TAN Registration Online in India

TAN, or Tax Deduction and Collection Account Number, is a unique 10-digit alphanumeric code issued by the Income Tax Department of India. It is mandatory for any individual or entity responsible for deducting or collecting tax at source (TDS/TCS).

This number must be quoted in all TDS/TCS returns, payment challans, and deduction certificates. Without a valid TAN, businesses cannot legally deduct or collect taxes, and banks will not accept TDS deposits, making TAN registration essential for tax compliance in India.

The structure of TAN is systematic:

• The first three characters represent the jurisdiction code (i.e., location of issuance).
• The fourth character indicates the first letter of the deductor’s name or entity.

This format helps in the streamlined identification and monitoring of tax deduction and collection activities across different states and sectors.

TAN is issued once and remains valid for a lifetime, eliminating the need for periodic renewals. This simplifies long-term compliance for companies, firms, trusts, and even government departments.

Purpose of TAN

TAN (Tax Deduction and Collection Account Number) serves a critical function in India’s tax system by ensuring accurate tracking, reporting, and compliance with TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions. It acts as a unique identifier for entities deducting or collecting tax, helping the Income Tax Department monitor tax credits and reduce the risk of evasion.

As per Section 203A of the Income Tax Act, 1961, TAN is legally mandatory for all individuals and entities involved in TDS or TCS activities, including:

• Companies and LLPs
• Sole proprietors and partnership firms
• Trusts, NGOs, and cooperative societies
• Government departments and local authorities

TAN must be quoted on all TDS/TCS returns, challans, and certificates. Failure to comply can result in:

• A penalty of ₹10,000 for non-quotation
• Disallowance of expenses under the Income Tax Act
• Delays in TDS payments and filings

But beyond legal compliance, TAN registration offers several key advantages:

• Streamlines TDS/TCS Deductions: Ensures timely and accurate deposit of taxes with the government
• Simplifies Monitoring: All TDS/TCS transactions are linked to TAN, making tracking and reconciliation effortless
• Prevents Fraud: Helps verify the identity of the deductor/collector, minimizing misuse or false deductions
• Lifetime Validity: TAN is issued only once and remains valid for life, no renewals required
• Essential for Filing Returns: Mandatory for generating Form 16/16A, filing returns, and making TDS payments
• Avoids Penalties and Disruptions: Eliminates the risk of fines and ensures uninterrupted tax compliance

In short, TAN is more than just a number; it is a critical compliance tool that supports transparency, reduces administrative burdens, and ensures lawful tax practices in India.

What Happens if You Don't Have a TAN?

Failing to obtain a TAN or quoting an incorrect TAN leads to several serious consequences:

• Penalty of ₹10,000 under Section 272BB of the Income Tax Act for not obtaining or wrongly quoting TAN.
• Inability to deposit TDS or file mandatory TDS statements disrupts tax compliance.
• Form 16/16A certificates may not be generated, affecting employees or vendors.
• Deductees may be unable to claim tax credits in their income tax returns due to non-reporting by the deductor.
• Businesses may face disallowance of expenses, interest charges, and further penalties for non-filing or late filing of TDS returns.
• Persistent non-compliance can even lead to prosecution and higher penalties in severe cases.

These operational and financial setbacks highlight the importance of timely and accurate TAN compliance for all deductors and collectors.

The requirement to obtain a TAN varies by entity type and the nature of financial transactions. Here’s a breakdown of who must apply and under what conditions:

Note: TAN is required based on specific payment thresholds (e.g., for rent, contractual payments), not based on a general business turnover limit.

When PAN Can Be Used Instead of TAN (Sections 194IA, 194IB, 194M)

A significant simplification for individuals and Hindu Undivided Families (HUFs) is the provision allowing them to use their PAN instead of obtaining a TAN for TDS deductions under specific sections of the Income Tax Act. This exception provides considerable relief from the TAN compliance burden for common high-value transactions.

