Tax Deduction and Collection Account Number (TAN)

TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric number issued to individuals or entities who are required to deduct or collect tax on payments made by them as per the Income Tax Act 1961. TAN is used as an identification number to ensure that the tax deducted or collected by the deductor is appropriately accounted for and deposited with the government. TAN is mandatory for any entity or individual required to deduct or collect tax at source (TDS/TCS) and must be quoted in all TDS/TCS returns, challans, and other related documents.

As per Section 203A of the Income Tax Act of 1961, every organization is required to mention the ten-digit alphanumeric Tax Deduction and Collection Account Number (TAN) in all TDS-related communications. This number is issued by the Income-tax Department to entities enrolled in Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) for the purpose of deducting tax and depositing it on behalf of the government. TAN must be mentioned in all TDS/TCS returns, certificates, and payment challans.

• The TAN consists of ten alphanumeric digits.
• The first four digits are alphabets, while the next five digits are binary digits.
• The final digit is an alphabet.
• The first three alphabets represent the authority codes.
• The fourth alphabet represents the name of the TAN holder, which can be a person, business, or other entity.

• TAN is a lifetime-valid unique number used for making deductions such as wages, interest, and dividends.
• When submitting taxes, TAN is required, and challan type 281 should be used, along with the deductor's name and address.
• The person or business holding TAN provides TDS return certificates which can be used to determine the amount of tax paid and serve as evidence of payment in any complaint.
• TAN information must be included in all tax documents.

• TAN number should be included in all bank transactions related to TDS
• TAN number should be mentioned in all TDS/TCS forms
• HUFs and salaried individuals are not required to obtain a TAN
• Quoting a fraudulent TAN can result in 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.
• Determine if you need a TAN: If you are an employer, deductor, or collector, you must obtain a TAN. You only need to apply for a TAN if you fall under all these categories.
• Fill out Form 49B: To apply for a TAN, you need to fill out Form 49B, which is available online on the NSDL website or can be obtained from TIN-FCs (Tax Information Network Facilitation Centers).
• Provide correct details: Ensure that all the details you provide in the TAN application are accurate, including the name, address, contact information, and PAN of the deductor/collector.
• Choose the right category: Select the correct category of the deductor/collector when filling out the TAN application. The types include company, branch/Division of company, individual, etc.
• Attach necessary documents: Attach the required documents with the TAN application, such as proof of identity, proof of address, and PAN card.
• Pay the fee: Pay the application fee for TAN registration, which is currently Rs. 65 plus taxes.
• Submit the application: Submit the TAN application with all the necessary documents and payment to the NSDL TIN-FC or online through the NSDL website.
• Receive TAN: After processing the application, you will receive your TAN number via email or physical mail.

Offline Mode:

• Submit Form 49B (duplicate) to any Tax Information Network Facilitation Center (TIN-FC) or Form No. INC-32 for non-incorporated corporations
• Find TIN-FC addresses on the NSDL-TIN website.
• Cover the TAN registration costs.
• Deliver duly signed acceptance receipt and a demand draft (DD) or challan made out to NSDL-TIN to NSDL's office address.

Online Mode:

• Access the National Securities Depository Limited (NSDL) department's Tax Information Network (TIN) website
• Select Service > Drop-down Menu > TAN > Apply online > New TAN from the drop-down menu
• Fill out all necessary fields and submit
• Choose the payment method and enter the required information
• Save and print the acknowledgment
• Submit acknowledgment to NSDL as instructed under 'document submission.'

General:

• All bank transactions regarding TDS should contain a TAN number
• TDS/TCS-related forms should appropriately quote TAN numbers
• TAN registration costs should be covered by the applicant
• HUFs and individuals who are paid a salary are exempt from the requirement to obtain TAN
• Section 272BB(1) of the Income Tax return imposes a ₹10,000 fine for quoting a fraudulent TAN
• TAN holders can modify or correct the TAN data on the NSDL official website.

• The signed acknowledgment and DD should be sent to the NSDL address.
• The top of the envelope should have 'Application for TAN' and the acknowledgment number.
• It must reach the NSDL within 15 days of the online application date.
• The application will only be processed after receiving a signed acknowledgment and payment.

To check the status of a TAN application, an applicant can use the 'track status' feature on the Income-tax department's Tax Information Network (TIN) website. The following steps can be followed:

• Go to the official website of NSDL-TIN.
• Select the application type as "TAN - Tax Deduction and Collection Account Number."
• Enter the 14-digit acknowledgment number that was generated during the TAN application process.
• Enter the name of the applicant or the company.
• Fill in the Captcha code.
• Click on the "Show Status" button.
• The status of the TAN application will be displayed on the screen. The status can be one of the following:
• Your application is under process at TIN Facilitation Center.
• Your application is under process at Income Tax Department.
• Your TAN has been allotted, and the TAN certificate is under process.
• Your TAN application has yet to be accepted.
• Your TAN has been assigned, and the TAN certificate has been dispatched.
• Note: It is important to keep the acknowledgment number safe as it is required to track the status of the TAN application.

Alternatively, the applicant can call the TIN Call Center at 020-2721 8080 or send an SMS with the keyword 'NSDLTAN' to 57575 to track the status of their TAN application.

• Seek expert assistance for a hassle-free TAN registration
• Go to the official e-filing webpage of the IT department
• Select the 'Know Your TAN' option
• From the 'TAN Search' menu, choose 'Name' or 'TAN'
• Select the 'Category of Deductor' option
• Enter the required details such as name, state, and registered cellphone number
• Click on 'Continue'
• Enter the OTP that was sent to the registered mobile number in the corresponding screen
• Select 'Validate'
• The screen will display all TAN information
• Download and print the TAN certificate.

• Aadhaar cards or other valid address proofs are accepted
• Applicant's name, address, contact details, and signature must be provided
• LLP or firm incorporation certificate should be submitted
• An acknowledgment slip is generated after filling in the required details
• The acknowledgment receipt must be saved and printed for future reference
• Online payment can be made using credit/debit cards or net banking
• For offline payment, a Demand Draft (DD) or challan with the reference number NSDL-TIN should be sent to the NSDL office.