TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government's collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government - quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax.
To obtain TAN, application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN will be allotted to the entity and the entity must quote the TAN in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates.
STEP - 1
My Auditor Tax Expert will prepare your TAN Application and obtain your signature in the format along with the necessary supporting documents.
STEP - 2
Once the application is prepared, My Auditor will submit the TAN Application to the Tax Department. My Auditor is a TAN Facilitation Center.
STEP - 3
Once the application and the attached supporting documents are verified, the Tax Department will allot a TAN Number for your business.
Certificate of Company Registration
Company PAN Card
PAN Card and Aadhar Card of authorized person
Partnership Deed (if required)
TAN is issued with life time validity
Since TAN is mandatory for deducting tax at source (with some exceptions), it helps an entity to fulfill the statutory requirement of deducting and depositing tax at source
TAN or 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 or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.
A Deductor is a specified person who is eligible to deduct tax on particular types of payments being made by them as per the provisions of the Income Tax Act, 1961.
TAN Registration Number is provided by TIN when TAN is registered on TIN.
There are two types of TAN Applications:
Application for issuance of new TAN (Form 49B)
Form for change or correction in TAN data for allotted TAN
Applicants may track their TAN application status using 14-digit unique acknowledgment number after three days of application using the status track facility on TIN.
Applications for Form 49B received by NSDL are digitized and forwarded to ITD. ITD will issue the TAN which will be intimated to NSDL online and NSDL will then issue TAN letter to applicant.
The provisions of Section 203A of the Income Tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS / TCS / Annual Information Returns, payment challans and certificates to be issued. Deductor cannot file TDS / TCS statements and deposit challans for TDS / TCS payments in banks without TAN. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of 10,000/-.