All about TAN : Tax Deduction Account Number

What is TAN?

Tax Deduction Account Number (TAN) is an alphanumeric number issued to individuals who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. This number has to be quoted by the deductor in every correspondence related to TDS or TCS.

Who must apply for TAN?

All those persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.

Structure or Format of TAN

TAN structure is as follows:

AAAA99999A

First four characters are letters, next 5 numerals, last character letter.

• If the TAN does not follow the above structure, then the TAN will be shown invalid.
• The first three characters represent the city or state where the TAN was issued.
• The fourth character of the TAN is the initial letter of the tax deductor.

Procedure for getting TAN

It can be obtained by filing an application in form no. 49B to any of the TIN facilitation Centres (TIN-FC) namely NSDL. Addresses of the TIN-FC as well as the forms can be downloaded from the website www.incometaxindia.gov.in or http://tin-nsdl.com. The application can also be made online through http://tin-nsdl.com. The fee for processing TAN application is Rs.50/- + service tax (as applicable). This can be paid by:

• Cash at TIN-FC counter, or
• Demand draft (in favour of ‘NSDL-TIN’), or
• Cheque (in favour of ‘NSDL-TIN’), or
• Credit card

Know your TAN application status on SMS

Type ‘NSDLTAN(space)14 digit Acknowledgement no.’ and send it to 57575.

How will the new TAN number be intimated to the deductor?

NSDL will ensure intimation of new TAN at the address indicated in the Form 49B or against the acknowledgement in case of online applications for TAN.

What is duplicate TAN?

Duplicate TAN is a TAN which has been obtained by oversight or mistake by a same person who is responsible for deducting/collecting tax and who already has a TAN allotted to him earlier. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.

Procedure for cancellation of duplicate TAN

In case duplicate TANs have been allotted, the TAN which has been used regularly should be used. The rest of the TANs should be surrendered for cancellation using “Form for Changes or Correction in TAN” which can be downloaded from the website of NSDL (http://tin-nsdl.com). The application can be made online as well as in physical form. The TAN can be cancelled by following procedure:

• Go to http://tin-nsdl.com
• Download the form “Form for Changes or Correction in TAN”
• Fill up properly and indicate TAN numbers you want to cancel in point 6 of the Form.

Procedure for Surrendering of TAN

Where TAN allotted, is not required anymore by the assessee/deductor. The deductor has to make an application with the jurisdictional A.O. (TDS), on a plain paper, requesting for cancellation of TAN and state reasons for such a request.