Tax Account Number (TAN) Registration

TAN is Tax Deduction and Collection Number. TAN is used by the Income Tax Department to track all payments and filings of persons or entities required to deduct tax at source and pay it to the Government. TAN is a 10 digit alpha numeric number.

As per Mandate from Income Tax department every business entity needs to deduct TDS (Tax Deduction at Sources), while making payment for certain business transactions, such as payment to Contractors/Sub-Contractor, or Professional for their services. After such deduction such payment need to be deposit in Govt. A/c through online banking or through challan to be deposited in specified Banks and, after that a return also needs to be filed in this regards. Simply TAN no is a must before anyone can proceed for Tax deduction or payment.TDS ensures the responsibility for payment of tax is diversified and the Government receives tax sooner.

Taking TAN No is not a legal mistake, however once you taken the TAN no, you need to mandatorily file quarterly return, even no tax has been collected by you. Hence it adds an additional compliance cost without any benefit. In fact if you forget to file return, you will end up paying 100 Rs late filing fee per day till the date of submission of returns.

It has been seen that many online company formation consulting firm offer free TAN No, without understanding the actual need of client. That practice actually put an additional compliance burden on the client.

No, Only those business which need to deduct TDS or Collect TDS need to apply for TAN No.

A copy of certificate of incorporation (COI) duly attested by the director has to be annexed along with form 49B. However, where the application is being made online, the acknowledgment which is generated after filling up the form will be required to be forwarded to NSDL.

No, PAN cannot be quoted where TAN is required. PAN and TAN serve two different purposes. Therefore, it is mandatory for those deducting tax at source to obtain a TAN.

To obtain TAN, application must be made in Form 49B at any of the authorized TAN Facilitation Center. Rajput Jain & Associates have associates with an authorized TAN Facilitation Center.

Process for TAN Registration

• The application can be made online through. You can apply for TAN online at the online NSDL-TIN website
• Select the online Registration for TAN registration
• Click on SUBMIT, after entering all mandatory fields in the TAN registration form.
• Print the acknowledgment and preserve the same for future reference. On Successful registration an email containing user ID in password protected PDF file will be sent to the registered email ID. On receipt of the email login to your TAN account.
• Activation of TAN Account
• After successful registration, TAN account is activated within three hours

Procedure to retrieve User ID & Password for Traces as under :

• Enter the following details in portal and get the Tan no retrieve
• Requirement for User ID & Password:
• TAN of Deductor
• Token No (TDS Acknowledgement No) of last filed return along with FUV file for the same.

TAN is required to be quoted in all TDS/TCS returns all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs.10000.

After taking TAN No every firm need to comply with 2 compliances:-

• Payment of tax deducted/Collected:- The Total payment deducted by assessee need to be paid by 7th of Next Month in Govt. A/c
• Filing of return :- After payment of taxes and Return of same should be uploaded for every Quarter before 15th of next month of the quarter ending