TAN — Tax Deduction and Collection Account Number — is a unique 10-character alphanumeric identifier issued by the Income Tax Department under Section 203A of the Income-tax Act, 1961, mandatory for every person responsible for deducting tax at source (TDS) or collecting tax at source (TCS). Whether you are a company, LLP, firm, trust, individual, or HUF making specified payments — salaries, rent, contractor payments, professional fees, interest, commission — you must obtain a TAN, quote it in every TDS / TCS challan, return, and certificate, and comply with the entire TDS / TCS ecosystem under Chapters XVII-B and XVII-BB of the Act.
TAN registration is done by filing Form 49B online through the NSDL / Protean portal (tin.tin.nsdl.com) or offline at a TIN Facilitation Centre, with a government fee of ₹65 (plus GST). Once allotted, TAN must be quoted in Form 24Q / 26Q / 27Q / 27EQ TDS returns, all TDS / TCS challans (ITNS 281), TDS certificates (Form 16 / 16A / 27D), and all correspondence with the Income Tax Department. Failure to obtain TAN or quote it correctly attracts penalties under Section 272BB — ₹10,000 per default. Our team handles end-to-end TAN registration, TAN correction, TAN deactivation and surrender, as well as ongoing TDS / TCS compliance linked to your TAN.
All companies — private, public, OPC, Section 8 — deducting TDS on salary, contractor, rent, professional fees, interest must obtain TAN before making first TDS payment; CIN required for Form 49B.
LLPs and firms paying salary to employees, rent above ₹50,000/month (Sec 194-IB), or contractor payments must register TAN; LLPIN / deed reference for Form 49B; partner details required.
Individuals and HUFs are generally exempt unless their accounts are audited under Sec 44AB; but required if paying rent above ₹50,000/month under Sec 194-IB (without audit) or conducting business with TDS obligations.
Trusts, societies, charitable institutions, and NGOs paying salary to staff, professional fees, or rent must deduct TDS and require TAN; FCRA-funded entities need TAN for foreign receipt compliance too.
Central / State Government departments, municipal bodies, autonomous bodies, and PSUs must have TAN; government deductors use challan ITNS 281 (or Book Adjustment) and file Form 24G through NSDL.
Sellers of specified goods / services — scrap, tendu leaves, minerals, alcohol, forest produce, e-commerce operators, overseas remittances under LRS (Sec 206C / 206CCA) — must collect TCS and quote TAN.
Change of name, address, category of deductor, or other TAN master data requires a correction application through NSDL / Protean portal; same Form 49B with "correction" option; supporting documents needed.
Dissolved firms, merged companies, or entities no longer deducting TDS should surrender their TAN to avoid ghost return filing obligations; surrender letter to jurisdictional AO with Form 49B correction request.
Every person required to deduct or collect tax at source must obtain TAN and quote it in all challans, returns, certificates, and correspondence; failure = Sec 272BB penalty of ₹10,000.
Single form for new TAN, correction, or re-issue; available online at NSDL Protean portal (tin.tin.nsdl.com) and offline at TIN-FC; fee ₹65 + GST; processing 7–15 working days.
TAN format: first 4 characters = city code (e.g., MUMH for Mumbai HQ), next 5 = numeric sequence, last 1 = alphabetic check digit; e.g., MUMH12345G.
Failure to apply for TAN, quote TAN incorrectly, or quote another person's TAN — ₹10,000 penalty per default; also applies to quoting PAN in place of TAN.
TAN must be quoted on every ITNS 281 challan for TDS / TCS deposit; payment due by 7th of next month (March: 30 Apr); interest Sec 201(1A) for late deposit — 1.5% per month.
All TDS / TCS deposited under your TAN reflects in the deductee's Form 26AS / AIS; correct TAN quoting is critical — wrong TAN means credit not available to the deductee, leading to disputes.
Form 24Q (salary), Form 26Q (non-salary residents), Form 27Q (non-residents), Form 27EQ (TCS) — filed quarterly; due dates: Q1: 31 Jul, Q2: 31 Oct, Q3: 31 Jan, Q4: 31 May.
Every TAN application requires correct AO code (Area Code, AO Type, Range Code, AO Number) based on entity location; wrong AO code leads to jurisdictional issues; NSDL portal has AO code search.
Individuals / HUFs paying rent above ₹50,000/month must deduct TDS at 5% — but can use Form 26QC (one-time) without TAN; however, recurring rent deductors and audit-covered individuals must have TAN.
