TAN Registration – How to Apply Online, Fees, Form, Number, Status

April 23, 2021

8 min read

A company or individual that needs to deduct taxes at source (TDS) at the time of making specific payouts such as rent, salaries, payments to contractors, sub-contractors, etc. requires a TAN number. This is a unique 10 digit alphanumeric code that would thereon be needed every time a claim on TDS was being made. For this, one should apply for a TAN card which is issued by the NSDL on behalf of the Income Tax Department. This TAN card can be authenticated and verified easily on the official Indian government portal for TAN registration.

Who Can Apply for TAN Registration

The following mentioned individuals or entities would need to apply for TAN registration:

Non-profit organisations which need to make specific payouts above the stated threshold limit
Business branches which are making specific payments above the stated threshold limit
Any individual or entity which is needed to deduct tax at source when making payments such as salaries, to contractors, pay rent which exceeds Rs. 180,000 annually can apply for TAN registration.

Different Types of TAN Applications

Typically, there are two kinds of TAN applications, which are mentioned under here;

Application for the issuing of a new TAN
Form for correction or amendment in TAN data for the already allotted TAN.

Salient Features of TAN Registration

The following mentioned are the salient features of TAN registration;

1. TAN Status

This is a tax deduction account number known as the PAN. It is a 10 digit alpha-numeric code that the Income tax department issues to all the people that are responsible for collecting or deducting tax at source itself. This holds accountable for all profit as well as non-profit entities.

2. Sole Proprietorship

People who are salaried do not need to have any tax deducted at source but those that are running a proprietorship will need to obtain the tax collection number and have tax deducted at source wherever applicable.

3. Tax Deducted at Source (TDS) Payments

Tax deducted at source (TDS) needs to be paid into an official bank account. At this time, the Tax collection number needs to be quoted along with the use of Challan 28. Typically, the TDS of the preceding month needs to be paid on the 7th day of the following month.

4. TAN Facility Centres

There are several TAN facilitation centres that are run by expert teams to help obtain the tax collection number with least amount of hassle and paperwork. The moment the TAN application along with required documents has been submitted, this process is quick and efficient.

5. Swift Processing

The tax collection number can be obtained as quickly as one week from the time of the submission of the application and documents. This application needs to be submitted in a hard copy along with due identification proof papers and a self-attested copy of the address proof.

6. Validity Period

The generation of the TAN is a one-time process and is valid for a lifetime. This avoids hassles of revalidation and expiry. However, in case you surrender the same for some reason, you will need to re-apply.

Benefits of TAN Registration

There are several benefits of applying for a TAN such as;

When one files their TDS returns using TAN, the address and PIN code of the deductee gets auto-populated as per the instructions of the Income Tax department which offers complete transparency in taxation cases.
When TDS is filed using TAN, the status of booking gets documented which helps the deductor to track whether his or her return matches with the TDS statement that has been filed by him.
The various branches of several enterprises can make a TAN application separately for different TANs’ for that particular division or branch.
In addition to filing for TDS returns, TAN can also be used for creating payment challans and invoices of TDS/TCS certificates.

How to Create an Account for TAN Registration

The process of creating a TAN registration account can be done quite simply following the steps mentioned below;

Steps	How to
Step 1	a) Visit the official website www.tdscpc.gov.in b) Click on the ‘Register as Tax Deductor’ tab and follow the instructions.
Step 2	Create an account by filling all the required details and obtaining login credentials.
Step 3	Post creation of account, you will get a confirmation screen in which you can make edits and amendments before you accept.
Step 4	Once all the information has been confirmed, an email with necessary codes as well as an activation link will be sent to you.

Alternately, you can choose to speak with a customer care executive of one of the many companies that offer this service and get it done via them privately.

How to Apply for TAN

Applying for a TAN can be done either by contacting one of the many facilitation centres or directly online by self. The steps to follow when applying for a new TAN are:

1. Firstly, visit – https://www.tin-nsdl.com/services/tan/tan-introduction.html

2. Click on ‘TAN’ under the ‘services’ button

3. Click ‘Apply Online’ tab – https://tin.tin.nsdl.com/tan/form49B.html

4. Then select ‘New TAN’

5. A new page will pop up from which you can select ‘category of deductors’

6. After this, you will be directed to Form 49B

7. The form that will pop up will need to be fully filled and then click on ‘submit’

8. Once you confirm details, a screen of acknowledgement will have a drop down list that will have the following options:

Acknowledgement number (this will be a 14 digit code)
Applicant’s status
Applicant’s name
Payment details
Contact details
Specified space for signature

9. Save this acknowledgement form and take a print out of the same

10. The printout along with the required documents will then need to be sent to NSDL

Documents to be submitted

The following mentioned documents need to be submitted along with the application for TAN:

Proof of address of the registered office
Passport-sized photo as per specifications
PAN card of the enterprise
TAN application form
Identify proof of the company
Legal documents such as MOA, AOA, partnership deed, etc.

All in all, TAN registration is both, necessary as well as beneficial in keeping track of tax deducted at source along with personnel details. The application process is both, quick and easy with several companies offering to do this for you. The online application is most preferred and commonly used but for those looking to apply for this offline, agencies, and customer care executives are readily available to help.

TAN Registration FAQs:

1. Will a separate TAN be needed for the purpose of tax collection at source (TCS)?

No. The TAN which is assigned for TDS (tax deduction at source) can be utilized for TCS. In case, no TAN has been allotted, the registration for TAN needs to be applied for.

2. In case the TAN is not quoted by the deductor, is there any penalty associated?

It is compulsory for all filers to quote the TAN when TDS is required on all payments made. This TAN number needs to be mentioned in every communication that is related to the tax department. If mentioning this is omitted, a penalty fee of Rs.10000 will be levied. Even banks will not entertain TDS payments and returns in case the TAN number is not mentioned.

3. Is there a specific validity period for TAN?

The TAN is issued with the validity of a lifetime. This means that it is a one-time process that gives you a number which has an unlimited expiry date. If there are any edits and alterations in the data, the Income Tax department needs to be informed.

4. What is the time taken to issue a new TAN?

A TAN typically gets delivered within a duration of 7 – 15 working days. This can vary depending on the approval of the Authority of Government of India.

5. In case my TAN has not come in the expected time, who can I contact?

You will be provided a tracking number by the company you have applied through, which you can then use to track the mail.

6. Where can I get the 49B form?

You can download this form on the official NDSL website.

7. Can the application for TAN be made on plain paper?

No. The application can only be made on form 49B. No other forms of application will be entertained.

8. I get a salary on a monthly basis. Do I also need to apply for a TAN?

No. This is only applicable for proprietors and individuals that need to deduct tax on source.

9. Is is possible for the form 49B to be filled on a typewriter?

Yes. In caps lock and with good impressions, this will be allowed.

10. What constitutes as valid proof of address?

Your Aadhar card, driver’s license, voter’s ID, utility bills and PAN card will be considered valid address proofs.