TAN | Tax Deduction & Collection Account Number — Explained

This document covers

1. What is TAN?
2. Who are required to apply TAN?
3. Transaction for which quoting TAN is mandatory
4. How to Apply for TAN?
5. Estimated processing time to get a new TAN?
6. Inter — changeability of TAN with the PAN
7. Penalties

1. What is TAN?

TAN means Tax Deduction Account Number or Tax Collection Account Number.

TAN is a 10-digit alpha numeric number issued by Income Tax Department.

TAN enables the persons to deduct TDS/TCS on specified transactions

The 10 digit alphanumeric numbers in TAN represents the following

• First 3 Digits — are alphabets and represents the Jurisdiction code (city code)
• 4th Digit — is an alphabet, which represents the initial of name of TAN holder
• Next 5 digits are numerical
• Last digit is an alphabet

2. Who are required to apply TAN?

Every Person who is required to deduct TDS or collect TCS is required to apply for TAN. Refer "exception note" on very few situations where PAN can be used in place of TAN

The following persons if they are required to deduct TDS or collect TCS are required to apply for TAN

• Individuals
• HUF
• Firm/LLP
• Companies
• AOP/BOI/AJP
• Local Authorities
• Government Entities

3. Transaction for which quoting TAN is mandatory

TAN is required to be quoted in the following documents

• TDS Returns (Form 24Q, 26Q, 27Q)
• TCS returns (Form 27EQ)
• TDS or TCS Challan payments
• Statement of Financial Transactions (SFT) or Reportable Accounts
• Any other prescribed documents

4. How to Apply for TAN?

• TAN needs to be applied through NSDL- Proteantech i.e., https://tin.tin.nsdl.com/tan/form49B
• TAN Application needs to be submitted in Form 49B
• Copy of PAN and Address proof is required for submitting TAN application.
• The applicant needs to sign the acknowledgement generated after submitting online application in 49B and send the same to NSDL

Refer @ TAN Registration Service Plan & Pricing to apply a TAN number for you.

5. Estimated processing time to get a new TAN?

After applying and sending the documents to NSDL, it will take 7-15 working days time to get the new TAN. TAN will be issued to registered email address.

6. Inter — changeability of TAN with the PAN

PAN cannot be quoted in place of TAN. The tax deductor’s or collector’s are required quote only TAN in the required documents. If he don’t have TAN, he needs to apply for the same ASAP.

7. Penalties

• Tax Deductor or Collector cannot hold more than 1 TAN.
• Penalty of Rs 10,000 will be levied if the tax deductor or collector
  • Fails to obtain TAN
  • Quotes Incorrect TAN in the documents