Know Your TAN- A Comprehensive Guide for Taxpayers
Updated: May 29
Every Indian taxpayer has to know their TAN. It is a 10-digit alphanumeric identity number that is issued to those who, either individually or as an entity, are in charge of collecting or withholding taxes at the source. To ensure seamless everyday operations, all Indian individuals and businesses must obtain a TAN number. When submitting payment challans and certificates, Annual Information Returns, TDS, TCS, and other forms, you have to include this number. Your submitted returns won't be accepted by the TIN (Taxpayer Identification Number) facilitation facilities until you supply the TAN number. Furthermore, without a TAN number, your bank would not receive TDS or TCS challans. In this guide, we will provide a comprehensive overview of TAN for taxpayers.
Table of Content
What is TAN?
Tax Deduction or Collection Account Number is referred to as TAN. The Income Tax Department provided the 10-digit alphanumeric number. TAN is available to everyone who collects or deducts tax at source (TCS and TDS). A TAN number, such as PDES03028F, is made up of four alphabets, five numbers, and one alphabet. It is structured as follows:
The city where TAN has been assigned is represented by the first three alphabets of TAN
The first letter of a person's name is represented by the fourth character of TAN
The last alphabet and all five of the numbers are automatically created characters by the algorithm.
Your TAN number is a requirement under Section 203A of the Income Tax Act of 1961 for all TDS returns. According to Indian law, TAN is necessary for tax compliance processes. All TDS and TCS forms, challans, payments, and certificates must include the TAN number. It is utilised for deductions such as salary, dividends, or interest. If this isn't done, there would be a steep penalty of Rs. 10,000.
How to Apply for TAN?
Businesses have the option to apply for their TAN number offline and online. We will explain the steps in detail.
TAN Application Offline
Step 1: Get Form 49B by going to the closest TIN Facilitation Centre. It can also be available for download on the Income Tax website. Form INC-7 must be completed if your company is not registered under the Companies Act.
Step 2: Complete the form and bring it to the TIN counter with the processing fee. You can pay via cash, cheque or debit card.
TAN Application Online
Step 1: Visit NSDL TAN's official website and log in.
Step 2: Select "Online TAN Application (Form 49B)".
Step 3: Click on the category of deductors after selecting the "Apply for new TAN" option.
Step 4: The TAN application will become available. Make sure you complete all required fields on the form by using the * symbol. Any data you enter that does not match the requirements for format checking will appear as an error on the screen.
Step 5: If there are no problems on your form, a confirmation box will appear. To change any data, select the edit option on this confirmation screen.
Step 6: Click "Confirm" once you've carefully reviewed all the information.
Step 7: Complete the online fee payment. Payments may also be made by credit/debit card, cheque, or direct deposit in favour of NSDL-TIN.
Step 8: Following a successful payment transaction, you will get an acknowledgement slip. You can check the status of your application by using the 14-digit acknowledgement number. This acknowledgement slip should be printed, saved, and sent to Protean eGov Technologies Ltd. along with the other necessary paperwork. The address is as follows:
Protean eGov Technologies Ltd,
4th floor, Sapphire Chambers,
Baner Road, Baner, Pune – 411015
How to Download Your TAN Certificate?
The procedures to download your TAN certificate online are as follows:
Step 1: To download your TAN certificate online, go to the NSDL TIN.
Step 2: Choose TAN-New/Change Request under "Application Type."
Step 3: Enter the "Acknowledgment Number" you were given when submitting your TAN application.
Step 4: Click "Submit" after entering the captcha code.
Step 5: This website will show you your TAN status.
Step 6: A message stating, "Click here to download your TAN Allotment Letter" can be found. To download your TAN certificate, you can also click on that.
How to Know Your TAN?
A TAN and a PAN are not the same physical form. As a result, the sole documentation accepted for TAN is an allotment letter. As a result, it is not always practical for someone to have it on hand, and our computers do not have the memory to store such complex numbers. You can therefore find a TAN number from anywhere at any time, provided you have a secure internet connection. To check your TAN number online, just follow these easy instructions.
Step 1: Go to the Income Tax Electronic File Portal. Select "Know Your TAN" from the Quick Links section on the left.
