What is Tax Account Number (TAN)?

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By Hiral Vakil on March 9, 2019

TAN is the short form for Tax Deduction and Collection Account Number. It is a 10 digit alphanumeric number, issued to persons who are required to deduct or collect tax on payments made by them. TAN is to be obtained by all persons who are responsible for deducting Tax at source (TDS) or who are required to collect tax at source (TCS).

Who needs TAN?

Every person who deducts or collects Tax at source has to apply for the allotment of TAN. Since TAN is mandatory to file following documents with the Income Tax Department:

  • ​TDS statements i.e. Return
  • ​TCS statements i.e. Return
  • Annual Information Return
  • Challans for payment of TDS/TCS
  • TDS/TCS certificates
  • Other documents as may be prescribed

As prescribed above, if a person fails to obtain a TAN or fails to quote a TAN, penalty of Rs. 10,000 will be imposed.

Understand TAN Number

TAN is 10 digit alphanumeric number. TAN number in further details below

  • First 4 digits of TAN are alphabets, the next 5 digits of TAN are numeric and last digit is an alphabet.
  • First 3 alphabets of TAN represent the jurisdiction code, 4th alphabet is the initial of the name of the TAN holder who can be a company, firm, individual, etc. For example, TAN allotted to Mr. Atul of Ahmedabad may appear as under:
TAN number Structure

The combination of all the above items give TAN it’s unique identity.

How to apply for TAN?

You can apply for TAN using Form 49B. There are two modes for form submission:

  1. Submit to nearest TIN Facilitation Center
  2. Apply via TIN-NSDL Website

How to apply for TAN via TIN-FC?

An application for allotment of TAN is to be filed in Form 49B and submitted to any TIN-FC. Addresses of TIN-FCs are available at NSDL-TIN website (https://www.tin-nsdl.com). You can download the Form 49B from NSDL-TIN website and from the Income-tax Department website (http://www.incometaxindia.gov.in/home.asp#)

How to apply for TAN online?

You can also apply for TAN online from the TIN-NSDL website. Step by step guide for online TAN application

  1. An applicant will have to fill Form 49B online and submit the form. Submit Form 49B here. Once the form is submitted, an acknowledgment screen will be displayed. The acknowledgment consists of…
    • A unique 14-digit acknowledgment number
    • Status of applicant
    • Name of applicant
    • Contact details (Address, e-mail and Telephone number)
    • Payment details
    • Space for Signature
  2. Applicant has to save the Acknowledgment and should obtain a print of the same.
  3. The applicant should sign the Acknowledgment. Signature should only be within the box provided in the acknowledgement.
  4. In case of applicants other than individual, the authorised signatory shall sign the acknowledgement and affix the appropriate seal or stamp.
  5. Thumb impression, if used, should be attested by Magistrate/Notary Public/Gazetted Officer under his official seal and stamp.

Documents required for TAN

Digital Signature Certificate (DSC) is required to apply for TAN. However you must sign and post Acknowledgement to

  1. Digital Signature Certificate (DSC) is required to apply for TAN.
  2. PAN of applicant
  3. Incorporation certificate of companies
  4. The Acknowledgement must be duly signed and sent to NSDL at: NSDL e-Governance Infrastructure Limited,5th floor, Mantri Sterling,Plot No. 341, Survey No. 997/8,Model Colony,Near Deep Bungalow Chowk,Pune – 411016
  5. Superscribe the envelope with ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’).
  6. Your Acknowledgment and demand draft, if any, should reach NSDL within 15 days from the date of online application.
  7. Application will be processed only on receipt of duly signed Acknowledgment and realisation of payment.

FAQs:

1. How to check TAN application status?

You can track your TAN application status on either www.incometaxindia.gov.in or https://www.tin-nsdl.com by clicking on Track your PAN/TAN Application Status

2. Can I have more than one TAN?

No, you can not have more than one TAN. If a duplicate TAN is allotted, you must surrender the duplicate TAN.

3. How long does it take to get TAN?

If you submit Form 49B without digital signature, you must send signed copy of Acknowledgement to TIN NSDL. TIN-NSDL will only process your TAN once they receive signed acknowledgement. It should take 1 to 2 weeks to receive your TAN post that.