Tax Deduction and Collection Account Number (TAN)

Navigating the process of obtaining a Tax Deduction and Collection Account Number (TAN) can be complex. We offer comprehensive support to ensure a smooth and hassle-free experience.

Modes of Applying for TAN:

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Introduction

A Tax Deduction and Collection Account Number (TAN) is a unique 10-digit alphanumeric identifier issued by the Income Tax Department of India. Under Section 203A of Income Tax Act, It is mandatory for entities responsible for deducting or collecting tax at source (TDS/TCS) to obtain a TAN. TAN must be quoted in all TDS/TCS returns, payment challans, and certificates

Who Must Obtain a TAN?

The following categories are required to apply for and quote TAN in all relevant documents:

  • Employers: Deducting TDS on salaries paid to employees.

  • Businesses and Professionals: Making payments subject to TDS, such as contractor fees, professional charges, rent, interest, or commission.

  • Entities Collecting TCS: Collecting tax at source on specified transactions.

  • Government Departments and Local Authorities: Responsible for TDS/TCS activities.

  • Trusts, Societies, and Associations: Engaged in activities requiring tax deduction or collection at source.

  • Sole Proprietors and HUFs: If liable to deduct or collect tax at source.

Failure to obtain TAN or to quote it in the specified documents can lead to a penalty of ₹10,000 under Section 272BB of the Income Tax Act.

Exceptions

Certain individuals making specific transactions are permitted to use their PAN instead of TAN:

  • Section 194-IA: Deduction of tax on payment for transfer of certain immovable property.

  • Section 194-IB: Deduction of tax on rent paid by individuals or HUFs not liable to tax audit.

  • Section 194M: Deduction of tax on payments to resident contractors or professionals by individuals or HUFs not liable to tax audit.

  • Section 194S: Deduction of tax on payment for transfer of virtual digital assets by specified persons.

In these cases, quoting PAN suffices, and obtaining TAN is not required.

Offline Application

An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN Facilitation Centres (TIN-FC). Addresses of TIN-FCs are available at Protean-TIN website (https://www.protean-tinpan.com/).

In case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. SPICe (INC-32) specified under sub-section (1) of  section 7 of the said Act for incorporation of the company.​

Online Applications

Applying for a Tax Deduction and Collection Account Number (TAN) is a straightforward process through the Protean (formerly NSDL e-Gov) portal. Here’s a step-by-step guide:

Step 1: Fill Out Form 49B Online

  • Visit the official Protean TAN application page.

  • Select “Apply Online” and choose the appropriate category of deductor.

  • Complete Form 49B with accurate details.

  • Review the information and submit the form.

Step 2: Generate and Print the Acknowledgment

  • Upon submission, a confirmation screen will display your details.

  • Confirm the information to generate an acknowledgment containing:

    • A unique 14-digit acknowledgment number

    • Applicant’s name and contact details

    • Payment information

    • Space for signature

  • Print the acknowledgment and sign within the designated box.

Step 3: Payment of Application Fee

  • The processing fee is ₹77 (₹65 application charge + 18% GST).

Step 4: Submit the Acknowledgment and Payment Proof

  • Send the signed acknowledgment and payment proof (if applicable) to NSDL 

    Protean eGov Technologies Limited
    4th Floor, Sapphire Chambers
    Baner Road, Baner
    Pune – 411045                                                                                                                                                                                                                              Ensure the envelope is superscribed with “APPLICATION FOR TAN – [Acknowledgment Number]”

     

  • The documents should reach Protean within 15 days from the date of online application.

Step 5: TAN Issuance

  • Protean will verify the application and forward it to the Income Tax Department.

  • Upon approval, TAN will be allotted and communicated to the applicant via:

    • Physical dispatch to the address provided in Form 49B

    • Email, if an email address was provided.

Documents Required for TAN Applications

No documents are required to be submitted along with application for allotment of TAN. However, for online application, the signed acknowledgment which is generated after filling up the form is to be forwarded to Protean-tinpan .

FAQs on TAN

is separate TAN required to obtain for the purpose of TCS ?

No, TAN allotted for TDS can be used for the purpose of TCS also. In other words, no separate TAN is required to obtain for the purpose of TCS, if the person already holds TAN for the purpose of TDS.

Can Taxpayer hold more than one TAN ?

No, It is illegal to possess or use more than one TAN. Different branches/ divisions of an entity may, however, have separate TAN. In case more than one TAN have been allotted, then the TAN which is being used regularly should be continued and the other TAN(s) should immediately be surrendered for cancellation using “Form for changes or correction in TAN” which can be downloaded from Protean-tin pan website or may be procured from TIN-FC.

How can any change in address or details on the basis of which TAN was allotted be ectified?

If there is any change in the data provided in the application for allotment of TAN (i.e. data provide at the time of allotment of TAN), then such change is to be communicated to the Income Tax Department by intimating the change in , the “Form for Change or Correction in TAN data”. Duly filed form should be submitted to the TIN Facilitation Centres or an online application can be made at https://www.protean-tinpan.com/

Can we quote Permanent Account Number (PAN) in place of TAN?

No, PAN should never be quoted in the field where TAN is required to be quoted. The purposes for which PAN and TAN are allotted are different. 

Can one apply for TAN without a PAN?

No. PAN is a mandatory prerequisite for obtaining TAN. In the case of non-residents, Form 49AA and other supporting documentation must be submitted to first obtain PAN, and then TAN

Yes, as long as the TAN corresponds to the same PAN and jurisdiction. However, if the business has independent operations in multiple states, separate TANs may be advisable for ease of compliance and accounting.

*Fee refers to government or official portal charges.