TAN Registration

Expert TAN Registration Services by Casela Advisors

In India, every entity responsible for deducting or collecting tax at source must obtain a Tax Deduction and Collection Account Number (TAN). Issued by the Income Tax Department, TAN is a unique 10-character alphanumeric identifier. It is mandatory to quote your TAN in all TDS/TCS returns, challans, and related income tax documents. Failure to do so may result in penalties. Casela Advisors streamlines the entire TAN registration process—online or offline—so you can secure your TAN promptly and remain compliant.

What Is a TAN (Tax Deduction and Collection Account Number)?

A Tax Deduction and Collection Account Number (TAN) is a ten-character alphanumeric code required for any individual or entity that deducts tax at source (TDS) or collects tax at source (TCS). TAN ensures that the Income Tax Department can track and reconcile all TDS/TCS transactions efficiently.

TAN Structure & Format:

First Four Characters (Alphabetic):
- First three letters denote the jurisdiction (e.g., “MUM” for Mumbai).
- Fourth letter is the first character of the deductor’s name (e.g., “C” for Casela Advisors).
Next Five Characters (Numeric): Unique digits assigned by the system.
Last Character (Alphabetic): A checksum letter generated by the system.

Who Needs to Obtain a TAN?

Tax-Deducting Entities
- All individuals or companies deducting TDS on salary (e.g., payroll), contractor payments, professional fees, rent (above ₹1,80,000), or other specified payments must have a TAN.
Entities Collecting TCS
- Businesses collecting TCS on specified transactions (e.g., sale of scrap, bullion, vehicles, or tendu leaves).
Non-Profit Organizations
- If they make payments subject to TDS or TCS under the Income Tax Act.
Branches of Companies
- Each branch that deducts or collects tax at source requires its own TAN.
Sole Proprietors & Individual Contractors
- Any individual or sole proprietor making payments that attract TDS/TCS (except salary income) must obtain a TAN.

Why Is TAN Important?

Legal Compliance (Section 203A, Income Tax Act, 1961)
- Under Section 203A, entities deducting or collecting tax must obtain a TAN. Without TAN, you cannot file TDS/TCS returns or deposit TDS/TCS with the government.
Mandatory for TDS/TCS Returns
- All TDS/TCS statements (Forms 24Q, 26Q, 27Q, 27EQ) require a valid TAN. Banks will reject challans without TAN during TDS/TCS deposit.
Tracking & Reconciliation
- TAN helps the Income Tax Department link deducted tax to the deductee’s Form 26AS, ensuring accurate credit of TDS to the recipient’s account.
Lifetime Validity
- Once allotted, a TAN remains valid for life. There is no requirement for renewal unless the number is lost or needs correction.

Advantages of TAN Registration

Guarantees Legal Compliance
- A valid TAN shields you from penalties under Section 272B (₹10,000) for failure to quote TAN or quoting an incorrect TAN.
Streamlined Tax Compliance
- Ensures smooth filing of quarterly TDS/TCS returns, accurate TDS/TCS payments, and timely issuance of Form 16/16A certificates.
Simplified Reconciliation
- TAN allows you to track TDS/TCS transactions easily via Form 26AS and reconciles payments against department records.
Professional Credibility
- Demonstrates to auditors, bankers, and stakeholders that your organization adheres to statutory tax obligations.

Documents Required for TAN Application

Before submitting your TAN application, ensure you have the following documents:

Proof of Identity (POI)
- Copy of PAN card (mandatory).
- Passport-sized photograph.
Proof of Address (POA)
- For a company: Registered office address (rent agreement, utility bill).
- For individuals: Aadhar card, passport, voter ID, or driver’s license.
Proof of Incorporation/Registration (for companies, LLPs, partnerships):
- Copy of Certificate of Incorporation or LLP/Partnership deed.
TAN Application Form
- Form 49B, duly filled and signed by an authorized signatory.