If you are someone falling under the applicability of TDS deduction, you would probably be required to have knowledge of TAN number or may be considering applying for TAN registration soon, then you will be required to have complete knowledge of TAN requirements and registration process. Please read further to go through for understanding the complete process of TAN registration.

For those unknown, TAN is an acronym for Tax Deduction & Collection Account Number, which is a ten digit alphanumeric unique identification number issued by the Income Tax Department to a TDS deductee, who are responsible to make TDS deductions and submitting such taxes to the Central Government. As per the provisions of section 203A of the Income Tax Act 1961, it is mandatory to obtain TAN registration by eligible TDS deductors and further to mention such unique number in all TDS returns.

As far as the uniqueness of TAN is concerned, each digit of the TAN number denotes different aspects of taxation. First four digits of the TAN number are alphabets while next five are numbers with the last one being an alphabet. Out of which, the first four alphabets provide for the name of city or state of the applicant and the fourth letter provides for the first letter of the applicant’s name.

Thus, it is necessary for a TAN holder to mention TAN registration number in all documents such as TDS/TCS/Annual Information Returns, instalment challans, and certificates. Where TAN number is not mentioned in the above-mentioned documents, the profits documented are not recognized by TAN facilitation authorities and banks in case of payments challans for TDS/TCS payments. However, it is unlawful for an applicant to either obtain or hold more than one TAN registration for same branch. Such applicant may do so, in case of businesses having branches/divisions in India.

As per the provisions of Income Tax, a sole proprietorship business or any other business entity such as a Company, LLP, and Partnership firm etc.) including eligible Non-profit organizations shall deduct tax at source while making payments such as wages or salary, contractor or sub-contractor payments, lease payments crossing Rs. Rs.1, 80,000 annually etc. On making deduction of Tax at source, such registered applicant will issue a TDS certificate confirming collection of tax to be submitted to the Central Government. Nevertheless, salaried individuals are ineligible to obtain TAN registration or to even deduct tax at source.

TAN Registration With Legalmart

The process of TAN registration is a simple and quick process which could be easily completed either through online or offline mode. However, it is always important to take expert assistance for helping you throughout the procedure of getting TAN registration certificate for TDS deduction and collection purposes. Legalmart will provide you end-to-end guidance for registration as well as payment of professional tax at your convenience at standard charges in an efficient and timely manner.

Benefits Of TAN Registration

There are multiple benefits linked with TAN registration for an applicant. Some of the benefits include-

Simple Process of Registration- The process of TAN registration is simple, quick and timely process where a TAN applicant receive TAN registration within a period of 7-10 days from the date of submission of application and documents. For which, the application needs to be submitted physically along with all necessary attachments.
Facilitates multiple purposes- Not only TAN allows deposit of TDS to central government, but also serves various purposes such as-
- Generation of Form 16.
- Filling & submission of TDS returns.
- Generation of invoices of TDS/TCS certificates and payment challans.
- Reconciliation of data related to TDS with the TAN holder details available on the Income Tax portal.
- Checking status of TAN registration and verification process through name or TAN number on the portal.

Facilitates communication with Government authorities- A TAN holder can easily communicate with the Income Tax department for any query regrading TDS or TCS service from the updated records of the active TAN details on the portal.
Availability of Latest input file for tax purposes- TAN holders shall have the benefit to easily download the latest input file from the portal for preparing correction statements and check the status of challan online.
Complete Transparency- In cases where a TAN holder files his/her TDS return on the portal, he/she gets the details such as address and pin code auto-populated under prior instructions from the Income tax Department which offers convenience for TAN holder to file returns as well complete transparency in the taxation matters.
Lifetime Validity- TAN registration is a onetime process which is allowed at minimal government fee for processing and holds a life-time validity. Thus, a TAN holder doesn’t need to go through the hassle of renewal of registration.

