TAN (Tax Deduction and Collection Account Number) is necessary for the deduction and collection of taxes at the source, while PAN (Permanent Account Number) serves as a unique identifier for taxpayers.
TAN Registration Online
Tax Compliance
TAN Registration Online in India
Tax plays a crucial role in sustaining the economic framework of every country. To prevent tax evasion and ensure a steady flow of government revenue, certain payments are subject to Tax Deduction at Source (TDS) or Tax Collection at Source (TCS). To streamline this process, the Income Tax Department of India has made it mandatory for tax deductors and collectors to obtain a Tax Deduction and Collection Account Number (TAN).
TAN is a unique 10-digit alphanumeric code necessary for tracking and managing TDS and TCS transactions. Without a TAN, businesses and entities are prohibited from deducting or collecting taxes at the source, and non-compliance can result in penalties under the Income Tax Act of 1961. TAN registration is not just a legal requirement, but also vital for smooth tax compliance. The Income Tax Department issues the TAN, and a PAN card is required for applying for TAN in India. Corporate entities such as Private Limited Companies, OPCs, and LLPs must also provide a Certificate of Incorporation and, where applicable, a Partnership Deed to apply for TAN.
Tax Compliance Made Simple
What is TAN?
TAN (Tax Deduction and Collection Account Number) is a mandatory 10-digit alphanumeric number issued by the Income Tax Department of India to entities that deduct or collect tax at the source. It is needed for filing TDS/TCS returns, issuing TDS certificates, and making tax payments.
Key Features of TAN:
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Mandatory for TDS/TCS Deductors: Entities deducting or collecting tax must obtain a TAN.
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Issued by the Income Tax Department: TAN is allocated through NSDL (now Protean eGov Technologies Limited).
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Essential for Filing TDS/TCS Returns: Without TAN, TDS returns cannot be filed.
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Unique to Each Entity: Each business or entity can have only one TAN per location.
Who Needs to Apply for TAN?
Why is TAN Registration Important?
TAN registration is important for individuals, including employers, employees and government bodies for the following reasons:
Legal Requirement
Under Section 203A of the Income Tax Act, 1961, obtaining a TAN is compulsory for entities responsible for tax deduction or collection at the source.
Avoid Penalties
Not obtaining a TAN or using an incorrect TAN can lead to a penalty of ₹10,000 under Section 272BB of the Income Tax Act, 1961.
Filing TDS/TCS Returns
TAN is required for filing quarterly TDS/TCS returns, remitting deducted tax, and issuing TDS certificates like Form 16 and Form 16A.
Smooth Process of Financial Transactions
Banks, financial institutions, and government agencies must have a valid TAN for transactions involving TDS.
Mandatory for Business Operations
Employers who deduct tax on salaries or companies making such payments are required to have a TAN for proper compliance and record-keeping.
Tax Deduction Tracking
The Income Tax Department uses TAN to track compliance with tax laws and ensure timely and accurate tax collection.
TAN Registration Documents
Documents Required for TAN Registration
TAN registration does not require a specific set of documents, but the following details must be provided:
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Name and Address of the applicant
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Type of Entity, such as Company, Firm, Individual, etc.
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PAN Card Details of the applicant
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Contact Information, including Email ID and Mobile Number
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Authorized Signatory Details (for businesses)
These details are essential for processing the registration and ensuring proper tax compliance. The application can be submitted online through the official portal for quick and easy processing.
TAN Registration Process
TAN Registration Process in India
The TAN registration process in India is straightforward and can be completed online. Applicants need to provide essential details like PAN, entity type, and contact information to obtain a unique TAN for tax-related transactions.
Online Procedure
To register for TAN, visit the NSDL portal and fill out Form 49B with required details like entity type, PAN, and business information. Pay the application fee of ₹77 through various payment methods. After submission, an Acknowledgement Number will be generated, and the signed acknowledgment should be sent to the NSDL office for processing.
Offline Procedure
Obtain Form 49B from TIN Facilitation Centers (TIN-FCs).
Fill in the required details, including PAN and business information.
Submit the completed form along with the application fee at the nearest TIN-FC.
Upon verification, TAN will be allotted and sent via mail.
Penalty for Not Having a TAN
Failure to obtain TAN results in a penalty of ₹10,000 under Section 272BB of the Income Tax Act. Additionally:
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TDS returns cannot be filed without a valid TAN.
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Payments may be disallowed in tax calculations.
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Late filing or incorrect TAN usage can lead to fines.
Checking the Progress of Your TAN Application
Applicants can track the status of their TAN application on the NSDL website by entering the 14-digit acknowledgment number. The status updates include:
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Application Received
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Processing in Progress
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TAN Number Allotted
Mistakes to Avoid When Applying for TAN
Common mistakes include:
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Incorrect Entity Type Selection: Ensure the correct entity type is selected.
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Mismatch in PAN and Business Details: Double-check all information before submission.
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Failure to Submit Acknowledgment: The signed acknowledgment must be sent to NSDL for processing.
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Multiple TAN Applications: Only one TAN is permitted per entity.
How to Reactivate a Cancelled TAN?
If a TAN is canceled due to non-use or errors, it can be reactivated by:
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Submitting a written request to the Income Tax Department.
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Providing supporting documents, including PAN and business details.
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Updating KYC details if required.
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Awaiting approval from tax authorities for reactivation.
Simplified & Reliable
Why Choose Rule Infinity for TAN Registration?
Rule Infinity is your trusted partner for seamless TAN registration in India, offering expert support to ensure a smooth, accurate, and legally compliant process. We provide a personalized approach, tailoring solutions to meet the unique needs of each individual, entity, or business. With years of experience in tax-related services, our team ensures accurate and efficient processing of your TAN application. We prioritize timely registration to avoid penalties and legal issues, handling all paperwork and documentation to keep you compliant with tax regulations. Our hassle-free process simplifies the entire registration journey, so you can relax while we manage the details. Additionally, we offer transparent and cost-effective pricing with no hidden fees, ensuring complete clarity from the start.
Income from Salary & Pension
Income Tax Filing is mandatory if Tax payers have only salary or pension Income that is More than the Basic exemption Limit specified Under section 139 of the Income tax Law.
Salary Income
649
Return*
Resident earning Salary Income from one company in India during the PY
- Consultation
- Income tax return filing
- 1 company form 16
- Follow up
Salary Income
849
Return*
Resident earning Salary Income from more than 1 company in India during the PY
- Consultation
- Income tax return filing
- More than 1 company form 16
- Follow up
Pension Income
599
Return*
Resident earning Income from Pension in India during the PY
- Consultation
- Income tax return filing
- 1 company form 16
- Follow up
Frequently Asked Questions
What is the difference between TAN and PAN?
How long does it take to receive a TAN?
TAN is typically issued within 7 to 10 working days following the completion of the application process.
Is TAN required for individuals not deducting TDS?
Only individuals or entities responsible for deducting TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) are required to apply for TAN.
How can I retrieve a lost TAN?
A duplicate TAN can be obtained via the NSDL website by providing the PAN details.
Can I surrender my TAN?
TAN can be surrendered by submitting a TAN Surrender Request Form to the Income Tax Department.
What happens if TDS is deducted without a TAN?
TDS deductions made without a TAN can result in non-compliance and may attract penalties.
Is TAN mandatory for freelancers?
Freelancers are only required to deduct TDS if they are making payments to employees or contractors.
Do NGOs require TAN?
Yes, an NGO is required to deduct TDS on payments made to employees, vendors, or contractors.
Can I use one TAN for multiple branches of my business?
Each branch or division must obtain a separate TAN if they operate in different jurisdictions.
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