What is TAN ?

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in all TDS/TCS returns (including e-TDS/TCS return), TDS/TCS payment challans and TDS/TCS certificates.

Why it is necessary to have TAN ?

Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (e.g. individual, firm, company etc.) is issued a unique PAN.

The provisions of Section 203A of the Income-tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS/TCS/Annual Information Returns, payment challans and certificates to be issued. If TAN is not quoted, TDS/TCS returns will not be accepted by TIN-facilitation Centres (TIN-FCs) and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000

All those persons who are required to deduct/collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.

What is the procedure for obtaining TAN?

An application for allotment of TAN is to be filed in Form 49B and submitted to any TIN-FC.

How TAN will be allotted?

TAN is allotted by the Income Tax Department on the basis of the application submitted online at NSDL e-Gov -TIN website or to TIN-FCs managed by NSDL e-Gov. NSDL e-Gov will intimate the TAN to the applicant at the address provided in the application.

Is separate application required for Tax Collection at Source?

No. TAN which was allotted for Tax Deduction at Source (TDS) can be used for the purpose of TCS. However, if no TAN has been allotted, a duly filled in Form 49B, along with the application fees should be submitted at any TIN-FC. Taxcellent helps you in filing TAN application before Income tax department.