💳 TAN CARD – COMPLETE GUIDE

1️⃣ What is TAN?

TAN (Tax Deduction and Collection Account Number) is a unique 10-digit alphanumeric code issued by the Income Tax Department of India to entities responsible for:

• Deducting Tax at Source (TDS)

• Collecting Tax at Source (TCS)

Format: ABCD12345E

• First 4 letters: Entity name abbreviation

• Next 5 digits: Numeric

• Last character: Checksum letter

Purpose: Track TDS/TCS payments and reporting to the Income Tax Department.

2️⃣ Who Needs TAN?

TAN is mandatory for:

1. Employers deducting TDS on salary

2. Companies & firms deducting TDS on payments (contractors, rent, professional fees)

3. Trusts, societies, NGOs making TDS deductions

4. Banks & financial institutions collecting TCS on certain transactions

5. Any person / entity responsible for TDS/TCS deduction under Income Tax Act, 1961

Important: Even if no TDS/TCS is deducted in a year, TAN is still required to file TDS/TCS returns.

3️⃣ Legal Basis of TAN

• Section 203A of Income Tax Act, 1961: Mandatory TAN registration for deductors/collectors

• Section 203B: Requirement to quote TAN in TDS/TCS returns, challans, and certificates

• Penalty for Non-Compliance: Section 272B – ₹10,000 for failure to quote TAN

4️⃣ Uses of TAN

A. TDS Compliance

• TAN must be quoted in:

  • TDS payment challans (Challan 281)

  • TDS returns (Form 24Q, 26Q, 27Q, 27EQ)

  • TDS certificates (Form 16, 16A, 16B, 16C)

B. TCS Compliance

• TAN must be quoted in TCS collection forms and statements

C. Prevent Penalties

• Failure to quote TAN attracts ₹10,000 penalty per Section 272B

• Avoids processing delays in TDS/TCS returns

5️⃣ TAN vs PAN – Key Difference

6️⃣ TAN Application Process

A. Online Application

1. Go to NSDL TAN portal: https://www.tin-nsdl.com

2. Fill Form 49B for TAN application

3. Provide:

   • Name of deductor/collector

   • Address & contact details

   • Status (individual, company, firm, HUF, trust)

   • Documents: PAN of entity / authorized signatory

4. Submit form and acknowledgment number received

5. Receive TAN via post at registered address (usually 5–7 working days)

B. Offline Application

1. Download Form 49B from NSDL website

2. Fill form manually and attach proof documents

3. Submit at TAN facilitation center

4. Receive TAN by post

Fee: ₹65 (approx.)

7️⃣ Documents Required for TAN

8️⃣ TAN & TDS Filing

• TAN is mandatory for:

  • Depositing TDS/TCS (Challan 281)

  • Filing quarterly TDS/TCS returns (Forms 24Q, 26Q, 27Q, 27EQ)

• TAN ensures TDS/TCS is credited to correct deductor

9️⃣ TAN Correction / Update

Scenarios:

• Name correction of deductor

• Address change

• Change in category of deductor

Process:

1. Submit TAN correction request online/offline

2. Provide acknowledgment and supporting documents

3. Updated TAN details issued

🔟 TAN & Penalties

1️⃣1️⃣ FAQs About TAN

Q1: Can one person/entity have multiple TANs?
A1: No. One entity should have only one TAN.

Q2: Can PAN be used in place of TAN?
A2: No. TAN is separate and mandatory for TDS/TCS compliance.

Q3: How long does TAN processing take?
A3: Usually 5–7 working days after acknowledgment.

Q4: Is TAN needed for salary TDS?
A4: Yes, all deductors (companies/employers) must have TAN to deposit TDS and issue Form 16.

Q5: Can TAN be applied by foreigners?
A5: Yes, foreign companies or individuals deducting tax in India must apply for TAN.

1️⃣2️⃣ Advisory Draft – TAN Application & Compliance

To: [Client Name]
Date: __________

Subject: Advisory on TAN Application and TDS/TCS Compliance

Dear [Client Name],

This advisory is regarding Tax Deduction and Collection Account Number (TAN) requirements under the Income Tax Act, 1961.

Key Recommendations:

1. Apply for TAN immediately if your organization/entity deducts or collects TDS/TCS.

2. Quote TAN in all TDS/TCS challans, returns, and certificates.

3. Maintain TAN records securely for audit purposes.

4. Update TAN for name, address, or deductor category changes.

5. Avoid penalties by timely quoting TAN in all filings.

Failure to comply may result in ₹10,000 penalty per default and disallowance of TDS/TCS claims.

Warm regards,
[Consultant Name]
[Designation / Organization]

1️⃣3️⃣ Website-Specific Tips for TAN

• Use advisory language, do not promise penalty exemptions.

• Include NSDL TAN portal link: https://www.tin-nsdl.com

• Update content regularly with latest TDS/TCS rules and rates

• Emphasize TAN is mandatory for all deductors/collectors

💳 TAN CARD – COMPLETE GUIDE

1️⃣ What is TAN?

