WHAT IS TAN REGISTRATION


 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.

PROCEDURE FOR TAN REGISTRATION


STEP - 1Untitled

Application Preparation

My Auditor Tax Expert will prepare your TAN Application and obtain your signature in the format along with the necessary supporting documents.

 

STEP - 2Untitled

Application Processing

Once the application is prepared, My Auditor will submit the TAN Application to the Tax Department. My Auditor is a TAN Facilitation Center.

 

STEP - 3Untitled

TAN Allotment

Once the application and the attached supporting documents are verified, the Tax Department will allot a TAN Number for your business.

 

DOCUMENTS REQUIRED FOR TAN REGISTRATION


hand_1   Certificate of Company Registration

 hand_1   Company PAN Card

 hand_1   PAN Card and Aadhar Card of authorized person

 hand_1   Partnership Deed (if required)

ADVANTAGES OF A TAN REGISTRATION  


Lifetime Validity

TAN is issued with life time validity

 Adherence of Statutory Compliances

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 Registration

Rs. 1,499 all-inclusive


Frequently Asked Questions (FAQ's)?

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)

  • This application form should be used when deductor has never applied for a TAN or does not have a TAN.

Form for change or correction in TAN data for allotted TAN

  • This application form should be used by deductors in case they want a change or correction in data associated with their 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/-.