TAN Registration


TAN Registration

In India, a Tax Deduction and Collection Account Number (TAN) is basically a 10 digit alpha-numeric number issued to those users who are required to deduct and collect tax on payments made by them under the Indian Income Tax Act, 1961.

It is required for those people who are responsible for Tax Deduction at Source (TDS)/Tax Collection at Source (TCS) on behalf of the government is applied through “Form No. 49B”. TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment Callahan and all TDS/TCS certificates to be issued.

When the central government receives the TAN application along with documents, the details are verified and then sent to the Income Tax Department. Once approved, the Department allocates a unique number and notified the applicant through the Central government

Documents required for TAN Registration (In case of Sole proprietorship):-
  1. Address proof(Like-Driving Licenses/Voter-ID/Aadhar Card)
  2. PAN card

Documents required for TAN Registration (In case of Partnership):-
  1. Partnership deed
  2. Address proof(Like-Driving Licenses/Voter-ID/Aadhar Card)

Documents required for TAN registration (In case of Company):-
  1. Certificate of incorporation of the company
  2. MOA of company
  3. Address proof of each Director(Like-Driving Licenses/Voter-ID/Aadhar Card)
1. Is required to obtain TAN number of individual ?

Individuals who are salaried are not required to obtain TAN number.

2. Who is eligible to obtain TAN number ?

A proprietorship/other entities (Like-Private Ltd Company, LLP)are required to deduct tax at source while making certain payments like Salary,Payments to contractor or sub-contractors,payment of rent etc.

3. What is the structure of TAN Number ?

TAN structure is as follows: BIHA88888A: First four characters are letters, next five are numerals, last letter is letter. The first three characters represent the city or state where the TAN was issued.

4. Is there any penalty if failed obtain or quote TAN ?

Yes, failures to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs.10,000/-.

5. Is it necessary to obtain and quotes TAN ?

YES, every one liable to deduct tax at source/collect tax at sources is required to obtain TAN.


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