TAN Registration Services

Q: Who is required to obtain TAN?

Every person required to deduct TDS or collect TCS — companies/LLPs (via SPICe+), firms paying salary/rent/fees above thresholds, Section 44AB audit-category individuals and HUFs. Not required for Section 194-IB rent or Section 194-IA property purchase TDS.

Q: What is the penalty for not having TAN or not quoting TAN?

₹10,000 penalty under Section 272BB for failing to apply for TAN, failing to quote TAN, or quoting wrong TAN on TDS/TCS returns, challans, and certificates.

Q: What is TRACES and why is it important for TDS compliance?

TRACES at traces.gov.in is the income tax portal for TDS compliance. Required for downloading Form 16/16A, viewing TDS defaults and demands, filing correction statements, and accessing TAN-wise deduction details. Essential registration for every TAN holder.

Q: What is the difference between TDS and TCS?

TDS is deducted by the payer on specified payments (salary, rent, fees, interest). TCS is collected by the seller of specified goods (scrap, motor vehicles above ₹10 lakh, foreign remittances). Both require TAN for depositing and filing quarterly returns.

Q: What are the consequences of late TDS deposit and late TDS return filing?

Late deposit: 1.5% per month interest under Section 201(1A) from deduction date to payment date. Late return: ₹200 per day fee under Section 234E capped at TDS amount. Additional penalty up to ₹1 lakh under Section 271H. Persistent default risks prosecution under Section 276B.

Tax Deduction and Collection Account Number — Mandatory for All Entities Required to Deduct TDS or Collect TCS

A Tax Deduction and Collection Account Number (TAN) is a unique 10-digit alphanumeric number issued by the Income Tax Department to every person required to deduct tax at source (TDS) or collect tax at source (TCS) under the Income Tax Act. TAN must be quoted on all TDS/TCS returns, challans, and certificates — without TAN, it is not possible to deposit TDS with the government or file quarterly TDS returns.

TAN is distinct from PAN — while PAN is required for tax payment and return filing as a taxpayer, TAN is required specifically for TDS/TCS compliance as a deductor or collector. Companies receive TAN automatically through the SPICe+ incorporation process. Others must apply separately in Form 49B. Our TAN registration service handles new applications, corrections, and TDS compliance setup. This connects with our PAN registration and income tax services.

Our TAN Registration Services

TAN Application (Form 49B)

Filing Form 49B on the NSDL/UTIITSL portal for allotment of a new TAN — for businesses, firms, trusts, and individuals who are required to deduct TDS on salary, rent, professional fees, or other payments.

TAN for Companies (SPICe+)

Confirming TAN allotment through the SPICe+ incorporation process for newly incorporated companies — TAN is automatically allotted as part of the integrated incorporation filing.

TAN Correction & Update

Filing correction requests for errors in existing TAN records — name, address, or category corrections — to ensure TAN details match the deductor's current registration documents.

TDS Compliance Setup

Setting up the complete TDS compliance framework after TAN allotment — TRACES registration, challan deposit procedures, Form 16/16A generation, and quarterly return filing calendar.

TRACES Registration

Registering the deductor on the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal — required for downloading Form 16, Form 16A, and Form 26AS data.

TDS Return Filing Setup

Setting up quarterly TDS return filing — Forms 24Q (salary), 26Q (non-salary), 27Q (non-residents), and 27EQ (TCS) — including Return Preparation Utility (RPU) training and validation procedures.

Key Facts About TAN

TAN is mandatory for every person required to deduct TDS or collect TCS under the Income Tax Act
Companies and LLPs receive TAN automatically through SPICe+ at the time of incorporation
TAN must be quoted on all TDS/TCS challans, returns, and certificates — failure attracts ₹10,000 penalty
TDS returns must be filed quarterly — by 31 July, 31 October, 31 January, and 31 May
TDS must be deposited by the 7th of the following month (30 April for March deductions)
Late TDS deposit attracts interest at 1.5% per month from the date of deduction to the date of payment
Late filing of TDS returns attracts a fee of ₹200 per day under Section 234E

Frequently Asked Questions

Who is required to obtain TAN?

Every person who is required to deduct tax at source or collect tax at source under the Income Tax Act must obtain TAN. This includes: all companies and LLPs (automatically through SPICe+); partnership firms paying salaries, rent, professional fees, or interest above TDS thresholds; individuals and HUFs whose accounts are audited under Section 44AB; and any person responsible for paying salaries, contractor payments, or other TDS-liable payments. TAN is not required for individuals paying rent (Section 194-IB) or for property purchase TDS (Section 194-IA) — these use the deductor's PAN instead.

What is the penalty for not having TAN or not quoting TAN?

Under Section 272BB, a person who fails to apply for TAN, or who fails to quote TAN on TDS/TCS returns, challans, and certificates, is liable to a penalty of ₹10,000. Additionally, a person who quotes a wrong TAN or a TAN belonging to another person is also liable to the same penalty. The penalty is in addition to any interest or penalties for late TDS deposit or late return filing.

What is TRACES and why is it important for TDS compliance?

TRACES (TDS Reconciliation Analysis and Correction Enabling System) is the income tax department's online portal for TDS compliance at traces.gov.in. After obtaining TAN, the deductor must register on TRACES to: download consolidated TDS statements; generate and download Form 16 (for salary TDS) and Form 16A (for non-salary TDS); view TDS defaults and demand statements; file correction statements; and access TAN-wise deduction details. TRACES registration is essential for every TAN holder to fulfil their compliance obligations.

What is the difference between TDS and TCS?

TDS (Tax Deducted at Source) is deducted by the payer at the time of making certain payments — salary, rent, professional fees, interest, contractor payments, etc. The payer deducts and deposits TDS on behalf of the payee. TCS (Tax Collected at Source) is collected by the seller of specified goods at the time of receipt of payment from the buyer — applicable on sale of scrap, timber, forest produce, motor vehicles above ₹10 lakh, foreign remittances, and overseas tour packages. Both TDS and TCS require TAN for depositing and filing returns.

What are the consequences of late TDS deposit and late TDS return filing?

Late TDS deposit attracts interest under Section 201(1A) at 1.5% per month from the date of deduction to the date of actual deposit. Late filing of TDS quarterly returns attracts a mandatory fee under Section 234E of ₹200 per day for each day of delay (capped at the TDS amount for that return). Additionally, the deductor may face penalties under Section 271H of up to ₹1 lakh for late or incorrect returns. Persistent non-compliance can also result in prosecution under Section 276B.

Get Your TAN and TDS Compliance Right from Day One

TAN application, TRACES registration, TDS return setup, and ongoing quarterly compliance support.