Who Needs TAN?

   • Mandatory for: Any entity (individual, firm, company, LLP, trust, etc.) deducting TDS (e.g., on salary, rent, professional fees) or collecting TCS (e.g., on scrap sales, motor vehicle sales above ₹10 lakh).
   • Examples: 
             o Employers deducting TDS on salaries (Section 192).
             o Businesses paying contractors (Section 194C), professionals (Section 194J), or rent (Section 194I).
             o Sellers collecting TCS on high-value goods/services (Section 206C).
    • Exemptions: Individuals/HUFs not liable for tax audits (e.g., turnover below ₹1 crore for business or ₹50 lakh for professionals) may not need TAN for certain payments (e.g., Section 194C/194J), but TAN is still required for salary TDS.
     • Foreign Entities: Non-residents deducting TDS on payments to residents/non-residents (e.g., under Section 195) need TAN.

Failure to obtain TAN attracts a penalty of ₹10,000 under Section 272BB(1). Non-quoting of TAN in TDS/TCS returns or documents can lead to additional penalties.

Documents Required for TAN Registration

    •  For Individuals:  
             o PAN card.
             o Aadhaar card (mandatory for Indian residents; linked to PAN).
             o Address proof (e.g., utility bill, rent agreement).
    • For Firms/Companies/LLPs/Trusts: 
             o PAN of the entity.
             o Certificate of Incorporation/Partnership Deed/Trust Deed.
             o Address proof of principal place of business.
             o Details of authorized signatory (PAN, Aadhaar).
     • Optional: Digital Signature Certificate (DSC) for online filing (mandatory for companies).
     • No Additional Documents: Unlike earlier, no physical proofs are typically required for online applications unless specifically requested by NSDL.

Steps to Apply for TAN (Offline via TIN-FC)

    • Download Form 49B from tin-nsdl.com or collect from TIN-FC. 
    • Fill details (same as online).
    • Submit at nearest TIN-FC with ₹76.7 fee (cash/DD/cheque).
    • Receive acknowledgment and track status.
    • TAN issued in 7-15 days.

Find TIN-FCs via NSDL’s “Locate TIN-FC” tool.

Key Points and Tips

    • Mandatory PAN Linkage: Ensure PAN is linked with Aadhaar (deadline for linkage was June 30, 2023; inoperative PANs block TAN usage).
    • Single TAN per Entity: One TAN suffices for all branches/divisions of a company, but separate TANs are issued for distinct entities (e.g., firm vs. individual).
    • TDS/TCS Compliance: 
             o Deposit TDS/TCS by the 7th of the next month (e.g., October 7 for September deductions) using challan 281.
             o File quarterly returns: Form 24Q (salaries), 26Q (other payments), 27Q (non-resident payments), 27EQ (TCS).
    • Penalties: 
             o Non-obtaining TAN: ₹10,000 (Section 272BB).
             o Non-quoting TAN: ₹10,000 (Section 272BB).
             o Late TDS/TCS deposit: 1-1.5% per month interest (Sections 201(1A)/206C(7)).
             o Late returns: ₹200/day (Section 234E, max ₹5,000).
    • Recent Updates (2025): Online TAN applications are prioritized; NSDL portal integrates with e-Pay Tax for seamless payments. No major regulatory changes for AY 2025-26.
    • Third-Party Tools: Firms like ClearTax or IndiaFilings assist with TAN registration and TDS compliance (fees apply). Always verify on official portals.
    • Helpline: NSDL (020-27218080) or Income Tax (1800-103-0025, 8 AM–8 PM, Mon-Fri).
    • Avoid Scams: Use only tin-nsdl.com or incometax.gov.in. Ignore fake emails/pop-ups requesting TAN details.
    • For Non-Residents: Obtain TAN for TDS on payments to residents/non-residents (e.g., Form 15CA/CB for foreign remittances).