide by tangency only if the point lies in the three areas:

• Point present interior to the circle

• Point present exterior to the circle

• Point present on the circle.

Properties of a Tangent

A straight line crossing a sphere, circle or curve is said to be tangent only if it possesses the below criteria:

• The tangent always makes single point contact with the circle.

• The tangent at the point of tangency is perpendicular to the circle or sphere’s radius.

• It never has two spots where it intersects the circle.

• Equal length is possessed by the tangent that is from the external point of the circle.

Tangent Theorems

The tangent has two theorems. They are:

• Tangent radius theorem: At the point of contact, the radius of the circle and tangent to the circle lies perpendicular to each other..

• Two tangent theorem: When tangents that are two in number are drawn from the circle’s external point, they are of equal length.

Tax Deduction Account Number

Tax Deduction Account Number can sometimes be referred to as Tax Collection Account Number. It is composed of Alphanumeric codes that are 10 in number. It can be obtained through the income tax department. It came into effect after passing the Indian Income Tax Act in 1961. The TAN number is provided to people who deal with both TDS and TCS.

TDS and TCS

TDS stands for Tax Deducted at Source. It is a form of income tax that is reduced even before the service or product is being used. It is the tax that is obtained from or at the point of making raw material or source. This is a form of advance payment of tax. TCS stands for Tax Collected at Source. It is a form of income tax that is imposed on the sellers. It is the tax that a seller collects from their customers during the sale of a product or a service. The income tax act takes charge of the goods that fall under different sets of tax collections.

Structure of a TAN

Tax Deduction Account Number is constructed with a 10 figure alphanumeric number. The TAN is structured as follows:

• The first to fourth digits are made up of alphabets

• The fifth to ninth figures are composed of numbers

• The last tenth digit is the alphabet.

The TAN number signifies the follows:

• 1,2,3 – Jurisdiction code

• 4 – TAN holder’s name initial which comprises the name of an individual, company, institution or corporation.

Relevance of TAN

In 1961, the Income-tax act was established to control the actions relevant to tax and the income tax department. Section 203A of the income tax act gives a detailed explanation about Tax Deducted at Source and Tax Collected at Source. According to the section it is made a compulsion to add TAN to the following documents. They are:

• TDS payment challan

• TCS payment challan

• Financial statements

• TDS statements

• TCS statements

• Reportable account documents

• TDS certificates

• TCS certificates

• Other related documents

Conclusion

Tangent is an element of geometry. It helps to define various functions involved in mathematical problems. It is applied in various other fields like physics, architecture, space, and more. Tax Deduction Account Number is used to collect the tax at the initial point i.e. the source point. It plays a key role in tax deduction and collection. It serves as an important indexing number used by the income tax department.