TAN number is an abbreviation of Tax Deduction and Collection Account Number. It’s a 10 digit alphanumeric number issued by the Income Tax Department. TAN has to be obtained by all the people who are responsible for deducting tax at source (TDS) or the person who is responsible to collect tax at source (TCS).
Structure of TAN
Each digit of Tax Deduction and Collection Account Number represents different aspects. TAN is an alphanumeric number in which first four digits are alphabets, the next five digits are numeric and an alphabet at the last.
First three alphabets of Tax Deduction/Collection Account Number represent the code of jurisdiction; forth alphabet represents the TAN holders name with the initial letter of name. TAN holder can be individual, firm, company etc. The last alphabet is a random one. For an instance, TAN number allotted to Mr. Atul of Bangalore may look like BLR A 23456 M
Under the provisions of Section 203A of the Income Tax Act, 1961, it’s mandatory for every TAX deductor to mention the TAN number in all the below documents. If TAN is not quoted, payments of TDS/TCS will not be accepted by banks. Refund of TDS will also not be made if the TAN is quoted.
- TCS Statements
- TDS Statements
- Annual Information Return
- TDS/TCS Certificates
- TDS/TCS payment Challan
- Other prescribed documents
As per the provisions of Section 203 A of the Income Tax Act, the one who deducts or collects tax at source needs to apply for the allotment of Tax Deduction/Collection Number. If the person fails to apply for TAN or any non-compliance to the rules specified as per Section, penalty of Rs. 10,000 has to be paid.
Process of Obtaining TAN
Tax Deduction/Collection Number is allotted by the Income Tax Department on the basis of application received at TIN Facilitation Centres at NSDL. TAN will then be intimated by NSDL to deductors. TAN number allotted should be mentioned in all the prescribed documents.TAN can be obtained in both online mode and offline mode.
- Offline Mode
Form 49B, an application for the allotment of Tax deduction and collection account number has to be filled in duplicate and submitted to any NSDL TIN-facilitation centres. Address of the TIN- facilitation centre can be taken from NSDL site https://www.tin-nsdl.com. Forms can be downloaded from the official website of the Income Tax Department. Hard copy of forms is also available at TIN-facilitation centres.
Form No. INC-7 specified under sub-section (1) of section 7 has to be used by companies which have not registered themselves under the Companies Act, 2013 for the application of allotment of Tax deduction/collection account number.
- Online Mode
Online application for the allotment of TAN can be placed via NSDL-TIN website. All the required information and details are to be filled in correctly along with communication address and email ID. PAN number has to be mentioned mandatorily on the application. If the deductor has Tax Deduction/Collection Account number in an old format, same needs to be mentioned in the necessary field.
Applicants need to make a payment of application fee of Rs. 63 + service tax. The payment can be made by demand draft/cheque/credit card/debit card/net banking. Central government, state government, statutory or autonomous bodies can make payments only by cheque or demand draft.
On submission of TAN application and payment of processing fees, a 14-digit acknowledgement number will be received. Acknowledgement comprises of status of applicant, name of the applicant, contact details (address, email ID and contact number) and payment details. On allotment of the TAN number, intimation will be sent by NSDL to the applicant.
In case of payments made by credit card/debit card/net banking, TAN will be allotted within 5 working days of online application submission. For other cases, expected turnaround time is 15 days. TAN application status can be tracked easily online.
Documents Required for TAN application
In case you are applying through offline mode, you don’t need to submit any document. However, if the application is placed via online route, you need to duly sign the acknowledgement generated on successful submission and payment of processing fee towards TAN application. Signed acknowledgement needs to be sent to NSDL-TIN facilitation centres. Address will be available on the acknowledgment slip.
Read more: documents required for apply new PAN Card
Important Points to Remember
- You don’t need a separate tax deduction/collection account number for TDS deductions of property. A single TAN can be used for all types of collection and deduction (salary, interest, commission, property etc). However, category of TAN holder should remain same for all transactions. For example, if you are buying a property in your name then your company’s TAN cannot be used. Company’s TAN can be used for TDS deduction/deposit only if you are buying property in company’s name.
- It’s important to quote the correct TAN number in the necessary documents
TAN deduction/collection account can be identified with Tax deduction /collection account number (TAN). People who are regulating deduction or collection of tax on payments are required to know their tax deduction/collection account number (TAN). The Income Tax Department has an online facility called ‘’Know Your TAN’’ through which a person can check the TAN details with the help of company’s name or TAN number. The process of verification is easy and simple.
Process of Verifying TAN Online
To verify TAN, you need to long on to e-Filing website of the Income Tax Department. Below instructions need to be followed after logging in:
- Click on ‘’Services’’ tab and select ‘’Know Your TAN’’ from the dropdown menu
- Choose the deductor type from category of deductor as mentioned below
- Branch of Company
- Central or State Government
- Statutory Body/ Local Authorities/ Autonomous Bodies
- Firms/ AOP (Trust)/AOP/ Artificial Judicial Person/ Body Of Individuals
- Branch of individual business/ Hindu Undivided Family (Karta)
- Branch of firms/ AOP (Trust)/ AOP/ Artificial Judicial Person/Body Of Individuals
- Individual/ Hindu Undivided Family (Karta)
- Choose your state from the dropdown menu.
