TAN Registration

TAN Registration:

Tax Deduction and Collection Account Number better known as TAN is a 10-digit alphanumeric number. The number is required to be obtained by all persons who are responsible for deducting or collecting the tax.

The alphanumeric number is allotted by the Income Tax (IT) Department under Section 203A of the Income Tax Act, 1961. It is required to be mandatorily quoted on all TDS returns.

Who Needs to Apply for TAN?

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.

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TAN Registration Made Simple & Easy

What is TAN?

TAN stands for Tax Deduction and Collection Account Number. TAN is a 10-digit alphanumeric number provided by the Income Tax Department to individuals who execute Tax Deduction at Source (TDS) and Tax Collection and Source (TCS). Section 203A of the Income Tax Act, 1961, mandates that whosoever deducts tax at the source holds a TAN number to carry out the tax deduction process. TAN is usually mentioned in every TDS/TCS return, TDS/TCS certificate, and TDS/TCS challan. TAN is mandatory in certai cases, if not the returns filed won’t be accepted and banks do not accept the challans for TDS/TCS payments.

Note: A penalty of Rs.10,000 will be imposed on those who fail to apply for TAN or do not have a TAN number in the specified documents.

Table of Contents

• What is TAN?
• Who are eligible to apply for TAN?
• What is the Structure of TAN?
• Why is TAN necessary?
• What documents are required for TAN registration?
• How to apply/register for TAN?
• How to check the status of TAN Registration?
• Correction of TAN
• TAN - Key Highlights

Who are eligible to apply for TAN?

All those who pay a salary or a commission to other individuals need to have a TAN. It also includes central, state, or local authorities. It could be an autonomous body, a company, a statutory, Hindu Undivided Family (HUF), sole proprietor, the association of persons, or trusts. As mentioned above, all those who deduct or collect tax at source on the behalf of the Income Tax Department need to apply and obtain a TAN..

What is the Structure of TAN?

The first four characters are letters, the next five characters are numbers and the last character in the TAN number is again a letter. The structure of the TAN number has been updated in the last few years. The first three characters of the 10-digit alphanumeric number indicate the jurisdiction code while the next character highlights the deductee’s name. The next five characters are represented by a five-digit number and the last character is an English alphabet.

For example, if a TAN is allotted to a person named Vikram from Chennai, the TAN appears as follows CHE V 3678 N. Here, V indicates the name Vikram followed by five digits ending with an alphabet.

Why is TAN required?

• TAN is used for deductions such as salary, dividends, and interest. While paying taxes, challan type 281 must be used. The TAN number should be mentioned correctly along with the deductor’s name and address.
• TAN is a unique 10-digit number with lifetime validity.
• TDS certificates are issued by those who hold a TAN number. So, the taxpayer gets to know how much tax has been deducted.
• Also, taxpayers can use this TDS certificate as proof of taxes paid in any grievances.
• It is mandatory to quote TAN in all tax-related documents.
• It automatically captures the Postal Index Number and the address of the person who deducts TDS on behalf of the IT department.

Note: It is illegal for a person to have more than one TAN. But, you can apply for separate TAN for each branch and division.

What documents are required for TAN registration?

There are no specific documents required for TAN registration but certain important details need to be furnished during the process.

• Applicant’s information - Name, address, contact, signature, etc.
• Address proof - Aadhar card
• Certification of incorporation for a company, LLP, etc.
• Agreement made for a partnership firm.

On furnishing the above details, an acknowledgment slip will be generated. Save and print the acknowledgment slip for future reference. Credit card/debit card/net banking mode can be availed if the payment is done online. If the mode of payment is offline, then a DD (Demand Draft) or challan in the name of NSDL-TIN should be sent to the NSDL office.

How to apply/register for TAN?

Get legal assistance from our experts at Free Tax Filer to register for TAN. The TAN registration process is simple and can be done either offline or online.

1. Offline Mode

If the applicant wishes to apply for TAN via offline mode, then he/she has to fill up Form 49B in duplicate and submit it to any TIN (Tax Information Network) Facilitation center.

In case the applicant is a company that is not registered under the Companies Act, 2003, then the application should be made via Form No INC-7. The allocation for the Tax Deduction Account Number can be made via Form No INC -32 (SPICe).