The sections where PAN can be used in place of TAN are:

• Section 194IA (TDS on Property Sale): This section mandates TDS deduction on the sale of immovable property (excluding agricultural land) where the sale consideration is ₹50 lakh or more. The buyer is responsible for deducting 1% TDS from the sale value or Stamp Duty Value. For this transaction, the buyer can quote their PAN instead of needing a TAN.
• Section 194IB (TDS on Rent): This applies to individuals or HUFs (who are not subject to a tax audit) paying monthly rent exceeding ₹50,000. The TDS rate is 2% (reduced from 5% effective October 1, 2024). The deductor can use their PAN for this purpose, eliminating the need for a TAN.
• Section 194M (TDS on Contractual/Professional Fees): This section covers individuals or HUFs (not subject to a tax audit) making payments for contractual work, commission (excluding insurance commission), or professional fees that exceed ₹50 lakhs in a financial year. The TDS rate is 5%. Similar to the other two sections, the deductor can quote their PAN instead of obtaining a TAN.

These exceptions are crucial for small business owners and individuals, as they simplify compliance for common transactions, potentially saving them the effort and cost of obtaining a TAN unnecessarily.

The online application process for TAN is facilitated by the NSDL (Protean) portal, offering a convenient method for obtaining this essential tax identifier.

Step 1: Visit the Official NSDL (Protean) Portal

The official portal for online TAN applications is the NSDL (National Securities Depository Limited) TIN website, now managed by Protean eGov Technologies Limited.

How to Navigate:

• Go to the NSDL TIN website: [tin.tin.nsdl.com/tan/index.html].
• On the homepage, look for the “Online Application for TAN (Form 49B)” link and click it.
• You’ll be directed to the application page.
• Select your "Category of Deductor" (e.g., Company, Individual/Sole Proprietorship, Firm, Trust, Government) from the dropdown menu.
• Click “Select” to proceed to the online form.

This takes you to the official, secure portal to start your application.

Step 2: Fill Form 49B Online

Applicants must fill in all mandatory fields in Form 49B accurately and completely. The form requires details such as the applicant's full name, complete address, contact information (including a valid phone number and email ID), and their Permanent Account Number (PAN).

Step 3: AO Code and How to Find It

Applicants are required to provide their Assessing Officer (AO) code in the TAN application. The AO code determines the specific tax jurisdiction under which the applicant falls and is made up of four components:

• Area Code
• AO Type
• Range Code
• AO Number

To find the correct AO code online, applicants can visit the NSDL TIN website (tin.tin.nsdl.com/tan/) and use its search tool. The search can be initiated by selecting the city where the applicant files or intends to file their TDS returns.

Step 4: Get and Submit the Acknowledgement Slip

• After successfully submitting Form 49B and completing the payment, you will receive an acknowledgment slip displaying a unique 14-digit acknowledgment number. This slip contains key details such as your name, status, contact information, payment specifics, and a designated space for your signature.
• Print and sign the acknowledgment slip. For non-individual applicants, the authorized signatory must sign.
• Unless you applied using a Digital Signature Certificate (DSC), you must send the signed acknowledgment slip to Protean eGov Technologies Limited (formerly NSDL) in Pune. The envelope should be clearly superscribed with “APPLICATION FOR TAN – Acknowledgment Number.”
• Ensure the signed acknowledgment and any demand draft (if payment was made offline) reach Protean’s Pune office within 15 days of the online application. Processing will only begin after receipt of the signed slip and payment realization.
• For DSC-based applications, this physical step is not required; the process is fully paperless.

Step 5: Apply for TAN with a Digital Signature Certificate (DSC)

A streamlined, fully paperless way to apply for TAN online is by using a Digital Signature Certificate (DSC). This method eliminates the need to send any physical documents, making the process faster and more convenient.

Prerequisites for DSC-based Application:

• You must have a valid Class 3 DSC
• The emSigner utility, required for digital signing, must be downloaded and installed on your computer.

How to Apply Using DSC:

• On the NSDL portal, select the DSC-based TAN application option.
• Fill out Form 49B online with all required details.
• Insert your DSC and digitally sign the application form.
• Submit the form and pay the application fee online (no offline payment for DSC applications).
• After successful submission, an acknowledgment receipt with a 14-digit number is generated for tracking your application.

