TAN is Tax Deduction and Collection Number. TAN is used by the Income Tax Department to track all payments and filings of persons or entities required to deduct tax at source and pay it to the Government. TAN is a 10 digit alpha numeric number.

It is mandatory for business entities and other type of entities to deduct tax at the source, i.e., while paying rent, salary, etc., and pay the same to the Government. To track these payments, TDS Certificates and TDS Filings, the Government mandates TAN registration for all entities required to deduct tax at source. TDS ensures the responsibility for payment of tax is diversified and the Government receives tax sooner.

Individuals who run a proprietorship business are required to deduct tax at source. All other entities like LLP, Private Limited Company, Limited Company, Trust, Society, etc., are required to obtain TAN and deduct tax at source. Not obtaining TAN when applicable, attracts a penalty of Rs.10,000.

An application for allotment of TAN is to be filed in Form 49B and submitted to any TIN-FC. Addresses of TIN-FCs are available at NSDL-TIN website. Alternatively, you can apply for TAN online at the NSDL-TIN website.

Form 49B is freely downloadable from NSDL-TIN website. It is also available at TIN-FCs. Legible photocopies of Form 49B or forms legibly printed exactly as per the format prescribed by ITD are also allowed to be used.

TAN is allotted by the Income Tax Department on the basis of the application submitted online at NSDL e-Gov -TIN website or to TIN-FCs managed by NSDL e-Gov. NSDL e-Gov will intimate the TAN to the applicant at the address provided in the application.

In case a TAN has already been allotted for the purpose of tax deduction at source (TDS), then no separate application needs to be made for obtaining separate TAN for the purpose of tax collection at source (TCS). The same number can be quoted in all returns, challans and certificates for TCS. However, if no TAN has been allotted, a duly filled in Form 49B, along with the application fees is to be submitted at any TIN-FC.​

If you are submitting the form at a TIN-FC, the TIN-FC will assist you in correctly filling up Form 49B. Incomplete or deficient applications will not be accepted.

A fee of Rs. 55 + Goods and Service tax (as applicable) should be paid as processing fee at the TIN-FC at the time of submitting Form 49B.

An allotment letter is dispatched by NSDL e-Gov at the address provided in Form 49B.

You can inquire the status of your application by accessing NSDL e-Gov -TIN website at the “Status track” option and quoting your unique 14-digit acknowledgement number after three days of your application date.

Any change or corrections in the data associated with the TAN, should be communicated to ITD by filing up ‘Form for Changes or Correction in TAN data for TAN allotted’ alongwith the necessary fees at any of the TINFCs, or at NSDL e-Gov-TIN website.

Change of address within a jurisdiction does not change the TAN. However, it may involve a change in the Assessing Officer. Such changes must, therefore, be intimated to ITD so that the TAN database of ITD can be updated. In case of change of address from one jurisdiction to other, a new TAN needs to be applied for and previous TAN needs to be surrendered on allotment of fresh TAN.

In case duplicate TAN(s) have been allotted to a person, then the TAN which has been used regularly should be used. The other TAN(s) should be surrendered for cancellation.

No, PAN cannot be quoted where TAN is required. PAN and TAN serve two different purposes. Therefore, it is mandatory for those deducting tax at source to obtain a TAN.

Any entity cannot have two or more TAN. It is illegal for an entity to possess more than one TAN.

Yes. The name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN.

Tax Deducted at Source (TDS) must be deposited through banks using Challan 281 quoting the TAN number of the entity. The deadline for payment of TDS is the 7th day of each month.

TDS Return should be filed quarterly on the 15^th day of July, October, January and May. The TDS return filed on these months will correspond to the transaction of the preceding three months. Delay in furnishing e-TDS statement will result in a mandatory penalty of Rs. 200 per day, with the total fees not exceeding the total amount of TDS made for the quarter.

TAN Registration can be obtained in 5-10 working days from date of application along with the required documents.