How To Apply your TAN Registration With Taxgoal

With Taxgoal You can Apply your Online TAN Registration in simple steps.

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Introduction


A Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric identifier issued by the Income Tax Department of India. It is mandatory for all individuals and entities responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961. TAN ensures proper tracking of TDS/TCS payments and filings.

Who Needs a TAN?


TAN registration is required for:

  • Companies (public or private)
  • Proprietorships and partnerships
  • Government agencies
  • Trusts and societies
  • Individuals deducting TDS for rent, contractor payments, professional fees, etc.
  • Any entity required to collect TCS

Even small businesses or individuals, if they deduct TDS, must obtain a TAN.

Structure of TAN


A TAN is a 10-character alphanumeric code:

  • First four letters: Represent the state and deductor type
  • Next five digits: System-generated numeric code
  • Last letter: Check digit

Example: DELM12345Q

Why TAN is Important


✔ Mandatory for TDS/TCS compliance

Without TAN, TDS/TCS cannot be deposited.

✔ Required for filing TDS/TCS returns

All quarterly statements must mention the TAN of the deductor.

✔ Needed for issuing TDS certificates

Form 16, 16A, and 27D require TAN.

✔ Avoids penalties

Failure to apply for TAN or quoting an incorrect TAN attracts a penalty of ₹10,000 under Section 272BB.

How to Apply for TAN (Online Process)


Step 1: Visit the NSDL/Protean portal

Navigate to the TAN application section.

Step 2: Select Application Form 49B

Choose the appropriate category (company, firm, individual, etc.)

Step 3: Fill in Required Details

You will need:

  • Name and address of the deductor
  • PAN of the responsible person
  • Contact details

Step 4: Submit the Form

Review and submit the application online.

Step 5: Pay the Application Fee

A nominal fee (usually around ₹65–75) may be charged.

Step 6: Print and Sign the Acknowledgment

The acknowledgment form must be signed and either:

  • Sent to the designated NSDL office, or
  • Submitted via Aadhaar-based e-signature (if available)

Step 7: Receive TAN

Once processed, TAN is allotted and sent by email and physical mail.

  1. Offline Application Process

Applicants can also submit Form 49B physically at a TIN-Facilitation Centre. The centre will forward the form for processing.

  1. Documents Required

Usually, no documents are required for TAN registration unless there is a discrepancy. Basic details of the deductor are sufficient.

  1. Quoting TAN: When and Where

TAN must be quoted in:

  • TDS return forms (24Q, 26Q, 27Q, etc.)
  • TCS return forms (27EQ)
  • TDS/TCS certificates
  • Challans for TDS/TCS deposit
  • All correspondence with the Income Tax Department
  1. Correcting or Changing TAN Details

If the deductor needs to modify details like address, contact number, or name, they can file a TAN Correction/Change Request Form online or offline.

  1. Consequences of Non-Compliance
  • Penalty of ₹10,000 for failure to apply for TAN
  • Rejection of TDS payment
  • Delay in processing TDS returns
  • Difficulties in tax credit for deductees
  1. Conclusion

TAN registration is a crucial compliance requirement for anyone responsible for deducting or collecting tax in India. The process is simple, affordable, and mostly online. Obtaining and properly quoting TAN ensures smooth TDS/TCS operations, accurate tax credit allocation, and avoids penalties.

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