Key Benefits:

• No need to print, sign, or send any documents to NSDL; everything is completed online.
• Ideal for businesses and professionals already using DSCs for other compliance needs.
• The process is typically quicker, as it avoids postal delays and manual verification steps.

Using a DSC for TAN application ensures a secure, efficient, and entirely digital experience.

For applicants who prefer a traditional approach, TAN registration can be completed offline by submitting a physical application.

Step 1: Download and fill out the Physical Form 49B

Applicants choosing the offline method can obtain Form 49B by downloading it from the NSDL website or the official Income Tax Department website. The form must be filled manually, using English and capital letters, ensuring all details are accurate and legible.

Step 2: Find Your Nearest TIN Facilitation Center (TIN-FC)

TIN Facilitation Centers (TIN-FCs) are authorized points for receiving TAN applications, serving as crucial touchpoints for the offline process. To locate the nearest TIN-FC, applicants can visit the Protean TIN-PAN website. On the website, use the 'Search TIN FC' option, providing their state and specific location.

Step 3: Submit the Form and Pay Fees at the Center

Once Form 49B is duly filled, submit it—preferably in duplicate—along with the applicable application fee at the nearest TIN Facilitation Center (TIN-FC). For offline submissions, payment is generally accepted via Demand Draft (DD) or in cash at the TIN-FC office.

Upon successful submission and payment, make sure to collect the acknowledgment receipt from the center staff.

This receipt serves as official proof of submission and is crucial for tracking the status of your TAN application later. It contains a unique 14-digit acknowledgment number that can be used on the NSDL portal to monitor processing progress.

The offline process requires fewer attached documents but involves physical presence and immediate payment. It may appeal to those who prefer direct, on-the-spot confirmation of their application.

When applying for a TAN, certain documents are generally required to verify identity, address, and the legitimacy of the applicant, regardless of whether it is an individual or a business entity. While you don't need to attach documents with the physical Form 49B, you should have them ready for verification. They are essential when applying with a DSC or if requested by authorities.

General Documents Required

• PAN Card: Mandatory for all types of applicants to link TAN with tax identity.
• Aadhaar Card: Required for identification and verification purposes.
• Address Proof: Can include Aadhaar card, passport, voter ID, utility bill, rental agreement, or bank statement, matching the application address.
• Proof of Date of Birth (for individuals): 10th marksheet, Aadhaar card, or any official document showing full date of birth.
• Passport-Sized Photographs: Typically, two recent photos (for individual applicants).
• Contact Information: A valid mobile number and email ID for communication and application status updates.

Note for Specific Business Structures

• Private Limited Companies must additionally provide the Certificate of Incorporation, MOA/AOA, company PAN, proof of registered office address, and identity proof of an authorized signatory (e.g., director’s PAN). A company stamp may also be required.
• Partnership Firms need to submit the notarized Partnership Deed, firm PAN, address proof, partner identity/address proofs, latest bank statement, and a stamp with ‘Partner’ designation.
• Hindu Undivided Families (HUFs) should include the HUF PAN, Karta’s PAN, and address proof, a HUF declaration, and proof of the HUF’s bank account (cancelled cheque or bank statement). The Karta's contact information will serve as the primary point of reference.

This consolidated checklist ensures all essential documents are prepared while addressing additional needs based on the applicant’s business structure.

Understanding the costs and accepted payment methods is essential for a smooth TAN application process.

Official Government Charges

The official fee for processing a new TAN application is ₹77. This amount comprises an application charge of ₹65 and an 18% Goods & Services Tax (GST). This fee is payable at the time of submitting your TAN application, either online or offline.

Applicants need to note that this fee is non-refundable, even if the application is subsequently rejected or not processed further for any reason. Therefore, applicants should ensure all details are accurate and complete before submission to avoid unnecessary loss of fees.

