Anyone deducting tax on behalf of the Income-Tax Department in India must have a TAN that they need to quote, at the time of submitting this tax. This guide will explain everything a taxpayer needs to know about TAN.
What is TAN?
TAN is the short form used for the Tax Deduction & Collection Account Number. A 10-digit alpha-numeric identification number, TAN is required each time a collector of income taxes deposits the tax amount with the authorities.
TAN sample
A TAN has four alphabets, followed by five numbers and ends with one alphabet. A TAN number would look like MKNL56873G.
See also: A quick guide on e PAN download process
Why is TAN needed?
TAN is mandatory in case of TDS/TCS return (including any e-TDS/TCS return), TDS/TCS payment challan and TDS/TCS certificates. In case you fail to quote your TAN, a penalty of Rs 10,000, under Section 203A, can be levied on you apart from the fact that the Income-Tax Department would not accept your TDS payments.
It is important to remember that your PAN cannot act as an alternative for your TAN. Both PAN and TAN are issued for different purposes and cannot be used as alternatives for each other, unless allowed by the I-T Department for some reasons.
Who has to apply for a TAN?
Anyone required to deduct tax at source (TDS) on behalf of the Income-Tax Department has to apply for a TAN. This is a legal necessity since Section 203A of the income tax law makes it mandatory for people who deduct tax at source, to apply for a TAN.
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Who can apply for a TAN?
- Central/state government/local authority
- Statuary/autonomous body
- Company
- Branch/division of a company
- Individual/Karta of a Hindu Undivided Family
- Branch of individual business (sole proprietor)/Hindu Undivided Family Karta
- Firm/association of persons/association of persons (trusts)/body of individuals/artificial juridical person
- Branch of firm/association or persons/association of persons (trusts)/body of individuals/artificial juridical person
Documents needed to apply for TAN
No documents are required to apply for a TAN.
Which form to fill out to apply for TAN?
First-time applicants need to fill out Form 49B. Those seeking any change or correction in their existing TAN will have to fill out a different form.
Click here to download the TAN change application form.
How to apply for a TAN?
You can apply for a TAN online as well as offline.
How to apply for a TAN offline?
You can download, fill and submit your TAN application to any TIN-Facilitation Centre (TIN-FC) of the NSDL. Apart from vendors, these centres will also provide you with the TAN application form. You can also download the TAN application form from the official NSDL portal.
How to apply for TAN online?
Step 1: Go to the official NSDL-TIN website. Under the ‘Services’ tab, click on ‘TAN’.
Step 2: On the next page, click on the ‘Apply Online’ option under ‘TAN’.
Step 3: Now you can apply for a new TAN. Those looking to rectify errors in their existing TAN can use the ‘Change/Correction’ option. In our example, we will look at the new TAN application.
Step 4: The next page will provide detailed instructions (which you can read in Hindi or English) and the option to apply for a new TAN.
Step 5: Select the ‘Category of Deductors’ to open Form 49B. Fill out the form carefully, pay the required fee and click ‘Submit’.
Step 6: An acknowledgement number, containing 14 digits, will be displayed on the screen. You can track the status of your TAN using this number.
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How to track the status of your TAN application?
After you apply for your TAN, a 14-digit unique acknowledgement number is issued. You can use this number after three working days to track the status of your TAN. You can also call the TIN call centre on 020 – 2721 8080 to inquire about the status of your TAN application or send an SMS to 57575 with the text NSDLTAN.
TAN application fee
The processing fee for a new TAN, as well as change requests in TAN is Rs 65 (including GST).
TAN: Modes of payment of application fee
You can pay the TAN application fee using your debit card, credit card, net banking, demand draft or cheque.
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TAN FAQs
What is the full form of TAN?
Tax Deduction & Collection Account Number is the full form of TAN.
What are TAN and PAN?
While TAN is the short form for Tax Deduction & Collection Account Number, PAN stands for Permanent Account Number. While TAN is a number issued to collectors of tax deducted at source, PAN is issued to taxpayers.
How can I know my TAN number?
In case you have forgotten your TAN, you can know it online on the Income-Tax Department website, www.incometaxindiaefiling.gov.in. Click on the ‘Know Your TAN' tab on the portal, provide the required details and find out your TAN.
What is the use of TAN?
TAN has to be quoted at the time of submission of taxes deducted and collected on behalf of the Income Tax Department in India. Without the TAN, this will not be possible.
Who issues the TAN?
While the NSDL receives your application for TAN and eventually issues you the number, it does so at the directives of the Income-Tax Department.
What happens if I deduct TDS without a TAN?
The Income-Tax Department will not accept any TDS returns and payments till the TAN number is quoted. Those responsible to apply for TAN may also be subjected to a fine of Rs 10,000 in case they fail to do so.
Can I quote PAN in place of TAN?
You cannot quote PAN in place of TAN. Similarly, you cannot quote TAN in place of PAN.
Can an application for TAN be made on plain paper?
No, the application for a new TAN has to be made using Form 49B. This form can be downloaded from the Income Tax Department website or the NSDL website. You can also get the form at TIN facilitation centres.
