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Apply for TAN: Application, Acknowledgment & Payment Details

Updated on: 16 Jan, 2024 05:49 PM

A TAN (Tax Deduction Account Number or Tax Collection Account Number) is a ten-digit alphanumeric number. It must be obtained by all persons responsible for deducting tax at source or who are required to collect tax at source. The Income Tax Department of India allots TAN under section 203A of the Income Tax Act,1961. It is mandatory to quote TAN on all TDS returns and challans. We will brief you about the steps which need to be followed to apply for TAN.

What is the importance of a TAN Number?

All persons deducting the TDS need TAN because, without it, Tax Collected at Source (TCS) or Tax Deducted at Source (TDS) returns are not accepted by TIN facilitation centers. It should also be noted that banks do not accept challans for TDS/TCS payments if the deductor fails to quote the TAN number.

Section 203A has also made it mandatory to quote TAN in the following documents:

  1. TDS/TCS Returns: TAN is mandatory to be quoted in the TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) returns.
  2. TDS/TCS Payment Challan: TAN must be quoted in the TDS/TCS payment challans while making TDS/TCS payments.
  3. TDS/TCS Certificates: TAN must be quoted in the TDS/TCS certificates issued to the deductee/collectee.
  4. Annual Information Return: TAN must be quoted in the Annual Information Return filed by specified entities.
  5. Any other document as may be prescribed by the Income Tax Department.

What is the consequence of not quoting TAN?

As per section 272BB, if a person fails to comply with the provisions of Section 203A, i.e., does not quote TAN where mandatory, then the Assessing Officer may levy a penalty of INR 10,000/- for each such failure.


What is the application process to obtain a TAN number?

There are two different modes to apply for TAN. The first mode is Online paperless mode, and the second mode is Offline.

Steps to apply for TAN Online:

  1. Visit https://tin.tin.nsdl.com/tan/index.html and select “Online application for TAN (form 49B)”
  2. After selecting the category of deductors from the drop-down menu, click on the “Select button.
  3. Fill out the requisite details on the form; this screen will appear, and fill in all the mandatory details (marked with *)
  4. If the data submitted by the applicant fails at any formal level of validation, a response indicating the errors will appear on the screen.
  5. Forms can be submitted only after rectifying errors.
  6. If formal-level errors do not exist, a confirmation screen with data filled in by the applicant will be displayed.
  7. If an applicant requires any amendment in the application filled, he can choose it by selecting the Edit option.
  8. If the displayed information is correct, the applicant can choose the confirm option.
  9. On successful payment of fees( in case the mode of payment is other than DD or Cheque) an acknowledgment slip will be generated.
  10. The applicant shall save and print the acknowledgment and send it to NSDL at-
    Address:-
    NSDL e-governance Infrastructure Limited,
    5th floor, Mantri Sterling,
    Plot No. 341, Survey No.997/8,
    Model colony,
    Near Deep Bungalow Chowk,
    Pune-411016
    The envelope should be superscribed as ‘APPLICATION FOR TAN-Acknowledgment Number.’ (e.g., 'APPLICATION TAN - 88301020000244').

Steps to apply for TAN Online - using Digital Signature Certificate(DSC)

  1. Choose the ‘Apply Online’ option in the TAN module from https://tin.tin.nsdl.com/tan/form49B.html
  2. Select the DSC-based online TAN application option.
  3. Select the appropriate applicant category.
  4. Fill in the online application form.
  5. Insert the DSC of the authorized signatory and add the digital signature on the form.
  6. For DSC-based applications, only an online payment option is available.
  7. Generate the acknowledgment receipt having the 14-digit acknowledgment number.
  8. For DSC-based TAN applications, persons applying for the request need not send any document to the NSDL e-Gov website.

Steps to apply for TAN Offline:

  1. From the TIN FCs or the TIN website, Download the TAN application form.
  2. The form must be filled in block letters and probably in English.
  3. The applicant's address has to be an Indian address only.
  4. The duly filled and signed application form 49B needs to be submitted to the nearest TIN-FC.
  5. Left-hand thumb impression, if used, should be attested by a Magistrate, a Notary Public, or a Gazetted Officer, under official seal and stamp.
  6. No additional documents need to be submitted other than form 49B.
  7. Refer to the instructions given on the Form.
  8. An amount of Rs. 65 (incl GST) needs to be paid as a processing fee at the counter of TIN-FC.

