Tax Deduction and Collection Account Number (TAN)

A Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric code issued by the Income Tax Department of India. It is essential for businesses and individuals responsible for deducting Tax Deducted at Source (TDS) or collecting Tax Collected at Source (TCS). Without a TAN, entities cannot deposit TDS or TCS with the government, and failure to obtain one may result in penalties. The registration process is straightforward, requiring applicants to submit Form 49B online or offline through authorized centers.

TAN registration ensures compliance with tax regulations and smooth financial transactions for businesses. Once obtained, the TAN must be quoted in all TDS/TCS-related documents, including returns, challans, and certificates. The process of verification and correction of TAN details is also crucial for businesses to avoid legal complications. Understanding the significance of TAN helps businesses streamline their tax obligations and operate within regulatory frameworks.
 

TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric code issued by the Income Tax Department of India. It is mandatory for businesses and entities responsible for tax deduction at source (TDS) and tax collection at source (TCS) under the Income Tax Act, 1961. TAN must be quoted in all TDS/TCS filings, challans, and certificates. Businesses can apply for TAN online via Form 49B on the NSDL website. Failure to obtain a TAN can result in a penalty of ₹10,000. It helps streamline tax compliance and ensures smooth processing of TDS/TCS returns.

• Mandatory for TDS/TCS: Businesses liable for TDS deductions must obtain TAN.
• Legal Compliance: Section 203A mandates quoting TAN in TDS filings, challans, and certificates.
• Required for Financial Transactions: Banks require TAN for TDS payments.
• Lifetime Validity: Unlike PAN, TAN remains unchanged even if a business undergoes restructuring.

Avoiding Penalties: Failure to quote TAN in TDS/TCS returns can lead to a penalty of ₹10,000 under Section 272BB(1).

• Unique and Lifetime Valid: Once issued, TAN remains valid indefinitely.
• Essential for Tax Deductions: Used for deductions on wages, interest, dividends, and other incomes.
• Required for Tax Payments: TAN must be mentioned in Challan 281 when submitting TDS payments.
• Facilitates Tax Compliance: TAN holders issue TDS certificates, helping taxpayers track the amount of tax paid.
• Acts as Proof of Payment: Taxpayers can use the TDS certificate as evidence in case of disputes.
• Mandatory for All Tax Documents: TAN must be included in all TDS-related documents.

The Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric code assigned to entities responsible for deducting or collecting tax at source (TDS/TCS). Understanding the TAN structure is crucial for businesses applying for TAN registration online and ensuring tax compliance.

Breakdown of TAN Structure

1. First Four Characters: These are alphabets. The first three letters represent the authority code of the jurisdiction where TAN is issued. The fourth letter corresponds to the first letter of the TAN holder’s name, whether an individual, business, or entity.
2. Next Five Characters: These are numerical digits (binary) that are system-generated and unique for every TAN.
3. Last Character: The final digit is an alphabet, acting as a checksum for verification purposes.

When applying for a TAN number, businesses and individuals must ensure accuracy in the details provided. TAN registration online requires submission of Form 49B and supporting documents. A valid TAN is mandatory for filing TDS returns, issuing TDS certificates, and making TDS payments through Challan 281.

Obtaining a TAN number is essential for businesses and entities responsible for Tax Deduction at Source (TDS) and Tax Collection at Source (TCS). Below is a checklist to ensure a smooth TAN registration online process.

Key Requirements for TAN

• The TAN number must be included in all TDS-related bank transactions and TDS/TCS forms.
• HUFs and salaried individuals are not required to obtain a TAN.
• Quoting an incorrect or fraudulent TAN can lead to a fine of ₹10,000 under Section 272BB(1) of the Income Tax Act.
• TAN holders can modify or correct their TAN data through the NSDL official website.

To successfully apply for TAN online or offline, the following documents are required:

• Identity Proof – Aadhaar Card, Passport, Voter ID, or any government-issued ID.
• Address Proof – Utility bill, bank statement, rental agreement, or any official address document.
• PAN Card – Required for individuals and entities applying for TAN registration online.
• Certificate of Incorporation – Applicable for companies, LLPs, or partnership firms.
• Form 49B – A duly filled and signed TAN application form.
• Payment Receipt – Acknowledgment receipt generated after TAN application online.

