Overview

A Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric number issued by the Income Tax Department of India. It is required by all entities or individuals who are responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961.
TAN ensures proper credit of tax deducted to the government and enables filing of TDS/TCS returns accurately.

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Eligibility / Who Should Apply

• Businesses, companies, and LLPs making payments that require TDS (e.g., salaries, rent, contractor payments, professional fees)
• Government departments, trusts, and societies responsible for tax deductions
• Banks, institutions, and educational organizations making interest or contractual payments
• Individuals required to deduct tax while making specific payments exceeding prescribed limits

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Key Features

• Unique 10-digit alphanumeric number allotted by the Income Tax Department
• Mandatory for filing TDS/TCS returns and issuing Form 16 / Form 16A
• Helps the government track tax deductions and collections at the source
• Required for all entities deducting TDS under Sections 192 to 206 of the Income Tax Act

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Step-by-Step Process

1. Select the Correct Application Form:
   • Form 49B – Application for allotment of TAN (for Indian entities)
2. Fill in Required Details: Include entity name, address, business type, and responsible person’s details.
3. Attach Supporting Documents: Provide business registration proof, PAN, and address verification.
4. Submit the Application: File online through the TIN-NSDL portal or Protean eGov portal, or offline at authorized centers.
5. Receive TAN Allotment: Upon approval, the Income Tax Department issues a TAN allotment letter or acknowledgment slip.

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Documents Required

• PAN of the entity or individual
• Proof of registered office address (Rent Agreement / NOC / Ownership Proof)
• Business registration document (Certificate of Incorporation / Partnership Deed / Trust Deed)
• Authorized signatory’s Aadhaar and photograph
• Contact details (email ID and mobile number)

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Timeline

The TAN is generally issued within 5–7 working days after successful submission and verification of the application.

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Post-Issuance Requirements

• Quote TAN in all TDS/TCS challans, returns, and certificates
• File quarterly TDS/TCS returns within prescribed due dates
• Use TAN for all communications related to tax deductions or collections
• Keep TAN details updated in case of address or structure changes

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Penalties for Non-Compliance

• Failure to apply for TAN before deducting TDS attracts a penalty of ₹10,000 under Section 272BB of the Income Tax Act
• Quoting an incorrect TAN in filings may result in fines and rejection of TDS returns
• Late filing of TDS/TCS returns leads to penalties under Section 234E and 271H

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Kanoons Service

Kanoons Law & Tax Consultants Pvt. Ltd. offers quick and reliable TAN Application and Compliance services for individuals, businesses, and institutions.

Our services include:

• Preparation and filing of Form 49B online or offline
• Guidance on supporting documents and compliance requirements
• Retrieval of TAN acknowledgment and confirmation letter
• Assistance in TDS return filing and corrections
• Updates for address or responsible person changes

Kanoons ensures your TAN registration is processed smoothly and all related compliances are maintained accurately.

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Why Choose Kanoons

• Fast and hassle-free online TAN application process
• Transparent pricing and real-time tracking
• End-to-end compliance assistance for TDS/TCS returns
• Support for businesses, startups, and organizations nationwide
• Reliable post-registration guidance and updates