Read More About: “GST Registration“

Disadvantages of TAN Registration

Hefty Penalty for Non-registration or Non-mention of TAN – It is mandatory to obtain TAN registration for the purpose of submission of TDS payments and filling TDS returns. Failure to apply for TAN or failure to mention TAN number in specified documents can lead to up to Rs.10, 000 as penalty.

TAN Registration process

For the purpose of easy facilitation of the TAN registration, the Government of India has allowed the process of TAN registration through online as well as offline mode. Following is the step-by-step process that could be used by applicants to apply for a new Tax Deduction Account Number (TAN) as per their convenience. Provided below is the offline as well as online process of TAN registration-

Process of Offline Registration: Where an applicant intends to obtain TAN registration through offline mode, such applicant should download from 49B from the online portal of Income Tax Department. After filling information in the form 49B, the form should be submitted in duplicate to the nearest TIN facilitation centre (TIN-FC) on the address given on the NSDL-TIN portal.

On the other hand, if the applicant decides to obtain TAN registration through online portal, then he/she needs to follow the steps provided below-

Step 1. Log on to www.tin-nsdl.com/index.html and select “TAN Services”.
Step 2. Select ‘New TAN’ application from the list provided for the “category of deductors” and click Select.
Step 3. Next the applicant will be able to view online form 49B provided on the portal and fill the form.
Step 4. Fill the form with all sought details and click “Submit”.
Step 5. On successful submission of the application, the applicant shall receive a 14 digit acknowledgement containing details such as-
- Name of the applicant.
- Status of the applicant.
- Communication Details.
- Details related to payment.
- Signature.

Step 6. On receipt of the acknowledgement, the applicant is required to get a printout of the acknowledgment along with other documents and to be later sent to NSDL e-Governance Infrastructure Limited.

Document submission for Tan Registartion

Following is the list of documents required for the purpose of TAN registration-

Proof of registered address of the business.
Passport-sized photographs as per the mentioned specifications.
Duly filled and signed TAN application.
PAN card of the concerned individual or business entity.
Certification of incorporation of the business entity.
Proof of business constitution such as MOA &AOA, partnership deed, LLP Agreement etc.

TAN Registration Status or Track TAN Status

An applicant can check status of his TAN application online through the following process-

Step 1- Log on to www.incometaxindiaefiling.gov.in and click “Know Your TAN “ option available on the portal.
Step 2- Select ‘Name’ under the ‘TAN Search’ option and click ‘Category of Deductor’ and further select ‘State’ and fill name & mobile number details of the applicant concerned and Click “Continue”.
Step 3- Provide the One Time Password (OTP) sent on the registered mobile number in the corresponding screen and click “validate”.
Step 4- On validation, you will be able to view the status of the TAN application through details displayed on screen.

Why you Choose Legalmart

Therefore, the process of TAN registration is simple, quick and efficient process that is mandatory to be obtained by any eligible business entity including a sole proprietor. It is not only beneficial to keep a record of tax deductions but also personal information details. Though, the Income Tax Department has allowed both online as well as offline procedure for application, the online method is more convenient and preferred by most applicants.

We at Legalmart are committed to provide expert level assistance with our professional knowledge and years of experience in TAN registration, TDS payments and TDS returns filling from time to time. Further, we offer to provide following services in case you intend to apply for professional tax registration-

Preparation Of Application & Collection Of Documents

We understand that being a business owner or an employer is not an easy task and without proper knowledge legal formalities could be hectic to perform on your own. Therefore, we at Legalmart our professional experts help to go through the process of registration, collect necessary documents and prepare your application ready to be submitted to the portal.

End to End Assistance In Registration Process

Once documents are collected, our professional experts will fill and submit application for approval with the concerned Income Tax department. After which authorities will verify form and on being satisfied, issue TAN registration certificate within a period of seven days from the date of submission of application. We are also open to 24*7 customer assistance or for entertaining any requisite queries about the process.

TDS Payments and Returns

We at Legalmart also hold expertise in undertaking compliances related to TDS tax submission and filling TDS returns in a simple, quick and efficient manner at standard charges.l