Procedure of Acquiring a TAN Number for a Company

Every company responsible for Deducting Tax at Source must obtain a Tax Deduction and Collection Account Number (TAN).

What is a TAN?

TAN or Tax Deduction and Collection Account Number is a unique 10-digit alpha numeric number required to be obtained by all persons responsible for deducting or collecting the tax. Section 203A of the Income Tax Act, 1961, mandates quoting of TAN allotted by the Income Tax Department (ITD) on all TDS returns.

In case any person fails to apply for a TAN number, quote the TAN, or quote an incorrect TAN, a penalty of Rs. 10,000 shall be levied.

Structure of the TAN

The correct structure of TAN is as mentioned below:

TAN structure is as follows: ABBBB89899C

• The first three characters represent the city or state where the TAN was issued.
• The TAN's fourth character is the tax deductor's initial letter, which means the name of the Tax Deductor starts with this letter.
• The next five characters are system-generated numeric Numbers.
• A last character is an alphabetic Number, also known as a check digit, which is system generated.

Procedure for Obtaining a Valid TAN number

Broadly there are two modes of acquiring a valid TAN in the following mode:

Offline Mode of TAN registration

Individual Applicant

An application for allotment of TAN shall be made in duplicate in Form No. 49B at any TIN Facilitation Centers (TIN-FC).

Corporate Applicant

However, in the case of an applicant, being a company not registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No INC-7.

Online Mode of TAN registration

Application Form filling

The application for TIN allotment can be made online by filling out form-49B on the official website of NSDL.

Pay the TAN application Fee

After filing the form, the applicant must pay Rs 62 for filing the TAN application. The payment can be made by cash, cheque, demand draft, or net banking.

TAN number generated

Once the successful payment is made, a 14-digit acknowledgment number will be generated.

NSDL Application filing

The applicant shall submit the duly signed acknowledgment along with the required documents to the NSDL within 15 days from the date of the online application.

Applicant issued the TAN number

After NSDL verifies the documents and application, the TAN number will be communicated to the applicant.

To apply TAN Number for a Company, visit Registrationwala.com.