- You can choose to search via TAN or Name
- As per your preference, enter your Name or TAN number
- Mention the Captcha code as it appears on screen
- Then click on ‘’search’’ button to generate your results
It’s that simple! A screen will appear containing your TAN details. It will show the details such as TAN number, Name of the deductor, category of the deductor, permanent account number (PAN), Status, area code, contact details, range code, AO type, AO number, AO description along with address.
TAN Verification by Name
- Log on to official website i.e., www.incometaxindiaefiling.gov.in.
- Click on the services tab on the left side of the home page and go to an option called ‘Know your PAN | TAN | AO’.
- Log in using your User ID and password after clicking on TAN option.
- Once you log in, ‘Know Your TAN’ page will appear on the screen
- Search type has to be ‘Search By Name’
- Type the full name of the deductor; you can just mention the first name. List of companies will appear that matches your search. Choose the correct deductor from the given list in the dropdown menu.
- Next step is to select the state from dropdown menu
- Enter all the details in the compulsory fields.
- Click on search button after entering the Captcha code.
- Results will have the complete TAN details for the mentioned company name.
TAN Verification by TAN Number
- Visit the official website of Income Tax Department i.e., www.incometaxindiaefiling.gov.in.
- Choose ‘Know your PAN|TAN|AO’ from the Services tab
- Login with user ID and password and choose the search type as ‘TAN’
- Select the state and deductor
- You just have to enter the 10-digit alphanumeric TAN in the required field.
- Click on search after entering Captcha code.
- Results with the TAN details will be displayed.
A deductor can have only one Tax deduction/ collection account number for one category. Having more than one TAN is considered illegal. It’s important to do TAN registration online to verify your TAN. Registration process is quite simple. You just have to follow some simple steps for TAN registration.
Process of TAN Registration
Below mentioned process has to be followed for registration of tax deduction/collection account number (TAN).
Step 1: Apply Online For TAN Registration
- Logon to NSDL-TIN website www.tin-nsdl.com
- Click on “Online TAN Registration” link reflecting under “Online Services” tab
- This will take you to new page; you will have to click on Register for TAN online link
- Now you can access ONLINE TAN REGISTRATION FORM
- Correctly fill up the necessary details and information like TAN, PAN, Name & other necessary particulars as under:
- Details of Deductor such as name, category etc
- Contact details of the Deductor such as communication address, contact number and email ID
- Mention details of regular statements accepted
- Click on the submit button, a confirmation screen will appear. Click on confirm button after checking all the details.
- After confirming, “Acknowledgement for TAN Registration” will be generated, note down the same. You can also get the printout for record.
- You will receive TIN on your email ID with the subject line “Acknowledgement for TAN Registration”.
Step 2 Confirmation of TAN Registration
- After the above intimation, you will receive another e-mail with the subject line “Confirmation for TAN Registration”
- Click on the link provided in the email and fill in your TAN Registration Number‟ and give a User ID as per instruction
- Click on “Check User ID Availability” to know the availability of user ID given by you
- If the mentioned User ID is not available, you can provide another User ID and click on link “Check User ID Availability” for checking again
- If the mentioned User ID is available, then click on Submit Button for further processing.
Step 3: Allotment of Password by NSDL-TIN
One more fresh mail will be received on your e-mail Id form NSDL-TIN comprising your User ID and Password.
Step 4: Request for Consolidated FVU
- Log on to website www.tin-nsdl.com
- Click on Login button
- Choose & click on “TAN Registration”
- Provide your TAN, User ID and Password (received through e-mail by NSDL-TIN as mentioned above) and then click on Submit button
- For the first time submission, it will ask for change the password
- Set the New Password and note it down.
- Once you login, click on request for consolidated TDS/TCS statement.
- Fill up the necessary details on the screen
- New screen will appear once you submit the details, Fill up the necessary details again
- You will now receive consolidated FVU file on your registered email ID. This file will be protected with password which is your 15 digit provisional receipt number. Once you open the zip file you can extract TDS files out of it. This is equal to FVU file. This FVU file is for the period that pertains to provisional receipt number. File will have all the entries as amended by correction return if any. This TDS file will have only entries of accepted returns.
Benefits of TAN Registration and Verification
- From the database of updated active TAN details, Deductor can easily receive communication from the Income Tax Department regarding Tax collected at source (TCS) and Tax Deducted at Source (TDS)
- Every deductor will have authenticated login area
- Deductors will also have below previsions or benefits to download the latest Input file (FVU) for the purpose of preparing correction statement and check the challan status online.
- The deductor can receive a statement showing the status of tax deducted at source (TDS)
- Reconciliation of tax deducted at source (TDS) to TAN holder with regards to Section 200A.
- Deductor can easily upload Tax deducted at source (TDS) returns online
- That’s it! Registration and verification of TAN is quite simple and easy. You can know your TAN details just by providing name or TAN number.