If the deductee / collectee has not filed ITR for last 2 years and TDS / TCS exceeds ₹50,000, TDS at double rate or 5% (higher) applies; deductor must check compliance portal before deducting.
| Obligation | Provision | Due Date / Threshold | Penalty / Interest for Default |
|---|---|---|---|
| Obtain TAN | Sec 203A | Before first TDS / TCS payment | ₹10,000 – Sec 272BB |
| Quote TAN on Challan / Return | Sec 203A | Every ITNS 281 & return | ₹10,000 – Sec 272BB |
| TDS Deposit (monthly) | Sec 200 | 7th of next month (Mar: 30 Apr) | 1.5% p.m. – Sec 201(1A) |
| Form 24Q – Salary TDS Return | Rule 31A | Q1: 31 Jul / Q2: 31 Oct / Q3: 31 Jan / Q4: 31 May | ₹200/day – Sec 234E |
| Form 26Q – Non-Salary TDS Return | Rule 31A | Q1: 31 Jul / Q2: 31 Oct / Q3: 31 Jan / Q4: 31 May | ₹200/day – Sec 234E |
| Form 27Q – NR TDS Return | Rule 31A | Same quarterly due dates | ₹200/day – Sec 234E |
| Form 27EQ – TCS Return | Rule 31AA | Q1: 15 Jul / Q2: 15 Oct / Q3: 15 Jan / Q4: 15 May | ₹200/day – Sec 234E |
| Form 16 – Salary TDS Certificate | Sec 203 | By 15 June of AY | ₹100/day – Sec 272A(2) |
| Form 16A – Non-Salary Certificate | Sec 203 | 15 days from return due date | ₹100/day – Sec 272A(2) |
| Non-Deduction / Short Deduction | Sec 201 | Deemed assessee in default | TDS + 1%/1.5% interest + 271C penalty |
End-to-end Form 49B filing — online via NSDL Protean portal or offline TIN-FC; entity type selection, AO code identification, document preparation, fee payment, and TAN allotment follow-up.
Name change, address update, category correction, AO code change — correction Form 49B filing with supporting documents; post-merger / restructuring TAN master data update.
TAN closure for dissolved firms, merged entities, or non-operating organisations; surrender letter drafting, outstanding dues clearance, NIL return filing, AO correspondence.
Complete TDS compliance framework post-TAN — payment schedules, ITNS 281 challan setup, vendor TDS rate determination, Sec 206AB / 206CCA non-filer check, compliance calendar.
Form 24Q (salary), Form 26Q (non-salary), Form 27Q (NR payments), Form 27EQ (TCS) — quarterly preparation and NSDL portal filing with FVU validation; error rectification.
Form 16 (salary – Part A & B), Form 16A (non-salary), Form 27D (TCS) — generation via TRACES portal; timely issue to deductees; bulk certificate handling for large payrolls.
Correction of filed TDS returns — challan correction (C3), deductee detail update (C5), adding new challan / deductee (C9); TRACES online correction and CPC-TDS compliance.
Form 13 application for lower / nil deduction under Sec 197; Sec 197A self-declaration (Form 15G / 15H); vendor advisory on DTAA benefit for NR payments (Sec 90 / 91).
Sec 200A / 206CB intimation response, short-deduction demand reconciliation, TRACES demand resolution, CPC-TDS objection filing, Sec 201 default rectification.
Matching TDS credits in deductee's 26AS / AIS with deductor's 26Q / 24Q; identifying mismatch; revised return filing; credit dispute resolution with CPC-TDS.
Sec 195 TDS on payments to non-residents — rate determination, DTAA benefit, Form 15CA / 15CB, remittance approval, Form 27Q filing, TRACES NR compliance.
Comprehensive TDS compliance review — Sec 44AB Clause 34 audit reconciliation, deduction rate correctness, deposit timeliness, return accuracy, penalty exposure assessment.
Every new company, LLP, or firm expecting to pay salary, contractor fees, rent, or professional charges must register TAN before the first such payment is made.
The moment you hire a salaried employee, TDS under Sec 192 is triggered — TAN registration, Form 24Q filing, and Form 16 issuance become mandatory obligations.
Businesses paying rent above ₹50,000/month must deduct TDS under Sec 194-I and require TAN; individuals covered under Sec 194-IB may use Form 26QC without TAN for one-time payments.
Payments to contractors (Sec 194C), professionals (Sec 194J), agencies, or sub-contractors crossing threshold require TDS deduction — TAN is mandatory before first payment.
Sec 200A / 206CB intimation, short-deduction demand, or 133(6) TDS notice — immediate TAN-linked compliance review, response, and rectification required.
Post-merger, the surviving entity continues with its TAN; the merged entity's TAN must be surrendered; TDS returns must be aligned to the correct surviving TAN from appointed date.
Any payment to a non-resident — royalty, interest, professional fee, FTS — triggers Sec 195 TDS; TAN is mandatory; Form 15CA / 15CB and Form 27Q filing required.
E-commerce operators collecting payments for sellers (Sec 206C(1H) / 206CCA), overseas LRS remittances, or sale of specified goods must register TAN for TCS collection and Form 27EQ filing.
Confirm TAN requirement, entity category, and correct AO code (Area Code / Range / AO No.) based on registered office jurisdiction via NSDL portal.
Gather PAN, incorporation / registration documents, authorised signatory proof, address documents, and DSC for online submission.
Complete Form 49B accurately — entity details, category, AO code, signatory information; pay ₹65 + GST fee; submit online (NSDL) or at TIN-FC.
Save 14-digit acknowledgement number; track TAN allotment status on NSDL portal; average processing time 7–15 working days.
TAN communicated via post and email; register on TRACES, set up TDS compliance calendar, ITNS 281 challan process, and return filing schedule.
Partner with our experts for end-to-end TAN registration — Form 49B filing, AO code identification, TAN correction, surrender, TRACES setup, quarterly TDS / TCS return filing, Form 16 / 16A generation, and complete TDS compliance advisory.
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