Tax Deduction and Collection Account Number (TAN)

Income Tax

Relevant provisions: Section 203A of Income Tax Act, 1961

What is TAN number?

Tax Deduction or Collection Account Number or TAN is a 10-digit alphanumeric number required to be obtained by all persons who are eligible for deducting or collecting tax. According to the Income Tax Act, 1961, it is mandatory to quote TAN allotted by the Income Tax Department on all TDS returns. TDS guarantees that government’s collection of tax is proponed and therefore the obligation regarding paying tax is expanded.

The individual deducting the tax at source is needed to store the tax deducted to the credit of central government- citing the TAN number. Those who are salaried are not needed to initiate TAN or deduct tax at source.

Understanding TAN

  • The first four digits of TAN are alphabets, the next five are binary, and the last digit is an alphabet
  • The initial alphabet represents the TAN holder’s name, which can be that of a person, business, or other entity, and is represented by the fourth alphabet of the TAN.
  • The first three alphabets indicate the authority code

Applicability

Every person who deducts or collects tax at source needs to apply for the allotment of TAN

TAN registration

TAN registration can be done online as well as offline.

Registration process for Offline application

An application for allotment of TAN is to be filed in Form 49B and submit two copies to any TIN-FC. Addresses of TIN-FCs are available at the NSDL-TIN website (https://www.tin-nsdl.com). Just in case of an applicant, being a company, which has not registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. SPICe Plus (INC-32) specified under sub-section (1) of section 7 of the Income Tax Act for incorporation of the company.

Registration process for Online application

Step – I: The applicant can apply for TAN online at the NSDL-TIN website (https://tin.tin.nsdl.com/tan/index.html) and select “Online Application for TAN (Form 49B)”

Step – II: Select Category of Deductors from the drop down menu and click on “Select Button”;

Step – III: Fill out the requisite details on the form (Fill all mandatory fields (marked with *));

Step – IV: If the data submitted by applicant fails in any format level validation, a response indicating the error(s) will be displayed on the screen;

Step – V: Forms need to be re-submitted after rectifying the error(s);

Step – VI: In case form level error(s) do not exists a confirmation screen with data filled by the applicant will be displayed.

Step – VII: In case applicant required any amendment to the data displayed in the confirmation screen, it may choose the edit option.

Step – VIII: In case the displayed information is correct, applicant shall choose the confirm option.

Step – IX: On successful payment of Fees (in case the mode of payment is other than DD or Cheque) an acknowledgment slip will be generated. Following points to be remembered while making payment:

  • The fee for processing TAN application is  77.00 (  65.00 application charge + 18.00% Goods & Services Tax).
  • Payment can be made by
    • demand draft or
    • cheque or
    • credit card / debit card or
    • net banking
  • Demand draft / cheque shall be in favor of ‘Protean – TIN’.
  • Name of the applicant and the acknowledgment number should be mentioned on the reverse of the demand draft / cheque.
  • Demand draft shall be payable at Mumbai.
  • Applicants making payment by cheque shall deposit a local cheque (drawn on any bank) with any HDFC Bank branch across the country (except Dahej). The applicant shall mention TAN Protean on the deposit slip. List of HDFC Bank Branches.
  • Credit Card / Debit Card / Net Banking payment
  • Facility of making payment by credit card / debit card / net banking is not available for below mentioned categories:
    • Central Government / State Government and
    • Statutory / Autonomous Bodies

Step – X: Applicant shall save and print the acknowledgment and send it to Protean (formerly NSDL eGov) alongwith requisite documents at

Protean eGov Technologies Limited, 
4th floor, Sapphire Chambers,
Baner Road, Baner
Pune - 411015

The envelope should be superscribed as ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’).​ Acknowledgment and demand draft, if any, should reach Protean within 15 days from the date of online application. Application will be processed only on receipt of duly signed acknowledgment and realisation of payment.

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

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