Tax Deduction and Collection Account Number, commonly known as TAN, is a 10-digit alphanumeric number. It is required to be obtained by all persons who are responsible for deducting or collecting the tax. It is allotted by the Income Tax Department and is required to be mandatorily quoted on all TDS returns.

Why is TAN Required?

All those who are required to deduct or collect tax at source need to apply for and obtain the 10-digit alphanumeric TAN. TAN is because, without it, Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centres. Banks to do not accept the challans for TDS/TCS payments if TAN is not quoted. It needs to be mentioned that failing to apply for TAN or not quoting the 10-digit alphanumeric number in specified documents like TDS/TCS returns, e-TDS/e-TCS returns, TDS/TCS certificates, and TDS/TCS payment challans can attract a penalty of Rs.10,000.

Application Process

There are two modes for applying for TAN:

  • OFFLINE – An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN Facilitation Centres.
  • ONLINE – Online application for TAN can be made on the NSDL TIN website.

Documents Required

The applicant is required to submit the following documents with the relevant application form:

  • Proof of identity (POI)
  • Proof of address (POA)
  • Certificate of Incorporation in case of Registered Entities.
  • Deed/Agreement in case of Unregistered Entities.