Tan Requirement

TAN is required by all persons who are responsible for Deducting Tax because without it Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centers. Banks to do not accept the challans for TDS/TCS payments if TAN is not quoted.

It needs to be mentioned that failing to apply for TAN or not quoting the 10-digit alphanumeric number in specified documents like TDS/TCS returns, E-TDS/E-TCS returns, TDS/TCS certificates, and TDS/TCS payment challans can attract a penalty of Rs.10,000.

Who can Apply for TAN?

If one is paying salary or a commission to another, the entity must have a TAN, This can include

Individuals

Hindu Undivided Family

Company

Central or state government or a local authority

Sole proprietor

Firms

Associations of persons

Trusts

Types of TAN Application

TAN applications are of two types – application for allotment and application for change or correction.

Application for allotment of new TAN
The application can be made online on the NSDL-TIN website or downloaded to submit it offline. It asks for details like name, address, contact number, nationality, PAN, existing TAN etc. Applicants need to pay a TAN application processing fee as applicable.

Application for change or correction in TAN data for allotted TAN
The change or correction form requires details like the 10-digit TAN, category of the deductor, name, address, nationality, PAN, and TAN(s), if allotted. It also has rows to mention the changes/correction required. Applicants need to prove allotment of TAN by submitting TAN allotment letter issued by Income Tax Department or a print out of the TAN details.

How to Apply For TAN?

An application for allotment of TAN may either be made online or offline. A clearly written set of guidelines are available to make this process easier for the applicants.

  • Online Application
    • TAN application may conveniently be made online by visiting the NSDL-TIN website (www.tin-nsdl.com). An acknowledgement will appear on screen on confirmation of correct uploading of the TAN allotment application.
  • Offline application
    • If an applicant chooses the offline mode, they should visit the nearest TIN Facilitation Centre (TIN-FC) and submit the application in Form 49B in duplicate. The addresses of TIN-FC are given on the NSDL-TIN website.

Documents To be Submitted Along With TAN Application

While applying for a new TAN, applicants are not required to submit any documents. They only things they need to submit is the signed acknowledgement slip if they apply for a new TAN through online mode.

How To Know TAN Details Using Applicant’s Name

An applicant can know the TAN details by using the name of the applicant as well. This can be done by following the steps mentioned below

Step 1.

Visit www.incometaxindia
efiling.gov.in

Step 2.

Click on ‘Know Your TAN’

Step 3.

Select ‘Name’ under the ‘TAN Search’ option

Step 4.

Select ‘Category of Deductor’

Step 5.

Select ‘State’

Step 6.

Provide ‘Name’ and ‘Mobile Number’

Step 7.

Press on ‘Continue’

Step 8.

Provide the One Time Password (OTP) sent on the registered mobile number in the corresponding screen

Step 9.

Next, click ‘Validate’

Step 10.

The details are displayed on the corresponding screen.

Consequences Of Not Quoting TAN

If the 10-digit alphanumeric TAN number is not quoted by eligible persons at requisite places. They can face the prospect of paying a penalty of Rs. 10,000 under Section 272BB(1). If a wrong TAN is provided, the same penalty is imposed on the applicant under Section 272BB.

Apart from the above-mentioned points, if a TAN is not quoted in places where it is required, the following may also occur :

TDS or TCS Return are not accepted by TIN facilitation centers

Banks to do not accepts the challans for TDS/TCS payments.

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Frequently Asked Questions

What is TAN?

TAN i.e. Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed.

Why is it necessary to have 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 TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates and other documents as may be prescribed. As per section 272BB, failure to apply for TAN or not quoting the TAN in the specified documents attracts a penalty of Rs. 10,000/-.

Who will allot TAN?

TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centers (TIN-FC) managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.

What is duplicate TAN?

Duplicate TAN is a TAN which has been inadvertently obtained by a same person who is responsible for deducting/collecting tax and who already has a TAN allotted to him earlier. In other words, more than one TAN issued to a person is called duplicate TAN. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.

In case duplicate TAN has been allotted, which TAN should be used?

In case duplicate TAN(s) have been allotted to a person, then the TAN which has been used regularly should be used. The other TAN(s) should be surrendered for cancellation by using "Form for Changes or Correction in TAN" which can be downloaded from the website of NSDL.