Tax Deduction Account Number (TAN) Registration

In India, under the Central Government, the Income Tax Department issues a 10 digit Alphanumeric Number, Tax Deduction Account Number (TAN), to every person who has responsibility of TCS (Collecting Tax at Source) or TDS (Deducting Tax at Source). The number which is given is really unique and it is called TAN. As per Section 203A of the Income Tax Act, 1961, the TAN number shall have to be written on every TDS returns filed.

Tej and Associates offers Tax Deduction Account Number (TAN) along with other essential tax services like PAN, TDS, TRC, GST registrations, Shops Act, MSME registration, Profession Tax ,Employee Provident Fund .  Employee State Insurance, Non STPI and STPI, Import Export Code, and Trade Licence. 

ELIGIBILITY: 

Tax Deduction Account Number (TAN) Number can be issued to an individual, company, enterprise, or a firm and in case of company or organisation they will be treated as an individual.

STRUCTURE OF Tax Deduction Account Number (TAN):

The TAN, being a ten-digit alphanumeric number, has a unique structure. The identifier will find many details which are encoded by using the combination of letters and numbers. The structure of TAN is as follows:

Example: PDES 01011 

• The first three alphabets of TAN Number represent the jurisdiction code of the holder. 
• The fourth letter is the initial of the entity or individual applying for the TAN.
• The next five digits are numerical – The numerical in the middle are unique numbers generated by the system. 
• The last digit is a letter at the end – The last one letter is a unique letter generated by the system.

A TAN (Tax Deduction and Collection Account Number) is a ten-digit alphanumeric number issued by the Income Tax (IT) department to all persons responsible for collecting or deducting tax. Under Section 203A of the Income Tax Act, 1961, it is compulsory to quote Tax Deduction Account Number (TAN) on all TDS or TCS returns.

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Who Should Apply for TAN?

TAN should be obtained by every person responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS). It is mandatory to quote TAN in all TCS or TDS transactions, including any e-TCS/TDS return, TDS/TCS payment challan and TDS/TCS certificates.

Importance of TAN Number

Any person required to obtain a TAN will face difficulty filing tax returns when he/she does not apply for it. Failure to quote the TAN number in returns or documents will result in a penalty of Rs.10, 000. TAN should be quoted in the following documents:

• TCS or TDS statements/returns.
• Challans for TDS or TCS payments.
• Submission of TCS or TDS certificates.
• Collection or submission of a wide variety of IT-related forms.

Tax Deduction Account Number (TAN) Application Process

There are two modes for applying for a TAN:

Offline

The applicant should fill and submit Form 49B (Form of application for allotment of tax deduction and collection account number) to any TIN-Facilitation Center (TIN-FC) of Protean with the required fees for allotment of TAN. An applicant can also download the Tax Deduction Account Number (TAN) application from the NSDL website and submit the filled form along with the fees to the TIN-FC. In the case of an in-person TIN application, there is no need to furnish any supporting documents to the IT department.

Online

Applicants can apply online for TAN through the NSDL website. Applicants should read the instructions, fill the online form and submit it. After submission of the form online, they will receive the acknowledgement number. They must print the acknowledgement number and send it to the NSDL office at Pune. They can pay the required fees online or through a demand draft or cheque.

Once the IT department receives the TAN application, they will verify the details and issue the TAN of the applicants to NSDL. The NSDL will send the TAN details to the applicant’s address provided in Form 49B or send an email with the TAN details.

Tax Deduction Account Number (TAN) Application Fees

The processing fee for the TAN application is Rs.65 (including Goods and Service Tax)

TAN is a 10-digit alphanumeric code issued by the Income Tax Department and its primary purpose is related to the tax collected at source (TCS) and tax deducted at source (TDS).

It is compulsory for the deductors to provide TAN in the documents related to TCS or TDS. If you fail to mention TAN, there is a chance that the TDS payments and returns may be rejected by the banks. You may apply for TAN either online or offline via Form 49B.

Who needs to apply for a Tax Deduction Account Number (TAN) number?

All individuals or businesses that are required to collect or deduct tax at source on behalf of the Income Tax Department must apply for TAN.

Without a TAN, the returns will not be accepted by the TIN facilitation centres. Moreover, banks will not accept the challans for any TCS or TDS payments without the TAN.

The process to apply for Tax Deduction Account Number (TAN)

You may either apply online or visit the nearest TIN facilitation centre of the National Securities Depository Limited (NSDL). Here is the procedure to apply for a TAN online.

• Visit the TIN-NSDL  (www.tin-nsdl.com)
• Under the ‘Services’ tab, select ‘TAN’ and click the ‘Online’ option
• Opt for ‘New TAN’
• Choose from the list of ‘category of deductors’ and select the relevant option to be redirected to Form 49B
• Complete the form and click ‘Submit’
• After confirmation, the acknowledgment page is displayed with the following information.
• 14-digit acknowledgment number
• Applicant status and name
• Contact information
• Payment details
• Space for signature
• Take a printout and send it to the NSDL office in Pune