What is a TAN?

What is the relevance of TAN?

Individuals or businesses are expected to deduct or collect tax at the source if it exceeds the specified limit. This can be the tax deductions in employee salaries, interest received on deposits, dividends received on shares, etc. This is where TAN or Tax Deduction and Collection Account Number is relevant, as it needs to be quoted when processing these transactions.

Who Should Apply for TAN?

Any person or business that is responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) will be required to apply for and have a Tax Deduction and Collection number or TAN. It is a mandatory mention in all TCS or TDS transactions.

This also includes any e-TDS/TCS returns, certificates or payment challans.

What is TAN Number - Meaning and Structure

The 10-digit alphanumeric number an individual or business needs to deduct tax at source or collect tax at source is the Tax Deduction and Collection account number or TAN Number. Allocation of TAN is done by the Income Tax department based on the application. Once the TAN is issued, this number has to be mentioned in all the correspondences which are related to TDS and TCS. The current structure of the TAN is 4 alphabets at the start, 5 numerals after that and concludes with another alphabet.

This combination forms the structure of the TAN:

• The first 3 alphabets are the state where the TAN holder resides or conducts business.
• The following 4th alphabet is the initial of the holder’s name.
• 5 numbers after the 4th alphabet is an exclusive number allotted to the individual or business. This will be a unique number associated with the individual or business.
• The last alphabet is also an identifying alphabet generated by the system.

Importance of TAN Number

The Income Tax Act, 1961 states that under Section 203A, any person or business that deducts or collects tax at source will have to apply for a TAN. This section also states that this number has to be compulsorily quoted while filing TDS or TCS returns, challans, including e-TDS/TCS, certificates, or any other documents as needed.

Failure to quote the TAN in the required documents attracts a penalty. The person or business involved will be required to pay Rs 10,000/-as penalty charges.

How to get a TAN number?

Once you know what is a TAN number and you need to apply for one, you can get a the same by following the steps below:

Steps to apply for TAN Online:

Here’s how you can apply for a TAN Online:

• Visit the NSDL site at https://tin.tin.nsdl.com/tan/index.html
• Select Online Application for TAN (Form 49B)
• Select Category of Deductor from the drop-down menu
• Fill all the mandatory details and ensure that all the information is accurate
• At the bottom of the page, you will pay the processing fees once the form is completed accurately.
• It can be done through a Demand Draft, cheque or through Net Banking
• Demand Draft/Cheque (in favour of 'Protean - TIN' for 77). You will need to mention the applicant's name and the acknowledgement number at the back of the DD or cheque.
• If you have chosen Net Banking or payment through Credit/Debit Card, you will receive an acknowledgement number once the payment is successfull
• You will be required to sign this receipt in the provided space
• If you choose to make a thumb impression, it must be of your left hand. This has to be further attested by a Magistrate, a Notary, or a Gazetted Officer with their official seal and stamp
• This acknowledgement receipt needs to be sent to:
  Protean eGov Technologies Limited,
  4th floor, Sapphire Chambers,
  Baner Road, Baner,
  Pune – 411045
• Your application for the TAN acknowledgement number needs to be mentioned on the envelope.

Steps to apply for TAN Online - using Digital Signature Certificate

You can also apply for TAN Online using your Digital Signature Certificate or DSC

• Visit the NSDL site at https://tin.tin.nsdl.com/tan/index.html
• Select Online Application for TAN (Form 49B)
• Since you are using your DSC, you will first need to ensure that all the pre-requisites to apply for DSC are fulfilled, and that the utility is already installed on your computer
• Select Category of Deductor from the drop-down menu
• Fill all the mandatory details and ensure that all the information is accurate
• After the form is filled, insert your DSC
• You will see an Authorised Signatory drop-down menu.
• You will need to pay the processing fees through Net Banking.
• Once payment has been made, you will receive the acknowledgement number.
• Since it’s a DSC-based application, you will not be required to send the signed receipt to NSDL.

Steps to apply for TAN Offline:

If you want to apply for a TAN offline, you will need to follow the below steps:

• Visit https://www.protean-tinpan.com/downloads/tan/tan-downloads.html and download Form 49B. Alternatively, you can also visit one of the TIN Facilitation Centres (TIN FC) to collect the form
• Fill the form in block letters only and preferably in English with black ink.
• The applicant must have an Indian address
• Submit the duly signed Form 49B at the nearest TIN FC. You can also place your left thumb impression. If so, it should be attested by a Magistrate, a Notary or a Gazetted Officer with their official seal and stamp
• There is no need to send any supporting documents with the application form
• You will need to pay the processing fees in cash at the counter.

What documents are required to be submitted along with a TAN Application?

You do not need to submit any documents with your TAN application. If you are filling out the form online without the DSC, you will need to send the acknowledgement receipt to NSDL. The application acknowledgement number should be mentioned on the envelope as well.

What are the modes which are available for payment of fees?

There are multiple ways to pay the processing fees:

• You can issue a Demand Draft in favour of 'Protean - TIN'
• A cheque can also be issued in favour of 'Protean - TIN.'
• Payment can also be made through Net Banking
• If you are using the offline method to apply for a new TAN, you will need to pay Cash at the TIN FC counter.

Let us tell you how you can download TAN online

If you are wondering where to find your TAN number details, you can search online. Listed below is the process to find TAN details online:

• Visit e-Filing Portal https://www.incometax.gov.in/iec/foportal/
• On the left side, you will find Quick Links. You will need to click on ‘Know TAN Details’
• You will be directed to a page where you will need to enter the details to do a TAN search
• First, choose the category of deductor
• Next, write the name of the deductor
• Mention the state
• Provide the registered mobile number
• Click Continue
• You will receive a one-time password on the number
• Once you verify the password, click validate
• You will receive the TAN details on the next screen.

You can also follow the same process to find the TAN of the deductor online. TAN certificate download can also be done online.

Frequently Asked Questions

Do I need to pay if I want a TAN number?

Yes, you will need to pay Rs 77 as a processing fee when you are applying for a TAN. This is inclusive of Goods & Service Tax.

Who should my Demand Draft be addressed to?

The Demand Draft should be in favour of Protean – TIN.

If I get a duplicate TAN, which one should be utilised?

If a duplicate TAN has been issued, you should use the one used frequently and regularly. The other TAN should be surrendered and cancelled. This can be done by using ‘Form for Changes or Correction in TAN’.