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What is TAN (Tax Deduction and Collection Account Number)?

TAN - Tax Deduction Account Number or Tax Collection Account Number - is a ten-digit alphanumeric number issued by government agency Income Tax Department. TAN is to be obtained by individuals responsible for deducting tax at source (TDS) or collecting tax at source (TCS). The rules pertaining to the same can be found under Section 203A of the Income Tax Act, 1961. However, a person who has to deduct tax under Section 194-IA of the Income Tax Act does not have to obtain TAN, rather he or she can use their PAN instead.

Who can Apply for TAN?

If one is paying salary or a commission to another, the entity must have a TAN. This can include:

  • Individuals

  • Hindu Undivided Family

  • Company

  • Central or state government or a local authority

  • Sole proprietor

  • Firms

  • Associations of persons

  • Trusts

How to Apply for TAN?

There are two modes by which an individual can apply for TAN. They are online and offline.

Online:

Application for TAN can be made online through the website of NSDL TIN website.

The online application procedure for TAN (Form 49B) is as under:

Step 1 - Fill Form 49B online and submit the form.

Step 2 - Check for errors. In case any discrepancy is spotted, rectify it and re-submit the form.

Step 3 - A confirmation screen will be displayed mentioning all the data filled in by the applicant.

Step 4 - The applicant can either edit or confirm the same.

Acknowledgment

An acknowledgment screen will be shown once the applicant has completed Step 4. The acknowledgment comprises of:

  • A unique 14-digit acknowledgment number

  • Status of applicant

  • Applicant's name

  • Contact details

  • Payment details

  • Space for signature

Payment

The fee charged for processing TAN application is Rs. 65. The payment for the same can be made via demand draft or cheque or credit card or debit card or net banking. In case an applicant chooses the demand draft or cheque mode, he or she will have to write it in favour of 'NSDL - TIN'. The name of the applicant and the acknowledgment number have to be mentioned on the reverse side.

The facility to make payment by credit card, debit card or net banking is not available for Central Government, State Government and Statutory / Autonomous Bodies. Entities authorised to make credit card, debit card or net banking payment are as below:

Category of applicantAuthorized person whose debit card, credit card or net banking can be used to make the payment
Branch / Company / Division of a companyA Director of the Company
Branch of individual business / Individual (Sole Proprietorship) Self
Hindu Undivided Family (HUF)Karta
Firm / Branch of firmAny partner of the firm
Body of Individuals / Association of Persons / Association of Persons (Trusts) / Artificial Juridical PersonAuthorized signatory who falls under section 140 of Income Tax Act, 1961.

Offline:

In case an individual wish to apply for the allotment of TAN through the offline mode, he or she has to fill up and submit Form No 49B at any one of the Tax Information Network Facilitation Centres. Applicants can obtain the application form from TIN-FCs. Other vendors providing this form can download the same from NSDL TIN website. Addresses of TIN FCs can be viewed on the NSDL TIN website.

Documents Required for TAN Application

There is no need to attach any document with the application for allotment of TAN. But, when the application is being done through the online mode, the acknowledgment, which gets generated after filling up the form, will have to be forwarded to NSDL.

The acknowledgment duly signed, along with demand draft (if any) shall be sent to NSDL at the below address:

NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune - 411016

Use of TAN Number

Tax deductors get uniquely identified by their ten-digit TAN. Some of the uses of TAN are:

  • It has to be quoted in TDS/TCS returns, payment challans and certificates that are to be issued.

  • It is used for deductions, such as salary, interest, dividend, etc.

  • It records the address of the person who deducts the tax on behalf of the IT department. Additionally, it captures the PIN that is recorded with the department.

Correction of TAN

To make any request for changes or corrections, an individual has to fill up and submit Application for Changes or Correction in TAN Data for TAN allotted. For corrections or changes in TAN data, an applicant has to fill in all mandatory fields of the form and choose the corresponding box on the left margin of appropriate field where correction is necessary. Request for TAN change can be made for 'change of category of the applicant' only when the category is wrongly listed in the Income Tax Department’s TAN database.

The documents to be submitted along with the application include proof of TAN and necessary documentary proof that supports the request for correction or change in TAN. Should the applicant look to change the address to that of a different city, and the new address comes under a different RCC (Regional Computer Centre of IT Department), the applicant has to make an application for a new TAN in Form 49B.

FAQs

What is the full form of TAN?

TAN is short for Tax Deduction and Collection Account Number.

Why should I apply for TAN?

TAN is to be obtained by individuals responsible for deducting tax at source (TDS) or collecting tax at source (TCS). The rules pertaining to the same can be found under Section 203A of the Income Tax Act, 1961.

TAN has to be quoted in TDS/TCS returns, payment challans and certificates to be issued. It is used for deductions such as salary, interest, dividend, etc.

How do I get a TAN number?

TAN is a ten-digit alphanumeric number that is issued by government agency Income Tax Department. There are two modes by which an individual can apply for TAN. They are online and offline.

Online - Application for TAN can be made online through the website of NSDL TIN website.

The online application procedure for TAN (Form 49B) is as under:

Step 1 - Fill Form 49B online and submit the form.

Step 2 - Check for errors. If any discrepancy is spotted, rectify it and re-submit the form.

Step 3 - A confirmation screen will be displayed with all the data filled by the applicant.

Step 4 - The applicant can either edit or confirm the same.

Offline - In case an individual wants to apply for allotment of TAN via the offline mode, he or she has to fill up and submit Form No 49B at any one of the Tax Information Network Facilitation Centers. Applicants can obtain the application forms from TIN-FCs, other vendors providing this form or download the same from NSDL TIN website. Addresses of TIN FCs can be viewed on the NSDL TIN website.

How can I know my TAN number?

In case you don’t recall your TAN, you can find it online by making use of the ‘Know Your TAN’ facility provided by the Income Tax Department.

How do I know my employer's TAN?

You can find the TAN of your employer in Form 16, Form 16A or Form 26AS.

Is TAN number mandatory?

TAN is required to be obtained by individuals who are responsible for deducting tax at source (TDS) or collecting tax at source (TCS). One can find the rules pertaining to the same under Section 203A of the Income Tax Act, 1961. However, an individual who has to deduct tax under Section 194-IA of the Income Tax Act is not required to obtain TAN, rather he or she can use PAN instead.

Who provides the TAN?

The Income Tax Department is responsible for allotting TAN based on the application submitted by companies or employers to Tax Information Network or TIN Facilitation Centres. The Centres are managed by National Securities Depository Limited (NSDL).

Is there a different TAN for TDS and a separate one for TCS?

No, you don’t have to get a different TAN for TDS and TCS. Transactions involving the two can be done using the same TAN.

Is it okay if I have the PAN but not the TAN?

No. You need to obtain a TAN if you are responsible for TDS or TCS deductions. You cannot enter the PAN in places where TAN is necessitated. However, a person who has to deduct tax under Section 194-IA of the Income Tax Act does not have to obtain TAN, rather he or she can use PAN instead.

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