TAN Registration Process in India: Advantages & Penalties

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We all know how critical it is to obtain a TAN before engaging in any form of transaction or business. In order to deduct taxes at source (TDS) from certain payments, such as rent, salary, and payments to contractors and subcontractors, a TAN number is required. In this article, you will understand the online Tan Registration and TAN Registration Process in India.

What is TAN Registration?

The Tax Deduction Account Number or Tax Collection Account Number is a 10-digit alpha-numeric number.

The Income Tax Department issues TAN Registration Number.  It begins with four alphabets and five numbers, then one alphabet.

Section 203A of the Income Tax Act of 1961 demands the possession of a TAN number by every entity that collects or deducts tax at source (TCS/TDS).

If you don’t cite the TAN in TDS Return Filing, payments, challans, and certificates, you might face a fine.

So, you need to get an online TAN Registration if you wish to start a business in India.

Advantages of TAN Registration

  • Filing one’s TDS returns with TAN automatically populates the recipient’s address and PIN number according to I-T(Income Tax Department) guidelines, making taxation situations far more transparent.
  • When TDS is filed using TAN, the status of booking is logged, allowing the deductor to monitor whether or not his or her returns match the TDS statement that has already been filed by him.
  • Different branches of the same company might apply for TANs for their own specific divisions or departments.
  • Aside from producing TDS/TCS invoices and payment challans, TAN might well be utilized to file TDS returns.
  • The taxpayer can also use this TDS certificate as proof of tax paid in any form of dispute.
  • All tax paperwork must include the TAN number.
  • When someone forgets their TAN number, they can find it by selecting the “Know your TAN” option on the NSDL website.
  • Application status may be followed using the acknowledgment number once it has been submitted successfully.
  • As long as you have the TAN number, you’ll be able to use it for a lifetime.
  • In the end, TAN is used to deduct things like salaries, interests, and dividends.

Stepwise procedure for online Tan Registration

Stepwise procedure for online Tan Registration

  • Visit the NSDL Website
  • In the drop-down menu for “Services,” choose “TAN.”
  • To begin the application process, click ‘Apply Online.’
  • When you arrive at the new page, select a deductors category from the drop-down menu and click on ‘Select’
  • As a result, you’re taken to Form 49B.
  • Fill in the necessary details and click the ‘Submit’ button at the bottom of the form.

After completing all these steps, you will get an acknowledgment and use it to track the status of your application. Moreover, The NSDL office must be notified after an allocation number has been obtained.

What is the TAN Registration Process in India?

There are two ways to register your TAN i.e. online and offline. The complete TAN Registration process in India for both the ways online and offline is as follows.

tasks_2021_2xOffline TAN Registration Process in India

The offline mode requires that all users download Form 49B. In order to receive a Tax Collection and Deduction Account Number, you must fill out an application and submit it to one of the NSDL TIN Facilitation Centers. This form is available for download on the official website, as well as in paper copy at the local NSDL TIN Facilitation Center.

tasks_2021_2xOnline TAN Registration Process in India

To apply for TAN allocation in an online way, all applicants must do is go to the official NSDL TIN website and download the application form. Once you’ve downloaded an application, make sure you fill it out completely and accurately. Everyone is required to provide a home address and email address while registering.  Furthermore, A PAN Registration number must be included in an application. Even if a tax collector or deductor account number has an outdated layout, a PAN number is still necessary for identification. Hence, you should also get an online PAN Registration while applying for online TAN Registration.

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Penalties for TAN non-compliance

  • If a corporation fails to cite the Tax Deduction and Collection Account Number (TAN) on papers where TAN is needed, they would be fined Rs 10,000.
  • There is a Rs 10,000 fine under Section 272BB of the Income Tax Act for companies that give the wrong TAN number to the tax authorities.


The above-mentioned are the steps for the TAN Registration Process in India. It’s best to get your tan registration online and through the assistance of experts. As a result, it will save your time, money, and energy and provide you with the accurate TAN quickly.

The Difference between PAN, TAN and TIN

Moreover, If you want any other guidance relating to TAN Registration, please feel free to talk to our business advisors at 8881-069-069.

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