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All About TAN (Tax Deduction Account Number)

What is TAN?

TAN is Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric number. This number has to be attained by people who are accountable for “Deducting tax at source or Collecting tax at source”. Under Section 203A of the Income tax Act 1961 of the TAN Number has to be quoted on all TDS retunes filed.

TAN Structure

The structure of this 10-digit unique identifier has undergone several revisions over the years. The current structure has 4 alphabets at the start, followed by 5 numerals and ends with an alphabet again.

The identifier has several details encoded using this combination of letters and numerals. These details are broken down as mentioned below –

  • The TAN number’s first 3 alphabets represent the holder’s jurisdiction code.
  • The 4th alphabet is the initial of the holder’s name. It must be remembered that a TAN number can be allotted to an individual or an enterprise, like a company or a firm, of any sort. In such an instance, the company or organisation is treated as an individual.
  • The next 5 numbers are exclusive identifying numerals with no added significance. .
  • Finally, the last alphabet acts merely as a unique identifying entity.

The structure can be better understood with example, albeit fictional ones.

When a certain Delhi-based firm, XYZ Pvt Ltd, is allotted a TAN, it may look like this – DELX12345M

  • DEL’ indicates that any legal issues will be dealt with only by competent jurisdictional authorities within the city of New Delhi.
  • X is the first character of the company’s registered name
  • The next 5 numerals and the last letter serve as a unique ID.

Who can Apply for TAN?

If any person liable to deduct TDS or collect TCS on any payment or receipts, they should have TAN. For eg. if you are paying a salary or a commission to anyone, you should have TAN.

This includes central or state government or local authority. It can be a statutory or an autonomous body, a company, a branch or a division of a company, individual or a Hindu Undivided Family, sole proprietor, firms, associations of persons, or trusts.

How to Apply for TAN?

There are two ways to go about it. A person can apply for TAN through an offline application or through an online application.

Offline Application of Allotment of TAN

If an applicant wishes to apply for TAN through the offline method, then he has to fill up the Form 49B in duplicate and submit it to any TIN (Tax Information Network) Facilitation Centres. If the applicant is a company that is registered under the Companies Act 2013, then the application is to be made in Form No INC-7, this is specified in the Act of incorporation of the company in the sub-section (1) of Section 7.

After submitting the application, you must pay the processing fee by cash at TIN-FC counter. You can either pay the fee in the form or cash, cheque or demand draft.

Download Form 49B

Online Application of Allotment of TAN

If an applicant, both individual and the company wishes to apply through the online mode, by following process:

  • visit the NSDL-TIN website  https://tin.tin.nsdl.com/tan/index.html
  • After you have filled up the application, you need to make the fee payment of Rs.55 plus GST that is applicable.
  • The fee for processing TAN application is Rs.65 (Rs.55 + 18% GST). You can use the credit card or debit card or net banking to make this payment.
  • On making this payment, you will receive the 14-digit acknowledgement number, status of the application, name of the applicant, contact details, payment details and a space for signature.
  • This acknowledgement needs to be printed out and duly signed and sent to NSDL at the given NSDL address during submission. This acknowledgement should reach the NSDL within 15 days of online submission.

Applicant shall save and print the acknowledgment and send it to NSDL alongwith requisite documents at

NSDL e-Governance Infrastructure Limited,

5th floor, Mantri Sterling,

Plot No. 341, Survey No. 997/8,

Model Colony,

Near Deep Bungalow Chowk,

Pune – 411016

The envelope should be superscribed as ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’)

Payment of TAN Application Fee

Those who pay the processing fee through net banking, credit card or debit card will be issued a TAN within 5 working days. TAN will be intimated by e-mail and the TAN allotment letter will be dispatched on receipt of the signed acknowledgement.

The applicant must bear in mind that the TAN Application can be made on Form 49B only, you cannot type out the application request on a plain piece of paper. The application can however be typed on Form 49B, the typing should be in capital letters.

Documents Required for TAN Application

While submitting your application for the allotment of TAN, you need not submit any documents. But if you are applying online, you need to sign the acknowledgment and forward it to NSDL address that will be provided to you.

Fee for TAN Number

The processing fee for the both the applications (new TAN and change request) is 65 (including Goods and Service Tax).

Use of TAN Number

  • TAN is used for deductions like salary, interest, dividend, etc.
  • It can be used for returns, challans and certificates.
  • It auto-captures complete address of the person who deducts tax on behalf of the IT department. It also captures the Postal Index Number recorded with Income Tax Department.
  • If a person has more than one TAN, it is illegal. But different branches or divisions of a collector can apply for separate TAN for each branch or division.

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