Payment Modes

Applicants have several options for paying the TAN application fee:

• Demand Draft (DD): The demand draft should be drawn in favor of 'Protean - TIN' and made payable at Mumbai. Applicants must mention their name and the unique 14-digit acknowledgment number on the reverse side of the demand draft.
• Cheque: A local cheque, drawn on any bank, can be deposited at any HDFC Bank branch across India (excluding the Dahej branch). The applicant must specify 'TAN Protean' on the deposit slip.
• Credit Card / Debit Card: This is a widely used and convenient option for online payments. However, using credit or debit cards may incur an additional charge of up to 2% (plus applicable taxes) levied by the bank providing the payment gateway facility.
• Net Banking: Similar to card payments, net banking is a secure and efficient online payment method. A nominal surcharge of ₹4 plus Goods & Services Tax may be applied for the payment gateway facility.

After submitting a TAN application, applicants can easily monitor their progress online using the unique acknowledgment number received during the application process.

To track the TAN application status online, follow these steps:

1. Visit the NSDL TIN Website: Access the official NSDL (Protean) TIN website, which is the designated portal for TAN services.
2. Navigate to Status Tracking: Locate the 'TAN' section on the website and click on the option typically labeled 'Know Status of Your TAN Application' or 'Track your TAN application status'.
3. Enter Acknowledgment Number: Input the unique 14-digit acknowledgment number that was generated and provided upon successful submission of the application. This number is the key identifier for tracking.
4. Complete Captcha and Submit: Enter the displayed captcha code for security verification and then click 'Submit'.
5. View Status: The system will then display the current status of the TAN application, indicating whether it has been issued, is still under process, or if there are any issues requiring attention.

Once a TAN is allotted by the Income Tax Department, the applicant receives an official TAN registration certificate, also known as the TAN allotment letter. This certificate serves as proof of compliance and must be retained for all business and financial records. While a physical copy may be dispatched to the applicant, a digital version is also available for quick access.

How to Download Your TAN Allotment Letter?

Once a TAN is officially allotted, the applicant can download the digital copy of their TAN allotment letter, which serves as official proof of their TAN.

The primary method to download the TAN allotment letter is through the NSDL TIN website:

1. Access NSDL TIN Website: Visit the official NSDL TIN website.
2. Select Application Type: On the portal, choose 'Application Type' as 'TAN-New/Change Request' from the available options.
3. Enter Acknowledgment Number: Input the 14-digit acknowledgment number received during the initial application process.
4. Enter Captcha and Submit: Provide the security captcha code and click 'Submit'.
5. Download Allotment Letter: The TAN status will be displayed on the screen.

The typical processing time for a TAN application is usually within 7 to 15 working days from the date of successful application submission. While the digital allotment may be quicker, the physical TAN letter might take additional time to be delivered to the registered address.

A notable exception applies to newly incorporated companies. The MCA and the Central Board of Direct Taxes (CBDT) have collaborated to streamline the process. As a result, both PAN and TAN are now allotted on the same day when applied through the SPICe+ form (Form INC-32) during company incorporation.

This integration greatly reduces waiting time for new businesses and is a major step toward improving the Ease of Doing Business in India. It enables faster compliance and quicker operational readiness right from the start of the business journey.

Obtaining a TAN is the first step; the next crucial phase is registering it on the TRACES portal. This registration is essential for accessing various tax functionalities and fulfilling ongoing compliance requirements.

How to Register and Activate TAN on the Income Tax E-filing Portal?

After successfully obtaining a TAN, it is mandatory to register it on the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal. This registration unlocks critical functionalities for deductors, including:

• Downloading Form 16/16A
• Accessing Form 26AS
• Viewing Challan Status
• Filing Correction Statements

Prerequisites for TRACES Registration: Before initiating registration, the applicant must have a valid and active TAN. Additionally, the PAN of the primary contact person for the entity must already be registered on the Income Tax e-filing portal. It is also recommended to ensure that the first TDS return, if any, has been processed at the Centralized Processing Center (CPC) before attempting registration.

