Tax Deduction and Collection Account Number (TAN)

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What Is TAN?

Under Section 203A of the Income Tax Act of 1961, all organisations must include the TAN in all correspondence involving TDS. The Income-tax Department must provide a Tax Deduction and Collection Account Number (TAN). It is a ten-digit alphanumeric number, provided to anyone who has enrolled in Tax Deduction at Source (TDS) and Tax Collection at Source (TCS). The TAN number must be mentioned in all TDS/TCS returns, certificates, and payment challans. To carry out the deduction procedure on behalf of the government and make deposits to the same, all entities that deduct tax at source must possess a TAN number.

TAN structure:

  • The first four TAN digits are alphabets, the next five are binary, and the final digit is an alphabet
  • The first three alphabets stand for the authority codes
  • The initial alphabet represents the TAN holder's name, which can be that of a person, business, or other entity, and is represented by the fourth alphabet of the TAN.

Benefits of TAN

  • It is a lifetime-valid unique number
  • In the end, deductions including wages, interest, and dividends are made using TAN
  • When submitting taxes, the challan type 281 should be used, and the deductor's name and address should be appropriately typed together with the 10 digit TAN number
  • Because TDS return certificates are given by a person or business that holds TAN, the taxpayer has the chance to find out how much tax they have paid
  • The taxpayer can also use this TDS certificate as evidence of tax payment in any type of complaint
  • All tax documents must contain TAN information.

Checklist for Securing a TAN

  • All bank transactions regarding TDS should contain a TAN number
  • All TDS/TCS-related forms should appropriately quote TAN numbers
  • HUFs and people who are paid a salary are exempt from the requirement to obtain TAN
  • Section 272BB(1) of the Income Tax return imposes a ₹10,000 fine for quoting a fraudulent TAN
  • Everyone who has obtained a TAN has the ability to modify or correct the TAN data by going to the NSDL official website.

The TAN Registration Process

You can complete TAN registration through both online and offline processes that are explained below.

Offline Mode:

  • A Form 49B (duplicate) application for TAN funding must be proposed to any Tax Information Network Facilitation Center (TIN-FC). On the NSDL-TIN website, you may find the TIN-FC addresses
  • If the applicant is a corporation that hasn't been incorporated under the Companies Act of 2013, they can submit Form No. INC-32 to request the allocation of a Tax Deduction Account Number.

Online Mode:

  • The National Securities Depository Limited (NSDL) department's Tax Information Network (TIN) website can be accessed to receive TAN
  • Select Service > Drop-down Menu > TAN > Apply online > New TAN from the drop-down menu on the website
  • After selecting New TAN, complete all the necessary fields and then submit
  • You will see an acknowledgment screen with the details of payment after choosing the payment method enter the required information
  • The candidate must cover the TAN registration costs
  • On the other hand, if payment is made offline, the duly signed acceptance receipt and a demand draft (DD) or challan made out to NSDL-TIN should be delivered to NSDL's office address
  • Download the Form 49B from the NSDL website, fill it out with the necessary information, and attach a DD or challan with the NSDL-TIN before mailing it to the NSDL office.
  • On the back of the DD/Cheque, the applicant's name and acknowledgment number should be written
  • Upon successful e-payment, an acknowledgment will be shown
  • The acknowledgement must be saved, printed, and submitted to NSDL as instructed under 'document submission' by the applicant.

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Document Submission

  • The signed acknowledgment and any necessary DD should be sent to the NSDL address
  • Write ‘Application for TAN’ and the acknowledgment number at the top of the envelope
  • Within 15 days of the date of the online application, it must reach the NSDL
  • Only after receiving a fully signed acknowledgment and payment will the application be processed.

Steps to Track TAN Registration Status

Every applicant can check the status of their TAN application using the ‘track status’ feature, which uses a fourteen-digit acknowledgment number. One can check the status of their TAN by following the guidelines below:

  • Visit the Income-tax department's official Tax Information Network (TIN) website
  • Choose the type of application. i.e TAN
  • Name > Date of Birth > Acknowledgement Number
  • Then one can find out the TAN application's status
  • If the applicant prefers, they can phone the TIN Call Center at 020 - 2721 8080 to find out the status of their application. Sending an SMS with the keyword NSDLTAN to the number 57575 will also allow you to track the status of the TAN application.

Know Your TAN:

Apart from that, get assistance from an expert for a hassle-free registration.

  • Visit the IT department's official e-filing webpage
  • Choose the 'Know Your TAN' option
  • Choose 'Name' or 'TAN' from the 'TAN Search' menu
  • Next, Choose the 'Category of Deductor' option
  • Name, state, and registered cellphone number should be entered
  • Then press 'Continue'
  • In the corresponding screen, fill the OTP that was transmitted to the registered mobile number
  • Next, select 'Validate'
  • The screen will show all of the TAN information
  • Print it out after you download it, then use it as your TAN certificate.

Documents Required for TAN Registration

  • Aadhaar cards or another form of address verification are acceptable
  • Name, address, contact information, the signature of the applicant
  • LLP or firm incorporation certificate
  • The acknowledgment slip is generated after the aforementioned information has been added
  • The acknowledgment receipt should be saved and printed for future use
  • A credit card, debit card, or net banking option can be used if the payment is to be made online
  • If the payment method is offline, a Demand Draft (DD) or challan with the reference number NSDL-TIN must be provided to the NSDL office.

Why Vakilsearch

Please be aware that the current procedure for requesting and acquiring a TAN number is being changed by the Indian government. The Ministry of Corporate Affairs (MCA) and the CBDT has already issued directives that eliminate the need for organisations to file both TAN and PAN card. Also filing wrong information on the official website may result in complicating the process. It is highly recommended to get in touch with our legal experts for procuring a TAN. The team will provide complete support and complete the whole process without much delay.