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TAN

Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued by Income tax department of India, to persons who are required to deduct or collect tax on specified payments made to any person in or outside India. TAN is the unique identification number of the tax deductors, who are authorized to deduct TDS or TCS and enable the assessees who have received the payments to claim the tax deducted in their income tax return. TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued.

Features

  • TAN –Tax Deduction or Collection Account Number

    TAN is a 10 digit alphanumeric number, issued by Income Tax Department of India to the persons responsible for deducting or collecting tax at source.

  • Person need to apply TAN

    All those persons who are required to deduct/collect tax at source are required to apply for and obtain TAN.

  • Use of TAN

    It is compulsory to quote TAN in TDS returns, TCS return, annual information return, Challans for payment of TDS/TCS, TDS /TCS certificates and other documents as may be prescribed.

  • Time to obtain TAN

    Generally TAN may be obtained in 5-10 working days from the time of submission of application with the required documents.

  • Validity

    Once a TAN is issued, it is valid for lifetime. However, any change in the TAN database (i.e. details provided at the time of obtaining TAN) should be intimated to the Income Tax Department.

  • Authority empowered to allot TAN

    TAN is allotted by the Income-tax Department on the basis of the application submitted online at NSDL-TIN website or offline to TIN-FC managed by NSDL.

Procedure

How long Does It Take?

Preparation of TAN Application

0-1 working day

Application for TAN is prepared either in physical or online mode in prescribed Form 49B based on the information and documents of the applicant.

Submission of TAN Application

0-1 working day

TAN application is submitted at the TAN facilitation center of NSDL along with requisite supporting documents and prescribed fee. An online application can also be made from the website of NSDL-TIN.

Obtaining TAN Number

5-10 working days

After due scrutiny and processing, the department dispatch the TAN card directly to registered address of the applicant. The time period in receiving the TAN card may vary depending on the location and other factors.

FAQ

  • What is relevance of TAN?

    As per section 203A of the Income-tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN. Section 203A also makes it mandatory to quote TAN in following documents: (a) TDS statements i.e. return (b) TCS statements i.e. return (c) Annual Information Return (d) Challans for payment of TDS/TCS (e) TDS/TCS certificates (f) Other documents as may be prescribed

  • After application of Tan Number how to confirm status of application?

    Applicant can inquire the status of your application by accessing NSDL-TIN or TIN-FC website at the \"Status track\" option and quoting unique 14-digit acknowledgement number after three days of application. This facility can be accessed from the website of Income-tax Department too (www.incometaxindia.gov.in).

  • Government deductors are also liable to obtain TAN?

    Yes, like Non-Government deductors, the Government deductors are also required to apply for the allotment of TAN.

  • Is there any penalty for not complying with provisions relating to TAN?

    Both for failure to obtain TAN or not quoting the same to the specified documents attracts a penalty for Rs. 10,000. Banks will also not accept TDS/TCS Return and payments of challans for TDS/TCS if the TAN is not quoted on the same.

  • Who all need to apply for TAN?

    Every person responsible for deducting or collecting tax at source has to apply for and obtain TAN except a person deducting tax under section 194-IA.

  • Is there any need of hiring consultant for applying TAN?

    No, it’s not mandatory to hire consultant for obtaining TAN. The assessee may directly apply through offline or online mode in prescribed form 49B.

  • Whether any separate TAN is required to obtain for the purpose of TCS?

    No, there is no need to obtain separate TAN for the purpose of TCS, if the person already holds TAN for the purpose of TDS. In other words, TAN allotted for TDS can be used for TCS purpose also.

  • Can a person hold more than One TAN?

    No. It is illegal to possess or use more than one TAN. Different branches/ divisions of an entity may have separate TAN. In case more than one TAN have been allotted, then the TAN which is being used regularly should be continued and the other TAN(s) should immediately be surrendered.

Documents Required

DOCUMENTS REQUIRED FOR THE PROCESS

    Physical Application:

  • An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN-FC. No documents are required to be submitted along with physical application for allotment of TAN.

    Online Application:

  • Online application for TAN can be made from the website of NSDL-TIN website. The signed acknowledgment which is generated after filling up the form is to be forwarded to NSDL.