Find TIN-FC by clicking here. Download the offline TAN application form by clicking here.


What documents are required to be submitted along with a TAN Application?

Any documents need not accompany the TAN Allotment application.
However, if the online mode is chosen, the acknowledgment generated on submission of the form must be downloaded, signed, and forwarded to NSDL by Post.

Address:-
NSDL e-governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No.997/8,
Model colony,
Near Deep Bungalow Chowk,
Pune-411016
The envelope should be superscribed as ‘APPLICATION FOR TAN-Acknowledgment Number.’ (e.g., 'APPLICATION TAN - 88301020000244').?


What are the modes which are available for payment of fees?

The following modes can process the payment fees:

  • Demand draft
  • Cheque
  • Credit card/Debit card
  • Net banking
  • Cash (if the offline form submit at TIN FC)
  • UPI
  • Bharat QR

How to track the status of your TAN Application online?

The application deductor can enquire about his TAN application status by accessing the NSDL-TIN website and clicking on the status track option. You can refer to the link - https://tin.tin.nsdl.com/pantan/StatusTrack.html. The applicant needs to quote the 14-digit acknowledgment number after three days after his application. This facility can also be availed from the Income-Tax Department website.

Apart from tracking the TAN application online, the applicant can alternatively tracked offline by contacting the TAN Call center (020-27218080) or send an SMS to 57575 to track its TAN Application status. (e.g., NSDLTAN to 57575)


Is it possible to make corrections if TAN is already allotted?

If TAN has already been allotted and you later find that there has been some mistake that needs to be corrected, then you can either

  • Make an online application for “Change or correction in TAN data” or
  • Fill out the "Form for Change or Correction in TAN data" and submit it to TIN Facilitation Centers.

Frequently Asked Questions

Q- How can I apply for a TAN?

TAN application forms can be submitted online or offline following the process described in the guide above.


Q- Who should apply for TAN?

Every person who is liable to deduct tax or collect the tax is required to obtain TAN except those required to deduct TDS under the following section

  • Section 194IA
  • Section 194IB
  • Section 194M

In all these three cases, PAN can be quoted instead of TAN.


Q- Is it necessary to apply for a different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend, commission, etc.?

No, the TAN allotted can be used for all the different deductions. In case if the tax is being collected at the source, the same can be used.


Q- In the case of multiple DDOs, should all of them apply for TAN?

Yes. In such a case, it is mandatory to give the following details clearly (whichever is applicable) in the application for allotment of TAN - The name of the Division, location of the branch, name of the branch, designation of the person responsible for deducting/collecting tax.


Q- What has to be done if we have been allotted a duplicate TAN?

In case a duplicate TAN has been allotted, the applicant should generate an application for cancellation of the TAN, which has yet to be used. TAN cancellation application can be processed from Form for Changes or Correction in TAN, which can be downloaded from the NSDL website ( https://www.tin-nsdl.com ). TIN Facilitation Centres also provide applications for the same.


Q- What are the charges for processing the TAN application?

The amount charged for processing the application for TAN is INR 65.00 (55.00 application charges + 18 % Goods and Services Tax). This amount is non-refundable in case the application gets rejected. A DD/Cheque can also be drawn in favor of NSDL-TIN. Post submission of the form, the concerned department will verify the details. If the application is correct, the TAN details will be sent to the applicant’s address, or a mail with the same details will be sent if the application was made online.


Q- What details are mentioned in the acknowledgment sent by NSDL?

The acknowledgment consists of the following details:

  • a.) A unique acknowledgment number of 14 digits.
  • b.) Name and contact details of the applicant.
  • c.) Status of applicant
  • d.) Details with respect to payment
  • e.) Space provided for signature

Q- What are the reasons for TAN rejection?

TAN application can be rejected due to the following reasons

  • There was a problem in processing the application due to insufficient or incorrect information
  • There was a problem in processing the payment due to wrong details entered, insufficient bank balance, etc
  • A TAN number has already been allotted to your business name

Q- What should be done if a TAN application is rejected?

If your TAN application gets rejected, you need to refill Form 49B. Make sure that the mistakes you made last time are not repeated.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.