TAN Number Apply Online in India: Complete Guide to TAN Registration, Documents, Fees & Process

Businesses and organisations required to deduct or collect tax at source must obtain a TAN number. The TAN number is used when depositing TDS/TCS, filing TDS returns, and completing other tax-related compliance requirements.

In this blog, we will explain how to apply for a TAN number online, eligibility, required documents, application fees, and the complete TAN registration process.

What Is a TAN Number?

TAN (Tax Deduction and Collection Account Number) is a unique identification number issued by the Income Tax Department to individuals and entities responsible for deducting or collecting tax at source.

A TAN number consists of 10 alphanumeric characters. It is generally structured as follows:

• First four characters: Alphabetical characters.

• Fifth character: Represents the initial of the TAN holder's name.

• Next four characters: Numerical digits.

• Last character: Alphabetical character.

TAN is required for TDS and TCS-related activities under the Income Tax Act.

Who Needs to Apply for a TAN Number?

Any person or organisation responsible for deducting or collecting tax at source, where TAN is required under applicable tax provisions, must apply for TAN registration.

The following entities may need to apply for a TAN number:

1. Private Limited Companies

2. Limited Liability Partnerships (LLPs)

3. Partnership Firms

4. Proprietorship Businesses

5. Trusts and Societies

6. Government Departments

7. Banks and Financial Institutions

8. Educational Institutions

9. Other organisations deducting TDS or collecting TCS

Note: A TAN is not required for every business. It is generally mandatory for persons responsible for TDS/TCS deduction or collection, subject to applicable exceptions.

Benefits of TAN Number Registration

Applying for a TAN number helps businesses manage their tax deduction and collection responsibilities.

Some important benefits include:

• TDS Compliance: Helps businesses comply with applicable TDS provisions.

• TDS Return Filing: Required for filing TDS returns in applicable cases.

• Tax Deposit: Used for depositing TDS and TCS with the government.

• Business Compliance: Supports proper tax-related documentation.

• Financial Records: Helps maintain organised tax deduction records.

• Legal Compliance: Helps meet applicable requirements under income tax laws.

Documents Required for TAN Number Apply

The TAN application process requires basic applicant and organisation details.

Generally, the following information may be required:

• Applicant's name

• Applicant's address

• Email ID

• Mobile number

• PAN details

• Applicant category

• Details of the deductor or collector

• Authorised person's details, wherever applicable

The exact information required may depend on the applicant category and application method.

How to Apply for a TAN Number Online in India?

You can apply for a TAN number online through the authorised TAN application service.

Follow these steps:

Step 1: Visit the TAN Application Portal

Visit the official Protean (formerly NSDL) website or the authorised TAN application portal.

Step 2: Select TAN Application

Choose the option for a new TAN application using Form 49B.

Step 3: Fill in Applicant Details

Enter the applicant's name, address, contact details, category, and other required information.

Step 4: Verify Application Details

Carefully check all the information entered in the application form before submission.

Step 5: Pay the Application Fee

Pay the applicable TAN application fee through the available payment methods.

Step 6: Submit the Application

Submit the completed application and save the acknowledgement number for future reference.

Step 7: Receive TAN Number

After successful processing and approval, the TAN number is allotted to the applicant.

TAN Number Application Fees

The TAN application fee is payable at the time of submitting the application.

The fee may vary depending on applicable taxes and government-authorised service charges. Check the latest fee on the official application portal before making payment.

Difference Between PAN and TAN Number

PAN and TAN are two different identification numbers used for income tax purposes.

How to Check TAN Number Status?

After submitting your TAN application, you can check its status online.

Follow these steps:

1. Visit the official TAN application website.

2. Select the TAN application status option.

3. Enter your acknowledgement number.

4. Submit the required details.

5. Check the current status of your application.

You can also use the Income Tax Department's official services to verify TAN-related information.

What Is the Difference Between TAN and TDS?

TAN and TDS are related to income tax compliance, but they have different meanings.

• TAN: A unique identification number required for applicable TDS/TCS activities.

• TDS: Tax Deducted at Source, where tax is deducted from specified payments according to applicable income tax provisions.

For example, when a company makes certain payments such as salary, professional fees, or contractor payments, it may be required to deduct TDS under the applicable provisions.

The company uses its TAN for depositing the deducted tax and filing relevant TDS returns.

Is TAN Mandatory for Private Limited Companies?

TAN is not automatically mandatory for every private limited company merely because it is incorporated.

However, if a private limited company is required to deduct or collect tax at source under applicable provisions, it must obtain TAN, subject to relevant exceptions.

A company should check its TDS/TCS obligations before applying.

Frequently Asked Questions (FAQs)

1. What is a TAN number?

TAN stands for Tax Deduction and Collection Account Number. It is a unique 10-character alphanumeric number issued by the Income Tax Department.

2. How can I apply for a TAN number online?

You can apply for a TAN number online by filling out Form 49B through the authorised TAN application portal, submitting the required details, and paying the applicable fee.

3. Which form is required for TAN registration?

Form 49B is used for applying for a new TAN number.

4. Is PAN mandatory for TAN application?

PAN details may be required depending on the applicant and application requirements. TAN and PAN serve different purposes.

5. How many days does it take to get a TAN number?

The processing time depends on application verification and processing by the concerned authority.

6. Can I apply for TAN without a company?

Yes. Eligible individuals, firms, trusts, and other entities responsible for TDS/TCS can apply for TAN.

7. Is TAN required for GST registration?

No. TAN and GSTIN are different identification numbers. GST registration does not automatically require a TAN.

8. Can I use one TAN for multiple branches?

Generally, a deductor can use the same TAN for multiple branches under the same deductor entity, subject to applicable requirements.

Conclusion

Applying for a TAN number is an important compliance requirement for businesses and organisations responsible for deducting or collecting tax at source. The online TAN application process through Form 49B makes it easier to submit the required details and obtain a unique identification number.

Before applying, ensure that the applicant details are correct and the appropriate category is selected. Obtaining TAN helps businesses manage TDS deposits, returns, and other applicable tax compliance requirements.