TAN Registration in India is mandatory for any person or entity responsible for deducting or collecting tax at source under the Income Tax Act, 1961. TAN (Tax Deduction and Collection Account Number) is required for depositing TDS/TCS and filing related returns. In this Saving Mantra guide, we explain what TAN is and provide a step-by-step process for TAN registration in India in simple terms.
What is TAN?
TAN is a 10-character alphanumeric number issued by the Income Tax Department of India. It is compulsory for all deductors and collectors of tax at source and must be quoted on all TDS/TCS returns, challans, and certificates.
Who Needs TAN Registration?
TAN registration is mandatory for:
- Employers deducting TDS on salary
- Businesses deducting TDS on payments like rent, professional fees, or contractor payments
- Banks and financial institutions
- Companies and partnership firms
- Any entity liable to collect TCS
Benefits of TAN Registration
- Mandatory compliance for TDS/TCS provisions
- Enables filing of TDS returns
- Required for issuing Form 16 / 16A
- Avoids penalties for non-compliance
- Builds legal credibility for business operations
Step-by-Step Process for TAN Registration in India
Step 1: Determine Eligibility
Ensure your business or organization is required to deduct or collect tax at source under applicable provisions.
Step 2: Choose Application Mode
Apply for TAN either:
- Online through authorized portals
- Offline by submitting a physical application
Step 3: Fill TAN Application Form (Form 49B)
Enter accurate details such as:
- Name of deductor
- Address and contact details
- Type of deductor (Company, Firm, Individual, etc.)
- Nature of payments liable for TDS/TCS
Step 4: Submit Required Documents
Generally, no supporting documents are required. However, correct PAN and address details are essential.
Step 5: Pay Application Fee
Pay the prescribed fee online or via demand draft/cheque (for offline mode).
Step 6: Acknowledgement and Verification
On submission, an acknowledgement number is generated. The application is then verified by the authorities.
Step 7: TAN Allotment
After successful verification, TAN is allotted and communicated to the applicant by email or post.
Time Required for TAN Registration
TAN is generally allotted within 5–10 working days, subject to correct application details.
Post TAN Registration Compliance
- Deposit TDS/TCS within due dates
- File quarterly TDS returns
- Issue TDS certificates (Form 16/16A)
- Maintain proper records and challans
Penalty for Not Obtaining TAN
Failure to obtain TAN can attract a penalty of ₹10,000 under the Income Tax Act.
Why Choose Saving Mantra for TAN Registration?
- Quick and error-free TAN application
- Expert guidance on TDS compliance
- Affordable and transparent pricing
- Support for TDS returns and corrections
- End-to-end professional assistance
Conclusion
TAN Registration in India is a statutory requirement for entities involved in TDS or TCS. Following the correct step-by-step TAN registration process ensures legal compliance and avoids penalties. With Saving Mantra, you can obtain TAN easily and manage your TDS obligations smoothly.