The TIN-FC addresses is available on the official NSDL-TIN website. On applying, a processing fee must be paid by cash, DD, or cheque at the TIN-FC counter.

2. Online Mode

• A TAN number can be obtained by logging on to the   NSDL-TIN   website.
• Choose  TAN   under the   Services   drop-down menu.
• Click on   New TAN.
• Now, a page will be generated called  Form 49B.
• Enter all the mandatory details required. For example, Name of the company/indivdual/ contact number, etc.
• On filling in all the necessary details, click   Submit  button and you will be directed to the payments page.
• After confirmation, an acknowledgement screen is displayed which has
• A 14-digit acknowledgemet number
• Name of thee applicant
• Status of the application
• Contact information
• Payment details
• Space for signature

The applicant must save the acknowledgement slip and take a printout of it for further reference.

The processing fee for issuance of a new TAN or correction of an old TAN data is Rs.65 (Rs.55 is the application charge + 18% GST). The payment can be done either online or offline. If the payment is done online the application will be submitted instantly.

The required documents along with the printout of the acknowledgement should be sent to Protean eGov Technologies Limited at

NSDL - e-governance Infrastructure Limited,
5th floor, Mantri Sterling
Plot No. 341, Survey No. 997/8,
Model colony,
Near Deep bungalow Chowk,
Pune - 411016.

Important:

1. Do not forget to mention “Application for TAN “ and the acknowledgement number at the top of the envelope. The application will reach the destination in 15 days and shall be processed only if it has a properly signed acknowledgement and realization of payment.

2. TAN application can be done on Form 49B only. Application requests typess out on a piece of paper is not valid. All the details must be entered in capital letters only.

How to check the status of TAN Registration?

• Applicants can check their status of TAN application using TRACK STATUS facility by entering a 14-digit acknowledgement number.

• Visit the official Tax Information Network (TIN) website of the Income Tax Department.
• Choose the application type, i.e, TAN
• Enter a 14-digit acknowledgement number.
• Enter the applicant’s name as mentioned in the application
• Enter the Date of Birth
• After this, the status of the TAN application can be viewed.
• The status of the TAN application can also be tracked by sending an SMS - NSDLTAN to 57575.

Correction of TAN

If you would like to make any corrections or changes in the details mentioned in your TAN, you must fill up a change request form via the NSDL website. The following documents need to be submitted along with the chage request application.

1. Proof of TAN (current)
2. Proof of TAN that is to be cancelled
3. A relevant documented proof to support the request to change or correct certain details in your TAN.
4. Printout of TAN details or TAN allotment letter

TAN - Key Highlights

• An individual required to deduct tax under Section 194-IA can use PAN instead of TAN.
• Tax Deduction Account Number (TAN) is not required to deduct tax under Section 194 M or 194-IB.
• Quoting a false TAN may lead to a penalty of Rs.10,000 under Section 272BB(1) of the Income Tax Act.
• Section 194 M offers tax deductions at the rate of 5% fro the amount charged or credited to a resident in a year for contract work.

Frequently Asked Questions (FAQs)

1. How long does it take to receive a TAN?

It usually takes around 7-10 days for the TAN application to get processed. The processing time will be more for physical TAN applications.

2. How will I receive my TAN?

The NSDL will send the TAN allotment letter to the address mentioned on Form 49B.

3. Under what conditions can the TAN application get rejected?

The TAN application may get rejected if

a. The applicant has not filled Form 49B correctly, or the form is incomplete.

b. The applicant has already got a TAN in his/ his company’s name.

c. The payment was not processed properly.

4. What should I do if my TAN application is rejected?

In case your TAN application get rejected, fill in the Form 49B correctly before submitting it.

If you are still unsure, visit thee nearest TIN facilitation centre and take the help of the officials.

Also, check if the payment is done properly. If you paying via cheque, ensure that your account has sufficient amount of money.

5. Do I have to pay a fee to download Form 49B?

No, Form 49B can be downloaded free of cost.

6. Is it possible to check the status of the TAN application online?

Yes, you can check the status of your TAN application by visiting the official NSDL-TIN website.