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Tax Deduction and Collection Number (TAN)
TAN or Tax Deduction and Collection Number (TAN) is mandatory 10-digit alphanumeric number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government’s collection of tax is proposed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government – quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs. 1,80,000 per year, etc. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax.
To obtain TAN, application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN will be allotted to the entity and the entity must quote the TAN in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates.
ComplianceIndia can help you obtain your TAN registration quickly and hassle-free.
Advantages of TAN Card
Authenticated login area
Easy in receiving communication from IT Department regarding TCS and TDS from the database of updated active TAN details.
Benefits to download the latest Input file (FVU) for the purpose of preparing correction statement and can verify the challan status online.
The deductor can receive a statement showing the status of tax deducted at source (TDS)
Reconciliation of tax deducted at source (TDS) to TAN holder with regards to Section 200A.
Deductor can easily upload e-TDS returns online
Liable to apply for TAN Card
All those who are required to deduct or collect tax at source on behalf of the Income Tax department need to apply and obtain the 10-digit alphanumeric TAN.
Requirement of TAN Card
– Mandatory for deduction of tax [TDS] and Collection of Tax [TCS]
– TDS certificate and filing
– Payment on transfer of certain immovable property other than agricultural land Section 194IA
How we Work?
Documents required for Application of TAN Card
Our charges for application of TAN Card Application starts from Rs. 999/-.
Frequently Asked Questions
1. What is TAN?
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.
2. Why is TAN required?
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.
3. Who must obtain TAN?
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.
4. What is the procedure for submission of document?
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.
5. From where can I obtain Form 49B?
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.
6. Who allots the TAN?
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.
7. Is a separate TAN required to be obtained for the purpose of tax collection at source (TCS)?
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.
8. What if incomplete form 49B is submitted?
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.
9. Are there any charges to be paid while submitting application for TAN?
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.
10. How will the new TAN be intimated to the applicant?
An allotment letter is dispatched by NSDL e-Gov at the address provided in Form 49B.
11. How can I enquire about the status of my application?
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.
12. How can the change in address or details on the basis of which TAN was allotted be communicated to Income Tax Department?
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.
13. If I change my address, should I inform ITD or should I apply for a new TAN?
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.
14. In case duplicate TAN has been allotted, which TAN should be used?
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.
15. Can I use a PAN instead of TAN?
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.
16. Can an entity have two or more TAN?
Any entity cannot have two or more TAN. It is illegal for an entity to possess more than one TAN.
17. Can branches of companies/ banks have separate TANs?
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.
18. When and where should the tax deducted at source be deposited?
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.
19. When should I file TDS Returns?
TDS Return should be filed quarterly on the 15th 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.
20. How long does it take to obtain a TAN?
TAN Registration can be obtained in 5-10 working days from date of application along with the required documents.