Step-by-Step Guide to Apply for TAN Online

1. Visit the NSDL Website
   
   • Go to the official NSDL TIN (Tax Information Network) portal.
   • Select the option for TAN application online.
2. Choose the Correct Form
   
   • Click on Form 49B, which is required for a new TAN application.
3. Fill in the Required Details
   
   • Provide details such as:
     • Name of the applicant (Company/Business/Individual)
     • PAN number of the deductor/collector
     • Contact information (Address, Phone Number, Email)
     • Category of the deductor (Company, Branch, Firm, etc.)
4. Verify and Submit the Form
   
   • Double-check the details before submission to avoid errors.
   • Submit the TAN application form online.
5. Make the Payment
   
   • Pay the TAN registration fee, which is ₹65 plus applicable taxes.
   • Payment can be made through net banking, debit/credit card, or demand draft.
6. Receive the Acknowledgment
   
   • After submission, you will receive a 14-digit acknowledgment number.
   • Use this number to track your TAN application status.
7. TAN Allotment
   
   • Once approved, the TAN number will be sent via email and physical mail to the registered address.

Applying for a TAN online ensures quick processing and compliance with TDS and TCS regulations.

Step-by-Step Guide to Apply for TAN Offline

1. Obtain Form 49B
   
   • Collect Form 49B from the nearest TIN-FC office or download it from the NSDL website.
2. Fill in the Required Details
   
   • Enter the necessary details, including:
     • Name and category of the deductor (Company, Firm, Individual, etc.)
     • PAN details of the deductor/collector
     • Contact information (Address, Phone Number, Email ID)
3. Attach Necessary Documents
   
   • Ensure all required documents are included, such as proof of identity, proof of address, and PAN card copy.
4. Pay the TAN Registration Fee
   
   • The application fee is made..
   • Payment can be made via Demand Draft (DD) or cash at the TIN-FC office.
5. Submit the Application
   
   • Submit the duly filled Form 49B along with documents and the payment receipt at the nearest TIN-FC office.
6. Receive TAN Number
   
   • Once the application is processed and verified, the TAN number will be dispatched via post to the registered address.

If there is an error in your TAN registration or if your business details have changed, you can modify or correct your TAN number through the NSDL website or offline.

Steps to Modify or Correct TAN Online

• Visit the NSDL Website – Go to the official TAN registration online portal.
• Select TAN Correction Form – Click on the “Change or Correction in TAN Data” option.
• Fill Out the Form – Enter your TAN number, business name, address, and updated details.
• Attach Supporting Documents – Provide identity proof, PAN card, and updated address proof.
• Make Payment – Pay the modification fee using credit card, debit card, or net banking.
• Submit the Form – After submission, an acknowledgment slip is generated for tracking.

Steps to Modify TAN Offline

• Obtain Form for TAN Correction from the TIN-FC (Tax Information Network Facilitation Center).
• Fill in the required corrections and attach valid supporting documents.
• Submit the form along with the processing fee at the nearest TIN-FC office.
• Receive an acknowledgment receipt to track the status of the correction request.

Once verified, the corrected TAN number will be issued. 

• TAN is Mandatory for TDS/TCS – All businesses and entities responsible for tax deduction at source (TDS) or tax collection at source (TCS) must have a TAN number.
• Exemption for Salaried Individuals – If you are a salaried individual and do not deduct tax on behalf of others, you are not required to apply for TAN.
• Penalty for Non-Compliance – Failure to quote TAN in TDS/TCS returns or transactions can result in a penalty of ₹10,000 under Section 272BB(1) of the Income Tax Act.
• TAN vs PAN – TAN is different from PAN, and they should not be used interchangeably. PAN is for tax identification, while TAN is for tax deduction/collection.
• Flexible Application Methods – You can apply for TAN online via the NSDL website or choose the offline method by submitting Form 49B at a TIN-FC office.

Filing Buddy offers a hassle-free, efficient, and reliable solution for TAN registration. Whether you need to apply for a new TAN, update existing details, or resolve compliance issues, Filing Buddy ensures a seamless process with expert guidance.

