Tax Deduction and Collection Account Number (TAN) is a mandatory 10-digit alphanumeric number required by entities that deduct or collect tax at source (TDS/TCS). Every business or individual responsible for TDS deductions must obtain a TAN to ensure compliance with tax regulations.

Applying for a TAN online can seem like a complex process, but with a step-by-step approach, businesses can complete it smoothly. This guide provides a detailed, structured process for TAN application and how ASK ASSOCIATES makes the procedure effortless for clients.

What is TAN and Why is It Important?

Definition of TAN

TAN, issued by the Income Tax Department of India, is necessary for businesses or individuals who deduct tax at source before making payments such as salaries, professional fees, or contractor payments.

Importance of TAN for Businesses

• Mandatory for TDS deductions under the Income Tax Act, 1961
• Required for filing TDS returns and issuing TDS certificates
• Non-compliance results in penalties of up to ₹10,000
• Essential for smooth financial and tax compliance

Eligibility Criteria for TAN Application

Who Needs to Apply for TAN?

The following entities require a TAN:

• Companies & Businesses that deduct TDS on employee salaries or vendor payments
• Partnerships, LLPs, and Proprietorships making TDS-deductible payments
• Government and Private Organizations that collect tax at source (TCS)
• Trusts, Societies, and NGOs deducting tax from payments

Who Does Not Require TAN?

• Individuals who do not deduct tax at source
• Salaried employees who receive salaries after TDS deduction by employers

Step-by-Step Guide to Apply for TAN Online

Step 1: Visit the NSDL Website

• Go to the TIN-NSDL official website (https://www.tin-nsdl.com)
• Click on the ‘TAN’ section under ‘Services’

Step 2: Select the Appropriate Application Form

• Choose Form 49B, the prescribed form for TAN application
• Ensure you select the correct category (e.g., individual, company, partnership)

Step 3: Fill in the Application Form

• Enter Basic Details (Name, Business Name, PAN, and Address)
• Provide Business Information (Type, Nature, and Contact Details)
• Mention the TDS Deductor Category (e.g., company, government, bank, etc.)

Step 4: Review and Validate Information

• Check for errors or incorrect entries before submission
• Ensure the PAN details and contact details match official records

Step 5: Submit the Form and Pay the Application Fee

• Submit the application online
• Pay the applicable fee of ₹65 using Net Banking, Credit/Debit Card, or Demand Draft

Step 6: Receive the Acknowledgment Number

• After successful submission, a 15-digit acknowledgment number is generated
• Save this number for future tracking and reference

Step 7: Send Signed Acknowledgment to NSDL

• Print and sign the acknowledgment
• Send it to NSDL’s Pune office within 15 days of online submission

Step 8: Receive TAN Allotment from the Income Tax Department

• Once the application is processed, TAN is issued within 7-10 working days
• The TAN details can be checked online using the acknowledgment number

Documents Required for TAN Application

Mandatory Documents

• PAN Card of the applicant or business
• Business Registration Certificate (for companies and LLPs)
• Identity & Address Proof (Aadhaar, Passport, or Voter ID)
• Proof of Business Activity (GST certificate, trade license, etc.)

Optional Supporting Documents

• Bank Statement as additional proof
• Existing TDS-related documents (if applicable)

Common Mistakes to Avoid While Applying for TAN

Providing Incorrect Details

• Errors in PAN, business name, or contact information can delay the process

Failure to Send the Signed Acknowledgment

• Many applicants forget to send the signed acknowledgment to NSDL, causing rejection

Using Incorrect Payment Mode

• Ensure payment is made using valid modes as specified by NSDL

Applying for Multiple TANs

• A business is only allowed one TAN per entity; multiple applications can lead to penalties

Tracking Your TAN Application Status

Online Tracking via NSDL Portal

• Go to the NSDL website
• Enter the Acknowledgment Number
• Check the current status (Under Processing, Approved, Rejected)

Alternative Methods for Tracking

• Call the NSDL helpline and provide your application details
• Email NSDL support with your acknowledgment details

Penalties for Non-Compliance with TAN Regulations

Failure to Obtain TAN

• ₹10,000 penalty under Section 272BB of the Income Tax Act

Failure to Quote TAN on TDS Returns

• Processing delays and rejection of TDS returns

Late Filing of TDS Returns

• ₹200 per day penalty under Section 234E

Providing Incorrect TAN Details

• ₹10,000 fine under Section 272BB(1A)

How ASK ASSOCIATES Simplifies TAN Application for Clients

Expert Consultation for TAN Application

• ASK ASSOCIATES guides businesses in selecting the correct TAN category
• Personalized assistance in filling Form 49B correctly

Error-Free Documentation and Submission

• Ensuring PAN, business details, and supporting documents are accurate
• Verifying and reviewing the application before submission

End-to-End Application Management

• Handling online submission and tracking progress
• Following up with NSDL to ensure timely issuance of TAN

Assistance with TDS Compliance

• Helping businesses link TAN with TDS accounts
• Regular reminders for TDS filing and compliance

Post-TAN Support & Corrections

• Correction assistance if incorrect details were submitted
• Updating business details in TAN records if required

Why Choose ASK ASSOCIATES for TAN Registration?

• ✅ Hassle-Free Application Process – We handle the paperwork so you don’t have to
• ✅ Error-Free Filing – Ensuring compliance with NSDL & IT Department guidelines
• ✅ Fast Processing – Reducing delays and ensuring timely TAN issuance
• ✅ Dedicated Compliance Support – Ongoing TDS compliance assistance

ASK ASSOCIATES ensures a smooth, error-free TAN application process, helping businesses stay compliant with tax regulations effortlessly.