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TAN Registration

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TAN Registration in India

TAN (Tax Deduction and Collection Account Number) registration is a process mandated by the Income Tax Department of India for individuals or entities who are required to deduct or collect tax at source (TDS or TCS). TAN is a unique 10-digit alphanumeric number issued to those who need to deduct tax on payments such as salaries, payments to contractors, and others specified by the Income Tax Act.

Key Points about TAN Registration:

Who Needs TAN?
  • Employers deduct TDS from salaries
  • Entities deducting TDS on payments to contractors, rent, professional fees, etc
  • Collectors of tax at source (TCS).
Why is TAN Required?
  • It is necessary for the deduction and collection of taxes.
  • It is required to file TDS/TCS returns.
  • It must be quoted in TDS/TCS certificates and other related documents.
Structure of TAN:

TAN is a 10-digit alphanumeric number where the first four characters are letters, the next five are numbers, and the last character is a letter (e.g. ABCD12345E).

Usage of TAN:
  • TAN must be quoted in all TDS/TCS returns, payments, and communications with the Income Tax Department.
  • It is also required on challans for payment of TDS/TCS.
Penalties for Non-Compliance:

Failure to apply for TAN or to quote TAN in the specified documents can result in a penalty of ₹10,000.

Importance of TAN

The Tax Deduction and Collection Account Number (TAN) is crucial for entities required to deduct or collect tax at source. Here are its key importance:

  • Legal Requirement: It's mandatory under Indian law for entities responsible for deducting tax (TDS) or collecting tax (TCS) to have a TAN.
  • Tax Compliance: TAN ensures compliance with tax laws by accurately deducting and remitting TDS/TCS to the government.
  • Identification: It uniquely identifies the deductor or collector of tax in all communications, filings, and correspondence with the Income Tax Department.
  • Verification: It helps in verifying TDS/TCS payments made by deductors and ensures correct attribution of tax credits to taxpayers.
  • Penalty Avoidance: Non-compliance, such as failure to apply for TAN or quoting an incorrect TAN, can attract penalties and interest under the Income Tax Act.

Overall, TAN plays a critical role in facilitating smooth tax administration and ensuring that taxes deducted at source reach the government treasury in a timely and accurate manner.

Seamless TAN Registration Process with filinglounge

  • Visit FilingLounge.com: Go to the official FilingLounge website and navigate to the TAN registration section
  • Fill Out the Form: Complete the online application form provided on the website with accurate details
  • Upload Documents: Upload the required documents as specified.
  • Payment of Fee: Pay the required application fee through the available online payment methods.
  • Review and Submit: Review the application and submit it online.
  • Processing: FilingLounge.com will process your application, review the documents, and submit it to the relevant authorities.
  • Receive TAN: Upon successful verification, the TAN will be allotted and communicated to the applicant.

Benefits of Using FilingLounge.com for TAN Registration

  • Expert Assistance: FilingLounge.com provides access to tax experts who can guide you through the TAN registration process, ensuring accuracy and compliance.
  • Time-Saving: The streamlined online process saves time by reducing the need for physical visits and paperwork.
  • User-Friendly Interface: The platform is designed to be user-friendly, making it easy for applicants to navigate through the registration steps.
  • Secure Process: FilingLounge.com ensures that your personal and business information is securely handled and protected.
  • Real-Time Updates: Applicants receive real-time updates on the status of their application, ensuring transparency and peace of mind.
  • Customer Support: FilingLounge.com offers dedicated customer support to address any queries or issues during the registration process.

Related Guides

Documents Required For TAN

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

TAN FAQ's

What is TAN?

TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric number issued by the Income Tax Department of India to individuals or entities who are required to deduct or collect tax at source.

Who needs to obtain TAN?

Any individual or entity responsible for deducting or collecting tax at source on behalf of the Income Tax Department needs to obtain a TAN. This includes employers deducting TDS on salaries, banks deducting TDS on interest payments, and other entities involved in transactions requiring TDS.

Why is TAN required?

TAN is required for quoting in all TDS/TCS (Tax Collected at Source) returns, payment challans, and certificates. It ensures proper tracking and accountability of tax deducted or collected at source.

How can I apply for TAN?

You can apply for TAN online through https://filinglounge.com/ website or offline by submitting Form 49B at TIN-Facilitation Centers.

What documents are needed for TAN registration?

Generally, no specific documents are required for TAN registration. However, you need to provide details such as name, address, and nature of the deductor or collector.

How long does it take to get TAN?

Once the application is submitted, it usually takes about 7 to 10 working days to receive the TAN. The TAN allotment letter is sent to the address provided in the application.

Can I track the status of my TAN application?

Yes, you can track the status of your TAN application online through the filinglounge website using the 14-digit acknowledgment number provided at the time of application submission.

Is there any fee for applying for TAN?

Yes, there is a nominal fee for applying for TAN. The fee can be paid online through net banking, debit card, credit card, or UPI payment.

Can TAN be changed or updated?

Yes, you can change or update your TAN details by submitting a correction request. This can be done online through the filinglounge website.

What happens if TAN is not quoted?

Failure to quote TAN in TDS/TCS returns, payment challans, and certificates can lead to penalties and difficulties in processing these documents by the Income Tax Department.

How is TAN different from PAN?

TAN is specifically used for TDS/TCS purposes, while PAN (Permanent Account Number) is a unique identification number for individuals and entities for all tax-related transactions in India.

Can an entity have multiple TANs?

No, an entity or individual should have only one TAN. Having multiple TANs can lead to complications and penalties.

How do I surrender my TAN if it is no longer required?

If TAN is no longer required, you can apply for its surrender by submitting a request letter to the Income Tax Department, mentioning the reason for surrender along with the original TAN allotment letter.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.