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Tax Deduction and CAN Registration

Facing delays with your Tax Deduction or CAN registration? Our expert consultants offer end-to-end support to simplify and speed up the process. Since 2019, we've helped over 5,000 clients achieve smooth registration and compliance.

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TAX DEDUCTION ACCOUNT NUMBER (TAN) - An Overview

A Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric code issued by the Income Tax Department of India. It is mandatory for businesses and entities responsible for deducting or collecting tax at source (TDS/TCS).

TAN is essential for filing TDS/TCS returns, issuing TDS certificates (like Form 16/16A), and depositing deducted tax to the central government. Without a valid TAN, deductors cannot comply with key tax responsibilities, making it a critical compliance requirement.

Whether you’re a company, proprietorship, partnership, trust, NGO, or government body, TAN registration ensures your tax deductions and collections are processed accurately and on time.

Limited Liability Partnership
Why is TAN Registration Important?
  • Legal Compliance: Mandatory under the Income Tax Act, 1961, for all entities deducting or collecting tax.
  • TDS/TCS Filing: Required for submitting quarterly TDS/TCS returns.
  • TDS Certificates: Necessary for issuing Form 16, 16A, and other related documents.
  • Tax Deposits: Without TAN, deducted/collected tax cannot be deposited with the government.
  • Penalty Avoidance: Non-compliance can attract a penalty of ₹10,000 under Section 272BB.
Structure of TAN

TAN consists of 10 alphanumeric characters in the following format:

  • First 4 Characters: Alphabets – first three denote the jurisdiction, fourth denotes the entity type (e.g., company, firm).
  • Next 5 Characters: Unique numeric code.
  • Last Character: An alphabetic check code.
Who Needs TAN Registration?

TAN is mandatory for the following entities:

  • Companies deducting TDS on salaries, contractor payments, rent, interest, etc.
  • Partnership firms and LLPs liable to deduct TDS.
  • Proprietorships making TDS-applicable payments.
  • Government departments or agencies collecting or deducting tax.
  • Banks and financial institutions.
  • Trusts, NGOs, and societies involved in TDS-related transactions.
LLP
Why is GST Registration Ideal for Your Business?

GST registration provides legal recognition to businesses as suppliers of goods or services under the Goods and Services Tax regime. It enables businesses to collect GST from customers and pass on the credit of the taxes paid on purchases.

This registration is essential for businesses that exceed the specified turnover threshold or engage in inter-state supply. It enhances compliance, builds trust with stakeholders, and is often mandatory for participating in government tenders or obtaining business loans.

Additionally, registered businesses can claim Input Tax Credit (ITC), reducing the overall tax burden and improving profitability.

Difference Between PAN and TAN

Particulars PAN TAN
Full Form Permanent Account Number Tax Deduction and Collection Account Number
Purpose Identification of taxpayers Identification of tax deductors/collectors
Requirement For all individuals and entities filing income tax returns Mandatory for those deducting/collecting TDS/TCS
Format 10-character alphanumeric 10-character alphanumeric (different structure)
Issued By Income Tax Department Income Tax Department

Key Benefits of TAN Registration

TAN registration is essential for individuals and entities responsible for deducting or collecting tax at source (TDS/TCS). It simplifies tax compliance, enhances business credibility, and ensures seamless communication with tax authorities.

Key Benefits of TAN Registration
Smooth TDS/TCS Compliance

Smooth TDS/TCS Compliance

Enables easy deduction, collection, and deposit of tax with proper tracking under the Income Tax Act.

Mandatory for Returns

Mandatory for Returns

Essential for filing quarterly TDS/TCS returns and maintaining compliance records.

Issuing TDS Certificates

Issuing TDS Certificates

Required for generating and issuing Form 16, Form 16A, and other TDS-related certificates to employees and vendors.

Legal Validity

Legal Validity

Ensures adherence to Income Tax laws and protects businesses from penalties for non-compliance.

Unique Identification

Unique Identification

Helps the government track tax deducted or collected at source by different organizations and entities efficiently.

TAN Registration Documents

Documents Required for TAN Registration

The documents required for obtaining a Tax Deduction and Collection Account Number (TAN) vary depending on the type of applicant — individual, company, partnership, or organization. However, the following documents are generally applicable:

  • PAN card of the applicant or business entity
  • Proof of business registration
    • Partnership Deed (for Partnership)
    • Certificate of Incorporation (for Companies)
    • LLP Agreement (for LLPs)
  • Address proof of the applicant or business
    • Electricity bill, or
    • Property tax receipt, or
    • Rent agreement
  • Identity proof of the authorized signatory
    • Aadhaar card, or
    • Passport, or
    • Voter ID
  • Communication address and contact details (mobile number and email)
  • Power of Attorney or authorization letter (if application filed by a representative)

Procedure for Obtaining TAN

The process of obtaining a Tax Deduction and Collection Account Number (TAN) can be completed both online and offline. Below is the step-by-step procedure for TAN registration through the NSDL TIN portal or authorized facilitation centres:

  • Application Submission: File Form 49B (Application for TAN) online through the NSDL TIN portal or offline at a TIN Facilitation Centre.
  • Payment of Fees: Pay a nominal government fee at the time of submission. Online payment can be made via credit/debit card or net banking.
  • Acknowledgement Generation: After successful submission, an Acknowledgement Number is generated, which can be used to track your TAN application status.
  • Verification and Processing: The Income Tax Department verifies the details and documents provided in the application.
  • Issuance of TAN: Upon successful verification, the TAN is allotted and an official intimation letter is dispatched to the applicant’s registered address.

Why Choose Subrudhi for TAN Registration

Subrudhi ensures a smooth and hassle-free TAN registration experience. From accurate Form 49B filing to prompt approval, we provide end-to-end support while ensuring full compliance with TDS/TCS provisions.

Expert Guidance

Assistance in filling Form 49B accurately to avoid rejections.

End-to-End Assistance

From application submission to approval, we manage the complete process.

Compliance Assurance

Ensuring adherence to all TDS/TCS rules and regulations.

Quick & Hassle-Free

Minimal documentation and a fast-track process for timely TAN issuance.

Dedicated Support

Our team is available for queries, follow-ups, and guidance throughout.

Our Comprehensive TAN Service Includes:

✓ Assistance with Form 49B preparation

✓ Submission via NSDL TIN portal or Facilitation Centre

✓ Payment of TAN application fees

✓ Verification and follow-up with Income Tax Department

✓ Issuance and delivery of TAN intimation letter

✓ Guidance on TDS/TCS compliance and returns

✓ Dedicated support for queries and clarifications

Frequently Asked Questions (FAQs)

Have a look at the answers to the most asked questions about TAN Registration

TAN (Tax Deduction and Collection Account Number) is required for all individuals or entities responsible for deducting or collecting tax at source (TDS/TCS).
TAN can be applied online through the NSDL TIN portal (tin-nsdl.com) or offline at TIN Facilitation Centres by submitting Form 49B.
Common documents include PAN of the applicant or entity, proof of identity, address proof, and authorization letter if applied through a representative.
Yes. TAN is mandatory for filing quarterly TDS/TCS returns and issuing TDS certificates like Form 16/16A.
It usually takes 5–7 working days to receive the TAN after successful submission and verification of documents.
No. An entity is allowed only one TAN, which is unique and valid across India.
A nominal government fee is required for TAN application. No charges are applicable if applied directly through NSDL or TIN Facilitation Centres.

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