TAN (Tax Deduction and Collection Account Number) is a unique 10-digit alphanumeric code issued by the Income Tax Department of India to entities responsible for:

• Deducting Tax at Source (TDS)

• Collecting Tax at Source (TCS)

Format: ABCD12345E

• First 4 letters: Entity name abbreviation

• Next 5 digits: Numeric

• Last character: Checksum letter

Purpose: Track TDS/TCS payments and reporting to the Income Tax Department.

2️⃣ Who Needs TAN?

TAN is mandatory for:

1. Employers deducting TDS on salary

2. Companies & firms deducting TDS on payments (contractors, rent, professional fees)

3. Trusts, societies, NGOs making TDS deductions

4. Banks & financial institutions collecting TCS on certain transactions

5. Any person / entity responsible for TDS/TCS deduction under Income Tax Act, 1961

Important: Even if no TDS/TCS is deducted in a year, TAN is still required to file TDS/TCS returns.

3️⃣ Legal Basis of TAN

• Section 203A of Income Tax Act, 1961: Mandatory TAN registration for deductors/collectors

• Section 203B: Requirement to quote TAN in TDS/TCS returns, challans, and certificates

• Penalty for Non-Compliance: Section 272B – ₹10,000 for failure to quote TAN

4️⃣ Uses of TAN

A. TDS Compliance

• TAN must be quoted in:

  • TDS payment challans (Challan 281)

  • TDS returns (Form 24Q, 26Q, 27Q, 27EQ)

  • TDS certificates (Form 16, 16A, 16B, 16C)

B. TCS Compliance

• TAN must be quoted in TCS collection forms and statements

C. Prevent Penalties

• Failure to quote TAN attracts ₹10,000 penalty per Section 272B

• Avoids processing delays in TDS/TCS returns

5️⃣ TAN vs PAN – Key Difference

6️⃣ TAN Application Process

A. Online Application

1. Go to NSDL TAN portal: https://www.tin-nsdl.com

2. Fill Form 49B for TAN application

3. Provide:

   • Name of deductor/collector

   • Address & contact details

   • Status (individual, company, firm, HUF, trust)

   • Documents: PAN of entity / authorized signatory

4. Submit form and acknowledgment number received

5. Receive TAN via post at registered address (usually 5–7 working days)

B. Offline Application

1. Download Form 49B from NSDL website

2. Fill form manually and attach proof documents

3. Submit at TAN facilitation center

4. Receive TAN by post

Fee: ₹65 (approx.)

7️⃣ Documents Required for TAN

8️⃣ TAN & TDS Filing

• TAN is mandatory for:

  • Depositing TDS/TCS (Challan 281)

  • Filing quarterly TDS/TCS returns (Forms 24Q, 26Q, 27Q, 27EQ)

• TAN ensures TDS/TCS is credited to correct deductor

9️⃣ TAN Correction / Update

Scenarios:

• Name correction of deductor

• Address change

• Change in category of deductor

Process:

1. Submit TAN correction request online/offline

2. Provide acknowledgment and supporting documents

3. Updated TAN details issued

🔟 TAN & Penalties

1️⃣1️⃣ FAQs About TAN

Q1: Can one person/entity have multiple TANs?
A1: No. One entity should have only one TAN.

Q2: Can PAN be used in place of TAN?
A2: No. TAN is separate and mandatory for TDS/TCS compliance.

Q3: How long does TAN processing take?
A3: Usually 5–7 working days after acknowledgment.

Q4: Is TAN needed for salary TDS?
A4: Yes, all deductors (companies/employers) must have TAN to deposit TDS and issue Form 16.

Q5: Can TAN be applied by foreigners?
A5: Yes, foreign companies or individuals deducting tax in India must apply for TAN.

1️⃣2️⃣ Advisory Draft – TAN Application & Compliance

To: [Client Name]
Date: __________

Subject: Advisory on TAN Application and TDS/TCS Compliance

Dear [Client Name],

This advisory is regarding Tax Deduction and Collection Account Number (TAN) requirements under the Income Tax Act, 1961.

Key Recommendations:

1. Apply for TAN immediately if your organization/entity deducts or collects TDS/TCS.

2. Quote TAN in all TDS/TCS challans, returns, and certificates.

3. Maintain TAN records securely for audit purposes.

4. Update TAN for name, address, or deductor category changes.

5. Avoid penalties by timely quoting TAN in all filings.

Failure to comply may result in ₹10,000 penalty per default and disallowance of TDS/TCS claims.

Warm regards,
[Consultant Name]
[Designation / Organization]

1️⃣3️⃣ Website-Specific Tips for TAN

• Use advisory language, do not promise penalty exemptions.

• Include NSDL TAN portal link: https://www.tin-nsdl.com

• Update content regularly with latest TDS/TCS rules and rates

• Emphasize TAN is mandatory for all deductors/collectors