Allotted by the IT department, TAN is a 10-digit alphanumeric identifier for individuals or entities required for tax deduction. When filing for tax deducted at source (TDS) or tax collected at source (TCS), quoting TAN is a pre-requisite. TAN is a 10-digit alphanumeric identifier for individuals or entities that deduct or collect tax at source.
Tax Deduction and Collection Account Number (TAN) is required primarily for entities responsible for deducting or collecting tax on payments made under the Income Tax Act, 1961. It serves as a unique identification number issued by the Income Tax Department to monitor tax transactions and ensure compliance. TAN is necessary for entities like businesses, employers, and contractors who deduct TDS (Tax Deducted at Source) or collect TCS (Tax Collected at Source). It helps the government track tax payments accurately, prevent tax evasion, and ensure that the correct amount of tax is deducted and deposited to the government treasury.
Tax Deduction and Collection Account Number (TAN) is required by entities and individuals who are mandated to deduct or collect tax at source under the Income Tax Act, 1961. This includes employers making salary payments, businesses paying rent, interest, or professional fees exceeding specified limits, contractors involved in contracts where TDS applies, government agencies, banking companies, and other entities specified by the Income Tax Department. TAN ensures compliance with TDS regulations, and applicants must file Form 49B to obtain TAN from the relevant Assessing Officer. It is essential for proper tax administration and ensures that taxes are deducted at the source as required by law.
TAN applications are of two types – application for allotment and application for change or correction.
Additional Read: How to apply for a PAN card online
Any documents need not to accompany the TAN allotment application. However, if the online mode is chosen, the acknowledgement generated on submission of the form needs to be downloaded, signed, and forwarded to national securities depository limited (NSDL) by post.
If you want to track the status of your TAN application, you can use the 14-digit unique acknowledgement number. You can contact the TAN call centre (020-27218080) or send an SMS (NSDLTAN) to 57575 to track the status of TAN application.
Additional Read: Difference between TAN, PAN, and TIN
To get form 49B, you must follow these steps:
When applying for TAN through Form 49B, keep the following guidelines in mind to ensure a smooth application process:
Following these points ensures your Form 49B is correctly filled and helps avoid unnecessary delays in the TAN application process.
An application for allotment of TAN may be made either online or offline. A written set of guidelines are available to make this process easier for the applicants.
The processing fee for a TAN application is Rs. 77 (which includes an application charge of Rs. 65 and 18% GST). Please note that this fee is non-refundable, even if the application is rejected. Payment can be made via demand draft or cheque, drawn in favour of NSDL-TIN.
For online payments, only authorised individuals are allowed to make the payment, depending on the applicant category, as outlined below:
Category of Applicant |
Authorised Person for Payment (Credit/Debit Card or Net Banking) |
Company / Branch / Division of a company |
Any director of the company |
Individual (Sole Proprietorship) / Branch of an individual-owned business |
Self |
Hindu Undivided Family (HUF) |
Karta |
Firm / Branch of a firm |
Any partner of the firm |
Association of Persons / Body of Individuals / Trusts / Artificial Juridical Persons |
Authorised signatory as per Section 140 of the Income Tax Act, 1961 |
Once Form 49B is submitted, the income tax department will review the provided information. If all details are found to be accurate, NSDL will dispatch the TAN to the applicant's address mentioned in the form. For online applications, TAN details may also be sent via email.
When paying the TAN application or correction fee, here is what you need to do:
If an applicant chooses to pay the fee by credit/ debit card, they will have to bear an additional charge of up to 2% (plus applicable taxes) of the application fee. If you choose net banking as a payment gateway, an additional amount of (Rs. 4 + GST) will be charged.
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No, you don't need to apply for a new TAN (Tax Deduction and Collection Account Number) if you relocate to a different city within the same state. However, if you move to a different state, you must apply for a new TAN as it is issued based on state-wise jurisdiction.
No, you cannot use your PAN (Permanent Account Number) in place of TAN (Tax Deduction and Collection Account Number) when filing TDS (Tax Deducted at Source). TAN is specifically issued for TDS purposes, whereas PAN serves as a unique identifier for various financial transactions and income tax-related activities.
If a duplicate TAN (Tax Deduction and Collection Account Number) has been allotted, it is essential to surrender the additional TAN immediately to the Income Tax Department's TAN Unit. This can be done by submitting a letter to the TAN Unit, explaining the situation and providing details of the original TAN that should be retained.
TAN stands for Tax Deduction and Collection Account Number. TAN is a unique 10-digit alphanumeric identifier issued to individuals or businesses who are required to deduct or collect taxes at source on behalf of the government. TAN is used to track and monitor tax payments made by taxpayers.
Yes, you can apply for TAN number online by visiting the NSDL or UTIITSL website, where you can submit your application and make the payment online. You can also track the status of your application online and receive your TAN number via email.
