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TAN Registration
 

In India, TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric number issued by the Income Tax Department (ITD) to all persons who are responsible for deducting Tax at Source (TDS) or collecting Tax at Source (TCS).

 

Why is TAN important?

  • Mandatory for TDS/TCS operations: If you are required to deduct or collect tax at source under the Income Tax Act, 1961, obtaining a TAN is legally mandatory.

  • Quoting in documents: TAN must be quoted on all TDS/TCS challans, statements (returns), and certificates issued. Without a TAN, banks will not accept TDS/TCS challans, and TDS/TCS returns will not be processed by the Income Tax Department.

  • Avoiding penalties: Failure to obtain a TAN or quoting an incorrect TAN can lead to significant penalties (up to ₹10,000) under the Income Tax Act.

  • Compliance: It ensures proper tracking and reporting of tax deductions and collections, contributing to better tax administration.

 

Who needs to obtain TAN?

Any person (individual, company, firm, government department, association of persons, etc.) who is responsible for deducting or collecting tax at source needs to obtain a TAN. This includes:

  • Employers deducting TDS on salaries.

  • Businesses deducting TDS on payments to contractors, professionals, rent, interest, etc.

  • Entities collecting TCS on specific goods (e.g., scrap, timber, alcoholic liquor for human consumption).

Exception: Individuals or HUFs who are required to deduct TDS under Section 194-IA (TDS on sale of immovable property), Section 194-IB (TDS on rent by individuals/HUFs), or Section 194M (TDS on payment to contractors/professionals by individuals/HUFs exceeding ₹50 lakhs) can quote their PAN instead of TAN. However, for all other TDS/TCS purposes, TAN is mandatory.

 

TAN Registration Process:

The application for TAN is made using Form 49B. You can apply for TAN both online and offline.

1. Online Application Process (Recommended):

This is the most common and efficient method.

  • Visit the NSDL TIN website: Go to the official TIN-NSDL (now Protean eGov Technologies Limited) website for TAN applications: https://tin.tin.nsdl.com/tan/

  • Select "Online Application for TAN (Form 49B)": On the homepage, click on this option.

  • Select Category of Deductors: Choose the appropriate category (e.g., Company, Individual/HUF, Government, Firm, etc.) from the dropdown menu and click "Select."

  • Fill Form 49B: The online Form 49B will appear. Fill in all the mandatory details accurately, including:

    • Category of Deductor

    • Name of Deductor/Collector (as per registration documents)

    • Address

    • Contact details (mobile number, email ID)

    • Assessing Officer (AO) details (Area Code, AO Type, Range Code, AO Number). If you don't know this, you can use the "AO Code Search" facility on the NSDL website or contact the Income Tax Department.

    • PAN of the deductor/collector (mandatory).

  • Review and Confirm: Carefully review all the entered information for accuracy.

  • Make Payment: Pay the application fee online. The fee is usually ₹65 (₹55 application charge + 18% GST), which is non-refundable. Payment can be made using:

    • Credit Card

    • Debit Card

    • Net Banking

    • Demand Draft (if you choose to send documents by post)

  • Generate and Print Acknowledgement Slip: On successful payment, an acknowledgement slip with a 14-digit unique acknowledgement number will be generated. Save and print this acknowledgement slip.

  • Send Documents (for online applications):

    • Sign the printed acknowledgement slip.

    • Superscribe the envelope with "APPLICATION FOR TAN - Acknowledgement Number" (e.g., 'APPLICATION TAN - 88301020000244').

    • Mail the signed acknowledgement slip to the NSDL address mentioned on the website (usually to Protean eGov Technologies Limited, Pune). No other supporting documents (like identity or address proof) are generally required to be sent along with the acknowledgement for online applications. The details are validated against your PAN.

2. Offline Application Process:

  • Obtain Form 49B: Download Form 49B from the Income Tax Department website or the NSDL website, or obtain a physical copy from any TIN Facilitation Centre (TIN-FC).

  • Fill Form 49B: Fill out the form in duplicate, ensuring all details are accurate, legible, and in capital letters.

  • Submit Form: Submit the filled Form 49B along with the prescribed fee (cash, cheque, or demand draft) at any TIN Facilitation Centre.

  • Collect Acknowledgement: The TIN-FC will provide an acknowledgement slip upon submission.

 

After Application

  • Tracking Status: You can track the status of your TAN application online using the 14-digit acknowledgement number on the NSDL website.

  • TAN Allotment: Once your application is processed and approved, the Income Tax Department will allot a TAN, and the details will be sent to the address mentioned in your application. For online applications, you might also receive the TAN details via email.

  • TAN Registration on e-filing portal:

    • Once you receive your TAN, you need to register it on the Income Tax e-filing portal (incometax.gov.in) to perform TDS/TCS related activities like filing returns, viewing challan details, etc.

    • Process:

      1. Go to the e-filing portal and click "Register."

      2. Select "Others" as the category and then choose "Tax Deductor and Collector."

      3. Enter your TAN and click "Validate."

      4. Follow the steps to fill in basic details, contact information, and set a password.

      5. Verify using OTPs sent to your registered mobile and email.

      6. Approve the registration request (usually via a worklist item in your PAN login).

 

Documents Required

For applying for a new TAN (Form 49B), generally, no physical documents are required to be submitted for online applications, other than sending the signed acknowledgement slip to NSDL. The system primarily verifies details based on your PAN.

For offline applications, while the form itself doesn't explicitly ask for supporting documents like identity/address proof, it's prudent to carry them as a ready reference or if any clarification is sought by the TIN-FC.

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