TAN Registration: Apply Online, Fees & Status Explained

What is TAN Registration Number?

A company or individual that needs to deduct taxes at source (TDS) at the time of making specific payouts such as rent, salaries, payments to contractors, sub-contractors, etc. requires a TAN number. This is a unique 10 digit alphanumeric code that would thereon be needed every time a claim on TDS was being made. For this, one should apply for a TAN card which is issued by the NSDL on behalf of the Income Tax Department. This TAN card can be authenticated and verified easily on the official Indian government portal for TAN registration.

Who Can Apply for TAN Registration

The following mentioned individuals or entities would need to apply for TAN registration:

• Non-profit organisations which need to make specific payouts above the stated threshold limit
• Business branches which are making specific payments above the stated threshold limit
• Any individual or entity which is needed to deduct tax at source when making payments such as salaries, to contractors, pay rent which exceeds Rs. 180,000 annually can apply for TAN registration.

Importance of Securing a TAN Number

Under Section 203A of the Income Tax Act, obtaining a TAN number is mandatory for any individual or entity responsible for Tax Deducted at Source (TDS) or Tax Collected at Source (TCS). This unique identifier must appear on TDS/TCS returns, payment challans, and certificates to ensure compliance with tax regulations. 

Different Types of TAN Applications

Typically, there are two kinds of TAN applications, which are mentioned under here;

• Application for the issuing of a new TAN
• Form for correction or amendment in TAN data for the already allotted TAN.

Read More – Difference Between TIN, TAN, VAT, PAN, DSC, and DIN?

Salient Features of TAN Registration

The following mentioned are the salient features of TAN registration;

1. TAN Status

This is a tax deduction account number known as the PAN. It is a 10 digit alpha-numeric code that the Income tax department issues to all the people that are responsible for collecting or deducting tax at source itself. This holds accountable for all profit as well as non-profit entities.

2. Sole Proprietorship

People who are salaried do not need to have any tax deducted at source but those that are running a proprietorship will need to obtain the tax collection number and have tax deducted at source wherever applicable.

3. Tax Deducted at Source (TDS) Payments

Tax deducted at source (TDS) needs to be paid into an official bank account. At this time, the Tax collection number needs to be quoted along with the use of Challan 28. Typically, the TDS of the preceding month needs to be paid on the 7th day of the following month.

4. TAN Facility Centres

There are several TAN facilitation centres that are run by expert teams to help obtain the tax collection number with least amount of hassle and paperwork. The moment the TAN application along with required documents has been submitted, this process is quick and efficient.

5. Swift Processing

The tax collection number can be obtained as quickly as one week from the time of the submission of the application and documents. This application needs to be submitted in a hard copy along with due identification proof papers and a self-attested copy of the address proof.

6. Validity Period

The generation of the TAN is a one-time process and is valid for a lifetime. This avoids hassles of revalidation and expiry. However, in case you surrender the same for some reason, you will need to re-apply.

Benefits of TAN Registration

There are several benefits of applying for a TAN such as;

• When one files their TDS returns using TAN, the address and PIN code of the deductee gets auto-populated as per the instructions of the Income Tax department which offers complete transparency in taxation cases.
• When TDS is filed using TAN, the status of booking gets documented which helps the deductor to track whether his or her return matches with the TDS statement that has been filed by him.
• The various branches of several enterprises can make a TAN application separately for different TANs’ for that particular division or branch.
• In addition to filing for TDS returns, TAN can also be used for creating payment challans and invoices of TDS/TCS certificates.

How to Create an Account for TAN Registration

The TAN registration process to create an account online can be done quite simply following the steps mentioned below;

Alternately, you can choose to speak with a customer care executive of one of the many companies that offer this service and get it done via them privately.

For manual registration, individuals need to fill out Form 49B, the TAN allotment letter form, and submit it to any TIN-Facilitation Center (TIN-FC) or Protean along with the required fees. Those preferring a hybrid method can retrieve the TAN application form online, fill it out, and submit it physically at the TIN-FC. 

How to Apply TAN Number?

Applying for a TAN can be done either by contacting one of the many facilitation centres or directly online by self. The steps to follow when applying for a new TAN are:

1. Firstly, visit – https://www.tin-nsdl.com/services/tan/tan-introduction.html

2. Click on ‘TAN’ under the ‘services’ button

3. Click ‘Apply Online’ tab – https://tin.tin.nsdl.com/tan/form49B.html

4. Then select ‘New TAN’

5. A new page will pop up from which you can select ‘category of deductors’

6. After this, you will be directed to Form 49B

7. The form that will pop up will need to be fully filled and then click on ‘submit’

8. Once you confirm details, a screen of acknowledgement will have a drop down list that will have the following options:

• Acknowledgement number (this will be a 14 digit code)
• Applicant’s status
• Applicant’s name
• Payment details
• Contact details
• Specified space for signature

9. Save this acknowledgement form and take a print out of the same

10. The printout along with the required documents will then need to be sent to NSDL

How to Track Status of TAN Application?

To track TAN application status, applicants can use the 14-digit unique acknowledgement number after three days of submitting their application. This can be done online through the TAN track status facility. Alternatively, applicants can do TAN tracking by contacting the TAN helpline number at 020-2721 8080 or reach out to TAN customer care for further assistance. 

How to Activate TAN User ID on the Income Tax Portal?

If your TAN login fails, you must first activate the TAN user ID. Here’s how you can do it:

1. Log in using your PAN credentials.
2. Navigate to the “Pending Actions” tab under the Worklist section. 
3. Select “Approval/Modification of TAN Deductor or Collector Registration” and approve the action. 
4. Once completed, you will receive a confirmation message with a transaction ID. This will enable you to log in and manage your TAN apply status.

TAN Application Required Documents to be submitted

The following mentioned documents need to be submitted along with the application for TAN:

• Proof of address of the registered office
• Passport-sized photo as per specifications
• PAN card of the enterprise
• TAN application form
• Identify proof of the company
• Legal documents such as MOA, AOA, partnership deed, etc.

All in all, TAN registration is both, necessary as well as beneficial in keeping track of tax deducted at source along with personnel details. The application process is both, quick and easy with several companies offering to do this for you. The online application is most preferred and commonly used but for those looking to apply for this offline, agencies, and customer care executives are readily available to help.

Payment for TAN Card Application

The new TAN application fees are Rs. 77.00 (Rs. 65 application charge + 18% GST). Payments can be made through various methods:

• Credit card/Debit card (Additional 2% fee plus taxes may apply).
• Net banking (Rs. 4.00 surcharge + GST).
• Demand drafts or cheques payable to “Protean- TIN” (mention the applicant’s name and acknowledgement number).

Applicants must deposit the cheques at any HDFC Bank branch nationwide (except Dahej) and mention “TAN Protean” on the deposit slip. 

Additional Features

• TAN Card Download: After approval, individuals can request their TAN card download or access a TAN copy download for their records. 
• Correction in TAN: If an error occurs, users can apply for corrections by using the Form 49B.
• TAN Letter Download: Applicants can retrieve their TAN allotment letter from the NSDL portal to validate their registration. 

Conclusion 

TAN registration ensures compliance with tax regulations, making it essential for entities involved in TDS or TCS transactions. Its streamlined process, lifetime validity, and benefits like auto-population of TDS details simplify tax management significantly. Whether app;oed online or offline, the process is efficient and accessible for individuals and businesses alike. Lendingkart empowers businesses by providing the financial solutions needed to maintain compliance and drive growth.

TAN Registration FAQs:

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