TAN रजिस्ट्रेशन

TAN (Tax Deduction and Collection Account Number) is a unique 10-digit alphanumeric number allotted by the Income Tax Department to any person or entity required to deduct TDS or collect TCS. It must be quoted on all TDS/TCS returns, challans, and certificates issued by the deductor.

Any individual, company, LLP, partnership firm, proprietorship, or trust/NGO that is required to deduct tax at source on payments like salaries, rent, contractor fees, or professional fees, or collect tax at source on specified transactions, needs to obtain a TAN.

TAN is applied for using Form 49B, which can be filed offline at a TIN Facilitation Centre or online through the NSDL/Protean e-Governance portal, along with the applicable processing fee.

There is a small, nominal processing fee charged by NSDL/Protean for TAN applications. It is a modest one-time fee, not a recurring cost - we include this in our quoted package price.

TAN is typically allotted within a few working days of a correctly filed Form 49B application - delays usually happen when there is a mismatch between the details on the application and your PAN or incorporation documents.

PAN identifies a person or entity as a taxpayer for their own income tax purposes. TAN identifies an entity specifically in its role as a deductor or collector of tax on behalf of the government, when it deducts TDS or collects TCS from payments it makes to others. Most businesses need both, for different purposes.

Generally no - TAN must be quoted on TDS/TCS returns and challans, not PAN. One notable exception is TDS on the sale of certain immovable property under Section 194-IA, where the buyer uses PAN instead of obtaining a TAN, because it is typically a one-off deduction rather than a recurring compliance activity.

You cannot file TDS/TCS returns or deposit deducted tax correctly without a valid TAN. Deducting tax without a TAN, or quoting an incorrect TAN, attracts a penalty under Section 272BB of the Income Tax Act, in addition to potential difficulties for your employees or vendors in claiming TDS credit.

No. Once allotted, a TAN is valid for the lifetime of the entity and does not require periodic renewal, unlike some other registrations.

Yes. Any individual or proprietorship that is required to deduct or collect tax at source - for example, because their accounts are audited under Section 44AB and they make TDS-applicable payments - can and should apply for a TAN.

Yes, if the trust or NGO makes payments that require TDS deduction - such as staff salaries above the exemption threshold, rent, or professional fees paid to consultants and auditors above the applicable threshold - it needs to obtain a TAN before making those payments.

Generally, an entity should hold only one TAN for its overall operations, though certain large organisations with multiple deducting offices or branches may be allotted separate TANs for each office, depending on how deductions are administered. Duplicate TANs for the same office are not permitted and should be surrendered if found.

You need the applicant entity's PAN, proof of business or office address, and details of the person responsible for tax deduction. Companies, LLPs, firms, and trusts also need their incorporation or registration documents to ensure the entity name matches exactly.

Yes. Once your Form 49B application is submitted, an acknowledgement number is generated, which can be used to track your application status on the NSDL/Protean portal until the TAN is allotted.

Section 272BB of the Income Tax Act prescribes a penalty for failing to obtain a TAN when required, or for quoting an incorrect TAN on returns, challans, or certificates. It underscores that having and correctly quoting a valid TAN is a compliance obligation, not a courtesy.

You should have your TAN in place before you need to deduct TDS on the first salary payment that crosses the applicable threshold, so there is no gap in your payroll TDS compliance. It is worth applying as soon as you know you will need to deduct tax, rather than waiting until the deduction is actually due.