TAN (which is abbreviated as the Transaction Authentication Number) Number is used by some online banking services. It will in the form of single use one time passwords to authorize the financial transactions. It acts as the second layer security when compared to the traditional single password authentication.
The TAN Number provides the additional security because they act as the two factor authentication. TAN’s can be stolen if it contains the physical document or the token. If you need to login then you should have the TAN number.
FUNCTIONS OF THE TAN NUMBER:
The TAN Number functions as the following:
- First, the bank creates set of TAN’s to the user. In the list there will be 50 TAN’s and each will be six or eight characters long.
- The user gets the list from the nearest bank branch. But, he needs to submit the passport, ID card or any other documents.
- The number can also send through the mail and the password PIN is mailed separately.
- Now, to login the user need to give the username (account number) and password (PIN). So, now users can access their account.
- The transaction is performed only when the user enters the request and the bank verifies the TAN submitted by the user with the list. If it matches, the transaction is processed.
- Now, it will not be recognized for further transactions.
- If the TAN list is compromised, the user can cancel it by giving notification to the bank.
The persons who require to deduct the tax or to collect the tax at the income tax department need to apply for TAN Number. An application for the allotment of TAN is to be filed in the form 49B and submit them at any TIN facilitation centers.