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TAN registration is very important for business. TAN stands for Tax Deduction and Collection Account Number. It is ten digit alpha numeric number. TAN allotted to those who are supposed to deduct at sources of TDS. TAN number or registration is very important for businesses deducting tax at source and mandatory to be parroted in TCS and TDS return. Failure to do so may attract a heavy penalty of up to Rs. 10,000. TDS returns and payments will not be received by banks if TAN is not quoted.