TAN Registration

TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government's collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government - quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax.

To obtain TAN, application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN will be allotted to the entity and the entity must quote the TAN in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates. Itaxbuddy can help you obtain your TAN registration quickly and hassle-fee. Itaxbuddy is an authorized TAN Facilitation Center.

TAN Registration

TAN Registration

Itaxbuddy.com can help your business obtian TAN Registration in 7 to 12 days, subject to Government processing time.

Application Preparation

An Itaxbuddy Tax Expert will prepare your TAN Application and obtain your signature in the format along with the necessary supporting documents.

Application Processing

Once the application is prepared, Itaxbuddy will submit the TAN Application to the Tax Department. Itaxbuddy is a TAN Facilitiation Center.

TAN Allotment

Once the application and the attached supporting documents are verified, the Tax Department will allot a TAN Number for your business.

Frequently Ask Questions (FAQs)

  • What is TAN?Open or Close

    TAN is Tax Deduction and Collection Number. TAN is used by the Income Tax Department to track all payments and filings of persons or entities required to deduct tax at source and pay it to the Government. TAN is a 10 digit alpha numeric number.

  • Why is TAN required?Open or Close

    It is mandatory for business entities and other type of entities to deduct tax at the source, i.e., while paying rent, salary, etc., and pay the same to the Government. To track these payments, TDS Certificates and TDS Filings, the Government mandates TAN registration for all entities required to deduct tax at source. TDS ensures the responsibility for payment of tax is diversified and the Government receives tax sooner.

  • Who must obtain TAN?Open or Close

    Individuals who are salaried are not required to deduct tax at source. However, Individuals who run a proprietorship business are required to deduct tax at source. All other entities like LLP, Private Limited Company, Limited Company, Trust, Society, etc., are required to obtain TAN and deduct tax at source. Not obtaining TAN when applicable, attracts a penalty of Rs.10,000.

  • What documents are required for obtaining TAN?Open or Close

    To obtain TAN, application must be made in Form 49B at any of the authorized TAN Facilitation Center. Itaxbuddy is an authorized TAN Facilitation Center.

  • Can I use a PAN instead of TAN?Open or Close

    No, PAN cannot be quoted where TAN is required. PAN and TAN serve two different purposes. Therefore, it is mandatory for those deducting tax at source to obtain a TAN.

  • At what rate should tax be deducted at source?Open or Close

    Tax deduction at source happens at different rate based on the transaction. TDS for salary is determined based on the employees' salary and tax payable by the employee. TDS rate of 10% is adopted for rent of land, building or furniture if the annual rent exceeds Rs.1,80,000/-. For a complete list of TDS, click here.

  • How long does it take to obtain a TAN?Open or Close

    TAN Registration can be obtained in 5-10 working days from date of application along with the required documents.

  • Can an entity have two or more TAN?Open or Close

    Any entity cannot have two or more TAN. It is illegal for an entity to possess more than one TAN.

  • When and where should the tax deducted at source be deposited?Open or Close

    Tax Deducted at Source (TDS) must be deposited through banks using Challan 281 quoting the TAN number of the entity. The deadline for payment of TDS is the 7th day of each month.

  • When should I file TDS Returns?Open or Close

    TDS Return should be filed quarterly on the 15th day of July, October, January and May. The TDS return filed on these months will correspond to the transaction of the preceding three months. Delay in furnishing eTDS statement will result in a mandatory penalty of Rs.200 per day, with the total fees not exceeding the total amount of TDS made for the quarter.