Step 2: Following your click, you will be taken to the screen seen below. Enter the necessary information here:
Category of Deductor: Choose the appropriate category from the drop-down box.
TAN Search: Choose either TAN/Name.
State: From the drop-down menu, choose the state.
TAN/Name: Depending on the option you select above, enter the TAN or Name. (If you choose to search Name using TAN-based, type TAN; if you choose to search Name-based, type the name.)
Mobile No.: Type your mobile number here.
Step 3: Click "Continue" once the fields have been filled out.
Step 4: Your mobile number will receive an OTP when you click the "Continue" button above. After entering the OTP in the box, select "Validate."
Step 5: The TAN data will appear on the screen in the same format as it does below after you have validated the OTP.
Step 6: Although you now have a fundamental understanding of TAN, there are many additional factors to consider in this context.
Conclusion
The Tax deduction/collection account number (TAN) can be used to identify the TAN deduction/collection account. It is necessary for those in charge of tax deductions or collection on payments to be aware of their tax deduction/collection account number (TAN). With the aid of the firm name or TAN, an individual can use the Income Tax Department's "Know Your TAN" online tool to verify the TAN details.
FAQ
Q1. Where do I need to quote the TAN Number?
The following documents require TAN to be quoted by law:
Tax Deducted at Source (TDS) return
Tax Collection at Source (TCS) returns
TDS/TCS payment challans
Financial Transactions or Reportable Accounts Statement
TDS/TCS certifications
Q2. Which authority will allot TAN?
The agency that distributes TAN is the Income Tax Department. All subsequent TDS/TCS-related documents should contain the TAN on them after it has been assigned.
Q3. Are TAN and PAN the same?
No, they are entirely distinct from one another and have different functions. Taxpayers are given a 10-digit identity number called PAN, but only tax deductors are given TAN.
Q4. How can I know my TAN allotment date?
A TAN allotment letter obtained from the income tax department or a question from the department's customer service might inform applicants of their TAN allotment date.
Q5. How to track the status of your TAN application?
You can contact the TAN call centre at 020-27218080, send an SMS with the code "NSDLTAN" to 57575, or use a 14-digit acknowledgement number and online status tracker to monitor the progress of your TAN application.
Q6. What is a duplicate TAN?
A duplicate TAN is obtained when someone has one that is now valid and receives another. If an organisation has more than one TAN, it is prohibited, unless they are distinct branches or divisions.
Q7. Can we find TAN from the PAN number?
Visit the Income Tax Department's official website to find out your TAN number from PAN. After selecting the 'Services' page, click the 'Know Your PAN' option. Next, pick the TAN option after logging in with your User ID and password.
Q8. What are the penalties for failing to apply for TAN or quoting false TAN in TDS returns?
According to the income tax statute, there are penalties for both specifying the wrong TAN and failing to apply for TAN when required. The Rs. 10,000 fine is non-negotiable.
Q9. What happens if someone deducts TDS without a TAN?
TAN is required in every TDS instance. In any correspondence from the Income Tax department, TAN must be cited. If they don't have a TAN, they will have to pay a 10,000 rupee fine. Furthermore, if TAN is absent, banks will not get any TDS returns or payments.
Q10. Do I also need to have a TAN if I have a PAN or can I just quote my PAN?
You cannot use PAN and TAN interchangeably. They both have distinct functions. While TAN is intended for individuals who are in charge of deducting tax at source (TDS) or collecting tax at source (TCS) on behalf of the IT department, PAN serves as the individual's tax identification number, contains all pertinent financial data, and is necessary for various financial activities like opening a bank account and investing in financial instruments.
Q11. What happens if my employer does not have a TAN?
If the employer does not get and/or quote TAN, they will be subject to a penalty under the applicable part of the Income Tax Act, 1961. Furthermore, neither the employer nor the employee will be able to file a TDS statement or deposit TDS, if it has been deducted. If your employer has not withheld TDS from your paycheck and your salary is in a taxable band, you may be required to pay advance tax and/or self-assessment tax.
Q12. Can I have more than one TAN?
For a single category, a deductor may only have one tax deduction/collection account number. It is forbidden to have more than one TAN.
Q13. Is separate TAN required for TDS and TCS?
No, you can use a single TAN both for TDS and TCS.
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