TAN Application

TAN Application

TAN Application in India: Complete Guide for 2025
Starting a business or managing compliance in India involves several registrations, and one of the most important among them is TAN — Tax Deduction and Collection Account Number. Whether you're an employer, business owner, or government deductor, understanding how to apply for TAN and its legal significance is essential.
This blog explains what TAN is, how to apply, who needs it, documents required, and answers common questions like validity, online application process, and whether GST is mandatory for TAN.

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📌 What is TAN?
TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department of India. It is mandatory for all entities responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961.
For example, if your company deducts TDS while making salary payments, contractor payments, rent, or professional fees, you must quote your TAN in all TDS returns and challans.

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✅ Who Needs to Apply for TAN?
TAN is compulsory for:
•    Companies and firms deducting TDS
•    Employers paying salaries above the TDS threshold
•    Individuals deducting TDS on property transactions
•    Government departments collecting TCS
•    Freelancers or consultants making TDS-deductible payments
📌 Note: If you are only paying GST and not deducting any TDS/TCS, you don’t need a TAN.

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📄 What Happens If You Don’t Have a TAN?
Failure to apply for TAN or quoting an invalid TAN in TDS returns can lead to:
•    A penalty of ₹10,000 under Section 272BB
•    Non-processing of TDS returns
•    Rejection of Form 26Q, 27Q, etc.
•    Delays in issuing Form 16 or 16A to employees/vendors
✅ Therefore, TAN is not optional if you deduct TDS — it’s a legal necessity.

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📝 Documents Required for TAN Application
For applying TAN, the documentation is minimal. Here’s what is required:
For Businesses/Companies:
•    Incorporation Certificate or Registration Certificate
•    PAN of the entity
•    Address proof (electricity bill, lease agreement, etc.)
•    Authorized signatory ID proof and photograph
For Individuals:
•    PAN card
•    Aadhaar card or passport for ID and address proof
•    Passport-size photograph
📌 Tip: The entity must have a valid PAN before applying for TAN.

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🖥️ Can You Apply for TAN Online?
Yes, you can easily apply for TAN online through NSDL (Protean) or the TIN-NSDL website.
Steps for Online Application:
1.    Visit https://www.tin-nsdl.com
2.    Click on ‘Apply Online for TAN’
3.    Fill Form 49B with accurate details
4.    Upload documents and pay the application fee
5.    Submit the form and take a printout
6.    Send the signed acknowledgment to the NSDL office by post
💵 Application Fee:
•    ₹65 (including GST) for online TAN application
Once processed, TAN is usually issued within 7–10 working days and sent via post.

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📆 What is the Validity of TAN?
TAN is valid for a lifetime, unless:
•    The entity is closed or wound up
•    Voluntarily surrendered by the applicant
•    The Income Tax Department cancels it due to non-compliance
There is no need to renew TAN periodically — it remains active as long as the entity complies with TDS rules.

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❓ Is GST Mandatory to Apply for TAN?
No, GST registration is not mandatory for obtaining a TAN. GST and TAN serve different purposes:
•    TAN: Mandatory for deducting and depositing TDS/TCS
•    GSTIN: Mandatory if your turnover exceeds GST threshold (₹20 lakh for services, ₹40 lakh for goods)
✅ You can apply for TAN even if you are not registered under GST.

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🏁 Final Words
TAN is a critical compliance requirement for anyone deducting or collecting tax at source in India. Applying for TAN is a simple process, but failing to do so can result in heavy penalties and delayed filings.
Whether you’re a startup, freelancer, firm, or government agency, if you deduct TDS or collect TCS, TAN is a must.