Steps to Register as a Deductor on TRACES (via e-Filing Portal):

1. Access Income Tax Portal: Visit the official Income Tax e-filing portal (incometax.gov.in) and click on the 'Register' option.
2. Select User Type: From the options, choose 'Deductor' as the user type and proceed.
3. Enter TAN Details: Input the TAN, the organization's name, and contact details. Also, provide the valid PAN of the authorized person. Then, click 'Validate' or 'Continue'.
4. Proceed to TRACES Registration: If the TAN is found in the database but not yet registered with TRACES, the system will prompt to 'Register with e-Filing on TRACES'.
5. Provide Basic and Contact Details: Fill in the necessary basic information and provide comprehensive contact details, including a primary mobile number, email ID, and postal address.
6. OTP Verification: Two separate One-Time Passwords (OTPs) will be sent to the primary mobile number and email ID provided. Enter these OTPs to verify the contact information. Each OTP is valid for 15 minutes, and applicants have three attempts to enter the correct code.
7. Review and Confirm: Carefully review all the details entered on the verification page. Make any necessary edits before confirming the information.
8. Set User Credentials: Create a unique User ID and a strong password. The password must be between 8 and 14 characters, containing both uppercase and lowercase letters, a number, and a special character (e.g., @#$%).
9. Account Activation: An activation link and codes will be sent to the registered email and mobile number. The account activation must be completed within 48 hours of registration; otherwise, the account will be deactivated, requiring re-registration.
10. Confirmation: Upon successful registration and approval from the competent authority, a transaction ID will be displayed. This ID should be noted for future reference.

Registering on TRACES is a crucial final step to manage your TDS/TCS compliance effectively.

Maintaining accurate TAN data is crucial for seamless tax compliance. The Income Tax Department provides mechanisms for correcting existing TAN details and for surrendering duplicate TANs.

Process for Changing Name or Address in TAN

Applicants can request changes or corrections to their existing TAN data, such as changes in name, address, or contact details, through both online and offline channels.

Form to Use: To initiate a correction, applicants must fill out the 'TAN Change Request Form'. This is essentially Form 49B, but with the specific 'Change/Correction' option selected.

Steps for Correction:

1. Access NSDL TIN Portal: Visit the NSDL TIN portal and select the option for 'Online Application for Changes or Correction in TAN Data'.
2. Enter Existing TAN Details: Provide the current TAN number and select the specific fields that require modification (e.g., name, address).
3. Provide Revised Details: Accurately enter the new or corrected information for the selected fields.
4. Attach Supporting Documents: Include relevant documentary proof to support the requested changes. For example, proof of a new address (like a utility bill or lease agreement) or a certificate of incorporation/partnership deed for name changes. A board resolution may also be required if applicable.
5. Pay Processing Fee: A nominal processing fee of ₹77.00 (₹65 application charge + 18% GST) is payable for correction requests.
6. Submit Application: Submit the form online. If not using a Digital Signature Certificate (DSC), applicants must print, sign, and send the acknowledgment slip along with the supporting documents to Protean's Pune office within 15 days.

Processing Time: NSDL typically processes TAN modification requests within 3-5 business days.

How to Surrender or Cancel a Duplicate TAN?

It is illegal for a single entity or person to possess more than one Tax Deduction and Collection Account Number. If a duplicate TAN is inadvertently obtained, it is imperative to surrender the duplicate and continue using the originally allotted TAN.

To begin the process, first identify which of the TANs is the original and which is the duplicate that needs to be surrendered. It is generally recommended to retain the TAN that has been regularly used for filing returns and compliance.

Next, obtain the 'Form for Changes or Corrections in TAN Data for TAN Allotted,' also known as Form 49B. Within the form, select the option for surrender or cancellation of TAN.

Fill in all the required details, including the existing (original) TAN, the duplicate TAN intended to be surrendered, and a clear explanation for the surrender.

Attach the necessary supporting documents, which typically include a copy of the original TAN allotment letter, valid proof of identity and address, and a cover letter that outlines the background and reason for surrendering the duplicate TAN.

Submit the completed form along with the documents to the nearest TIN Facilitation Center (TIN-FC) or the relevant Income Tax Office.

There is generally no fee charged by NSDL or the Income Tax Department for processing the surrender of a TAN.

Before proceeding, ensure that all pending TDS/TCS returns linked to the TAN have been duly filed and that there are no outstanding tax liabilities, penalties, or dues. This is important to ensure a smooth and compliant closure of the TAN from tax records.

NSDL typically processes TAN surrender requests within 3-5 business days. This process helps rectify administrative errors and ensures that tax records remain accurate and compliant with legal requirements.