TAN Application

TAN is designed to provide an identity to a person who is required to deduct/collect tax
at source by the Income-tax Act. Our experts at ICI can help you to get your TAN
through our easy to follow virtual processes

TAN application

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Table Of Contents

What is TAN?

Tax Deduction and Collection Account Number- a 10-digit alphanumeric number issued by the Income Tax Department of India to the person who is required to deduct TDS/TCS while making payment such as salary, commission, rent, contractual expenses, professional fees, etc.

Who can apply for TAN?

Any person who makes payments such as salary, rent, commission, contractual expenses, etc. and is liable to deduct TDS/TCS as per provisions of Income Tax Act, 1961, shall apply for TAN. This may include Individuals, HUF, Limited liability partnership, Partnership firms, Company, Associates of firms, Local authority or Trust.

Note: The provision for obtaining TAN does not apply to the person who is required to deduct TDS as per section 194-IA (i.e. sale proceeds received by the individual in respect of building or land.

Purpose of TAN

Documents required

How can we help you?


a. Is a separate TAN required for TCS?

No, a TAN allotted to person serves the requirement of both, i.e. TDS and TCS. Hence a separate TAN for TCS is not required by a person.

b. Who allots TAN?

The Income Tax Department of India is solely responsible for allotting TAN to companies or employers based on the application submitted to Tax Information Network or at TIN Facilitation Centres. These Centres are managed by National Securities Depository Limited (NSDL).

c. Is it to wrong to have PAN but not TAN?

The purpose of PAN and TAN are entirely different, and hence they cannot be
used interchangeably. Further, a PAN holder is not required to obtain TAN till the time he is liable to deduct TDS/TCS (other than under section 194-IA), however, a person needs to obtain a PAN if he wants to apply for TAN.

d. If my company has several branches/divisions, do I require to obtain separate TANs for all of them?

Yes. You will be required to apply for TANs for all branches/divisions if the person/authority responsible for collecting TDS/TCS is different. Details such as the name of the division/branch, location, designation of the accountable person deducting TDS/TCS, etc. should be disclosed in the forms when applying for TAN.

e. Can a taxpayer hold more than one TAN?

It is illegal to possess or use more than one TAN. Different branches/ divisions of an entity may, however, have separate TAN. However, different branches/divisions of a business entity may have their separate TAN.
In case, more than one TAN has been allotted, TAN that has been used regularly shall be used, and other TAN(s) shall immediately be surrendered for cancellation.

f. Is it necessary to have a different TAN if a deductor deducts tax from different types of payments like salary, interest, dividend etc?

No, a TAN allotted can be used for any deductions/collections of tax.

g. Still have doubts?

Speak to our experts who shall solve all your doubts.
Call us at  +91 7738 066 334  or Mail us at info@indiacompanyincorporation.com

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