Benefits of Choosing Filing Buddy

• Quick & Easy Application – We handle the entire TAN application process, saving you time and effort.
• Expert Assistance – Our professionals guide you through the documentation and form-filling process, ensuring accuracy.
• Error-Free Filing – Mistakes in TAN applications can lead to rejections or delays. We ensure 100% compliance with Form 49B requirements.
• End-to-End Support – From document verification to submission and tracking, we assist you at every step.
• Affordable Pricing – Get cost-effective TAN registration services with transparent pricing and no hidden charges.
• Faster Processing – We coordinate with authorities to expedite the approval process, ensuring you receive your TAN number quickly.

With Filing Buddy, you can apply for TAN online or offline effortlessly, ensuring compliance with TDS/TCS regulations without unnecessary delays. 

Obtaining a TAN number is essential for businesses and entities involved in tax deduction at source (TDS) or tax collection at source (TCS). Ensuring compliance with Income Tax Act regulations not only avoids penalties but also streamlines financial transactions.

At Filing Buddy, we simplify the TAN registration process by offering expert guidance, hassle-free documentation, and quick processing. Whether you need to apply for a new TAN, update existing details, or seek compliance assistance, our team ensures a smooth and efficient experience. Choose Filing Buddy for reliable, accurate, and stress-free tax solutions.

1. What is TAN, and why is it required?
TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department. It is mandatory for businesses and entities responsible for tax deduction at source (TDS) or tax collection at source (TCS).

2. How can I apply for a TAN number?
You can apply TAN online through the NSDL website by submitting Form 49B and paying the applicable fee. Alternatively, you can apply offline by visiting a Tax Information Network Facilitation Center (TIN-FC).

3. What is the process for TAN registration online?
To complete TAN registration online, visit the NSDL-TIN portal, fill out Form 49B, submit required documents, pay the registration fee, and track your application status.

4. Can individuals apply for a TAN?
TAN registration is not required for salaried individuals unless they are responsible for deducting or collecting TDS/TCS. It is mainly for businesses, firms, and organizations.

5. How long does it take to receive a TAN number?
After applying for TAN registration online, it usually takes 5-10 business days for the Income Tax Department to issue the TAN number.

6. What documents are required for a TAN application online?
The documents required for TAN application include:

• Aadhaar card or government-issued ID
• PAN card of the applicant/entity
• Proof of address (utility bill, bank statement, rental agreement)
• Certificate of Incorporation (for businesses, LLPs, or firms)
• Duly filled Form 49B

7. What is the fee for TAN registration?
The TAN registration fee is ₹65 plus GST, payable online via net banking, credit/debit card, or UPI. Offline applicants can pay via demand draft (DD) or challan at a TIN-FC office.

8. Can I apply for TAN offline?
Yes, for TAN apply offline, obtain Form 49B from a TIN-FC, fill in the details, attach documents, pay the fee via demand draft (DD) or cash, and submit the application.

9. How can I check my TAN application status?
Visit the NSDL-TIN website, enter your application number, and track your TAN registration status online.

10. What happens if I forget to mention my TAN in TDS returns?
Failing to quote TAN in TDS/TCS forms can result in a ₹10,000 penalty under Section 272BB(1) of the Income Tax Act.

11. How can I modify or correct my TAN details?
You can update TAN registration details such as name, address, or contact information by submitting a correction request on the NSDL-TIN portal or at a TIN-FC center.

12. Is it possible to surrender a TAN number?
Yes, if a business or entity no longer requires TAN registration, they can surrender it by submitting a request to the Income Tax Department with proper documentation.

13. Why choose Filing Buddy for TAN registration?
Filing Buddy simplifies the TAN application online process by offering expert assistance, document verification, and hassle-free submission to ensure quick approvals.

14. How does Filing Buddy help with TAN registration online?
Filing Buddy provides end-to-end support for TAN registration, including form submission, document review, payment processing, and application tracking, ensuring a smooth and error-free process.

15. Can Filing Buddy assist in correcting or updating TAN details?
Yes, Filing Buddy can help you modify or correct TAN details such as name, address, or entity type through the NSDL portal, ensuring compliance with tax regulations.