Free Consultation by Expert
Many thanks to Setbharatbiz. We had an excellent experience working with its expert. They have a strong sense of professionalism when dealing with clients.
Mudassir CEO, Twinfinty DigiTech SolutionsWe would recommend Setbharatbiz incorporation services to any founder without a second doubt. The process was beyond efficient and shows Setbharatbiz founder's vision
Nagasrinivas Director,Prakash Nagasrinivas & Saradhy AssociatesI was searching for a company for assistance in the incorporation services. Then one of my friend tell me about Setbharatbiz and definitely the Setbharatbiz is the best.
Prakash Kakani Director, PNS EV HubOverview
TAN Applications
A Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric number issued by the Income Tax Department of India. TAN is mandatory for entities responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961. The number must be quoted on all TDS/TCS-related documents, including challans, certificates, and returns. Applications for TAN include new registrations, corrections to existing details, and reissuance in case of loss or damage.
Why TAN is Important
1. Mandatory for TDS/TCS: Necessary for deductors and collectors to deposit taxes and file returns.
2. Legal Compliance: Ensures adherence to tax regulations, avoiding penalties.
3. Tax Credit Validation: Helps in proper credit allocation to deductees and collectors.
4. Avoids Rejections: Filing without TAN leads to non-acceptance of returns and payments.
5. Business Credibility: Demonstrates compliance with tax laws, enhancing reputation.
Documents Required
TAN applications generally do not require submission of documents. However, the following details must be provided
For Indian Citizens
Features
TAN Applications
Online and Offline Applications
Mandatory for TDS/TCS Returns
Branch-Specific Allocation
Linked with PAN
TAN Applications
Secure Processing
Revisable Details
Permanent Number
E-Filing Integration
Penalty Avoidance
Comparison of TAN Application
| Feature | TAN (New) | PAN | GST Registration |
|---|---|---|---|
| Purpose | TDS/TCS compliance | Taxpayer identification | GST compliance |
| Mandatory For | Deductors/Collectors | All taxpayers | Businesses with turnover above ₹20 lakhs |
| Validity | Permanent | Permanent | Renewable annually |
| Application Process | Form 49B | Form 49A/49AA | GST portal |
| Penalty for Non-Compliance | ₹10,000 (Section 272BB) | ₹10,000 (Income Tax Act) | ₹10,000 + interest |
Frequently Asked Questions
Is TAN mandatory for individuals?
TAN is not required for individual taxpayers unless they are responsible for deducting or collecting TDS/TCS.
Can a business have multiple TANs?
Yes, separate TANs can be obtained for different branches or business verticals.
How can I track my TAN application status?
Use the acknowledgment number on the NSDL portal to check the status.
What happens if I use an incorrect TAN?
Incorrect TAN can lead to rejection of TDS/TCS returns and penalties.
Can TAN details be updated?
Yes, you can apply for corrections via the TAN Correction Application process.
What is the penalty for not having a TAN?
A fine of ₹10,000 can be imposed for failure to obtain or quote TAN on required documents.