TAN Registration:Online Process,Documents Required

Updated on July 06, 2024 11:46:18 PM

According to the section 203A of Income Tax Act 1961,every person who is liable to collect or deduct tax at source on behalf of government must apply for TAN Registration. TAN Registration can be done online or offline which we will discuss later. Tax Deduction Account Number or Tax Collection Account Number is a 10 digits specified number issued by the Income Tax Department consists of both alphabets and numbers which tells the TAN jurisdiction code, category of TAN number holder i.e whether it is an individual,an Organisation or any other Entity.

TAN Number Sample Document

  • TAN Certificate
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What is TAN?

TAN stands for Tax deduction Account Number or Tax collection Account Number issued by Income Tax Department.It is 10 digit alpha numeric number.

Every Assessee liable to deduct TDS is required to apply for TAN and shall quote this number in all TDS Returns, TDS payments and any other communications regarding TDS with Income Tax Department.

It is compulsory to quote TAN in TDS / TCS return (including any e-TDS / TCS return), any TDS / TCS payment challan and TDS/TCS certificates.

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Understand the Structure of TAN Number

  1. The first three alphabetical characters of TAN number is a code which signifies the jurisdiction area or the state.
  2. The fourth character represents the first character of the name of an individual or it can be a Company,Trust etc.
  3. Next five characters represents the unique code of the person based on its sequence of number.
  4. The final character is system generated which is a check number.

NOTE:Any entity whether an individual, Company, Trusts, Partnership Firms etc can only hold one TAN number.

Structure of TAN Number
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Benefits of TAN Registration

Benefits of TAN Number

Smooth Business Operations

TAN number smoothens the working of an entity or an individual by complying with the laws of TAN regulations, legal transactions, timely tax payments etc.

No need to renew

The most important benefit for the TAN holders is that it doesn’t need to be renewed again monthly,quarterly or yearly as it is a one time process.

Legal Compliance

TAN Registration ensures compliance with the provisions of the Income Tax Act, as it is mandatory for entities responsible for deducting or collecting taxes at source. After obtaining TAN, individuals or entities fulfill their legal obligations and avoid any potential penalties or consequences for non-compliance.

Collecting and Deducting Tax at Source

TAN Registration also complies the holders to collect and deduct tax at source and remit them legally in the eyes of law.

TDS/TCS Returns

There is no requirement of minimum paid-up capital for the Section 8 Company registration.

Helps in enhancing credibility

After obtaining TAX number, holders credibility increases in the eyes of their customers.

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Process to Apply for TAN Registration

Following is the process to apply for Online TAN Registration:

  • Go to the NSDL official website at TAN apply online.
  • Select the 49B form and choose the appropriate category,It could be for an individual, a Company, a Trust, a Government organization, or any other applicable category and download the form.
  • Fill in the TAN application form with accurate information. Provide details such as the applicant's name, address, contact information, date of birth/incorporation, and other relevant particulars and prepare a DD or challan.
  • Verify the form before submitting it and pay required fees on payment window.
  • An acknowledgement receipt will appear which consists of a 14 digit number save and sign it for future reference as it is your key to obtain TAN number.
  • Mail the acknowledgement receipt to NSDL for further process.
  • NSDL will verify the application and process it. Upon successful verification, the TAN will be allotted, and the TAN certificate will be sent to the applicant's address as mentioned in the application form.

NOTE:Get Professionals consultancy for a smooth registration process at Professional Utilities.

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Required documents for TAN Registration

When applying for TAN Registration there are certain documents that are needed as per Section 114(4) of Income Tax Rules,1962 at the time of application which are further discuss as follows:

Identity Proof/Address Proof

Documents such as aadhar card,PAN card,Passport are required for the identity proof and same can be for the address proof including electricity bill of an individual or company or registration certificates.

Date of Birth/Incorporation Proof

Birth certificate, Transfer certificate or even aadhar card can be used as a proof of DOB in cse of an individual. However, in case of a Company it may require a copy of certificate of incorporation, memorandum of association, articles of association or any other document depend on the type of entity.

Passport-sized Photographs

Recent passport-sized photographs of the applicants should be submitted along with the application form.


NOTE:If any minor wants to apply then the documents of his/her parents above mentioned documents work as the proof of identity and address of applicant.

Documents of TAN Number
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Frequently Asked Questions (FAQs)

Who must apply for TAN Registration ?

TAN Registration is mandatory for the Individuals, Business entities, Trusts, LLP’s etc who are liable to deduct or collect taxes.

At what rate should TAX be deducted at source?

Tax deduction at source happens at different rates based on the transaction. TDS rate for salary is determined based on the employees’ salary and tax payable by the employee.

The tax rate varies depending on the type of transaction. A rate of 10% is applicable for deducting TDS on rent of land, building or furniture if rent for entire year exceeds Rs 1,80,000. See a complete list of TDS rate.

What are the due dates of filing TDS Returns?

15th of every July, October, January, and May are the due dates for filing quarterly TDS return. Any delay in furnishing your return will result in a penalty of Rs 200 per day not exceeding the total amount of TDS for the quarter.

What is the penalty for not obtaining tax registration?

If tax registration is not obtained then a penalty Rs 5000 Rs 200 a day, whichever is higher may be attracted.

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