What is a TAN Card and How to Apply for it?

A TAN is important for all those people who deduct or collect tax at source. It is important to quote a TAN card for all the TDS/TCS returns. The user must pay a penalty of Rs 10,000 if he or she fails to apply for it or fails to comply with any of the provisions outlined in Section 203A of the Income Tax Act.

In this blog, we will go over everything there is to know about TAN cards and how to apply for them.

What is a TAN Card?

The Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric unique number issued to those required to collect and deduct tax under Section 203A of the Indian Income Tax Act 1961. A TAN card is an important document to be quoted for a TDS return.

What is the Importance of a TAN card?

A TAN card is a mandatory document to be quoted for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). TDS and TCS cannot be accepted by TIN facilitation centres without a TAN card.

It should be noted that if a TAN card is not provided, banks will not accept challans for TCS/TDS. If a person fails to apply for a TAN card or fails to quote it in any of the required documents, he or she will be fined Rs. 10,000.

Why is it Necessary to Apply for a TAN card?

It is mandatory for people who deduct or collect tax at the source to apply for a TAN card under the provisions of Section 203A of the Income Tax Act. Section 203A requires all TCS/TDS returns, TDS/TCS challans, and TDS/TCS certificates to be accompanied by a TAN card. According to the section, anyone who fails to comply with any of the provisions of the section or fails to apply for a TAN card must pay a fine of Rs. 10,000.

Who can Apply for a TAN Card?

A TAN card is mandatory for the following applicants- 

• Individuals who deduct or collect tax at source
• Company
• Hindu Undivided Family
• Association of Persons
• Firm
• Central Government/ State Government/ Autonomous Bodies/ Local authorities/ Statutory Bodies

What is the Structure of a TAN card?

A TAN card’s structure is made up of the following elements:

• A TAN card carries a unique 10-digit alphanumeric number. The first four characters of the number are letters, the next 5 characters are numerals and the rest of the last character is a letter again. Example- UTT75759P
• The first 3 characters of a TAN card represent the state or city where the TAN is issued
• The 4th character of the TAN card states the first initial of the deductor
• The next 5 characters are numerics
• The remaining last character is a letter

How to Apply for a TAN Card?

There are two ways to apply for a TAN card- Online and Offline. The next section of the blog will take you through the process to apply for a TAN card. 

How to Apply for a TAN Card Online?

Individuals, firms, associations, etc. can apply for a TAN card online by following the given steps-

• Visit the official website of NSDL-TIN
• Click on ‘TAN’ under ‘Services’
• Click on ‘Apply Online’ and select ‘New TAN’
• Read the guidelines and fill the Form 49B
• Click on ‘Submit’
• Upon submission, an acknowledgement screen will appear that contains the following-

1. A 14 digit acknowledgement number
2. Applicant’s name
3. Applicant’s status
4. Contact details
5. Payment details
6. Space of signature

• Get the printout of the acknowledgement slip and send it to NSDL along with the supporting documents to the following address- 

NSDL e-Governance Infrastructure Limited, 

5th Floor, Mantri Sterling

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

Model Colony, 

Near Deep Bungalow Chowk,

Pune- 411016

Note- 

• When sending the TAN acknowledgement slip, superscribe the envelope with ‘APPLICATION FOR TAN- Acknowledgement Number’ (Example- ‘APPLICATION TAN- 12345678910112’
• Both the acknowledgement slip and demand draft should be sent to the NSDL within 15 days from the date of the online application
• The application will be only processed on receipt of duly signed acknowledgement and realisation of payment

How to Apply for a TAN Card Offline?

An applicant needs to visit the official TIN facilitation centre of National Securities Depository Limited (NSDL) and connect with the concerned official to apply for a TAN card. 

How to Check the TAN Card Status?

Once the TAN application is submitted, an applicant can check the status of the TAN Card by following the given instructions- 

• Visit the official website of NSDL-TIN
• Select TAN from the ‘Services’
• Click on ‘Know Status of Your Application’
• Select the ‘Application Type’ and enter the ’14 digit acknowledgement number’
• Click on ‘Submit’
• The TAN card status will be shown on the screen

An applicant can also check the TAN card status through SMS in a given way- 

“NSDLTAN <space> Acknowledgement No and send it to 57575”

FAQs

What is the TAN application processing fee?

The TAN processing fee is Rs. 65 (Rs. 55 application charge + 18.00% Goods & Services Tax).

How can I make payment for the TAN application?

Payment can be made through- Demand Draft, Cheque, Debit Card/Credit Card/ Net Banking.

Who allots a TAN?

A TAN is allotted by the Income Tax Department of the country.

Can I apply for TAN online?

Yes, you can apply for a TAN card by visiting the official website of NSDL-TIN.

Can I quote a PAN in place of TAN?

Both PAN and TAN are different and thus, they cannot be quoted in place of each other.

Priyanka Juyal

Priyanka Juyal- a Writer with a curious mind & vision to create the best out of words. Other times, see her playing the guitar, sketching or narrating folk tales!