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What is TAN Registration?

In India, Tax Deduction and Collection Account Number (TAN) is required by individuals and businesses who are responsible for deducting or collecting tax at source (TDS/TCS). This includes employers, contractors, banks, and financial institutions that make payments subject to tax deductions. If you fall into any of these categories, obtaining a TAN is mandatory to ensure compliance with the Income Tax Act, 1961. Whether you are an employer withholding tax from employee salaries or a business deducting tax on payments to vendors, TAN is a vital tool to manage your tax obligations.

A Tax Deduction and Collection Account Number (TAN) is a unique 10-character alphanumeric code issued by the Income Tax Department of India. It serves as an identification number for individuals or entities who deduct or collect tax at source, ensuring that the tax deductions are tracked and deposited with the government in an organized manner. TAN is required for filing TDS/TCS returns, making tax payments, and issuing TDS certificates. Without a valid TAN, you cannot comply with your tax responsibilities, and the payments made for TDS cannot be deposited with the government. The TAN simplifies the entire tax deduction process and makes it easier for the authorities to track and verify tax compliance across businesses and individuals.

The process to obtain a TAN is simple and can be done online or offline through the designated agencies authorized by the Income Tax Department.

 After submitting the required details and documents, the applicant receives the TAN, which must be used for all future tax-related transactions.

Key Features of TAN

  • Unique Identifier

    TAN is a unique 10-character alphanumeric code issued by the Income Tax Department. This unique identifier is assigned to entities or individuals responsible for deducting or collecting tax at source.

  • Mandatory for TDS/TCS

    TAN is mandatory for individuals or businesses involved in deducting or collecting tax at source (TDS/TCS). Without a valid TAN, you cannot deposit TDS/TCS with the government or file TDS returns.

  • Required for Tax Filings

    TAN is essential for filing TDS/TCS returns and for making payments to the government. It ensures the proper tracking of taxes deducted or collected by the authorities.

  • Helps in Compliance

    It ensures compliance with the provisions of the Income Tax Act, 1961, and helps maintain transparency in the tax collection process. It allows the Income Tax Department to track and verify the correct amount of tax collected and deducted.

  • Prevents Tax Evasion

    TAN aids in reducing tax evasion by linking TDS and TCS payments to a unique identifier. It ensures that taxes are deposited properly, helping the government monitor tax collections and maintain financial integrity.

  • Required for TDS Certificates

    Entities that deduct TDS must issue TDS certificates to the payee. TAN is required to properly issue these certificates, which are used by individuals and businesses to claim tax credit.

  • Non-transferable

    TAN is issued to a specific individual, business, or organization, and it cannot be transferred to another person or entity. It remains valid for the lifetime of the entity or individual to whom it is issued.

  • Used in Tax Records

    : It is used in various tax documents, including challans, TDS returns, and TDS certificates, helping to link all tax-related transactions to the correct entity for proper record-keeping.

  • Applicable for Various Entities

    TAN is required by a wide range of entities, including employers, contractors, professionals, banks, and financial institutions that are involved in TDS/TCS activities. It applies to both individuals and businesses. 10. Helps in Efficient Tax Management: TAN simplifies the tax management process

  • Helps in Efficient Tax Management

    TAN simplifies the tax management process by ensuring that every TDS or TCS deduction is linked to a specific entity or individual, streamlining tax reporting and compliance for both taxpayers and the authorities.

Required Documents for TAN Application

To complete your TAN application, the following documents are required:

To complete your TAN application

View the documents required for the directors.

  • Legal Document(like incorporation certificate, etc)
  • Passport Size Photograph
  • Proof of Address for the Registered Office
  • Company’s PAN Card

Our Pricing Plans

Choose the plan that best fits for you. We have three major plans to offer.

Starter

₹499+ Govt Fees
  • TAN Application
Choose Plan

Growth

₹999+ Govt Fees
  • TAN Application
  • One Quarter TDS return(upto 25 transactions)
  • Form 24Q, 26Q and 27Q (as applicable)
  • Issue form 16A certificate for 2 employees
Choose Plan

Elite

₹5999+ Govt Fees
  • TAN Application
  • One year Quarterly TDS return(upto 50 transactions per return)
  • Form 24Q, 26Q and 27Q (as applicable)
  • Issue form 16A certificate for 5 employees
Choose Plan

Govt fees and courier charges Rs. 300

Why Choose eTaxcart for TAN Registration?

Simple and Efficient Process

We streamline the TAN registration process, making it quick and hassle-free so you can focus on what matters most—growing your business.

Affordable Pricing

: Our services are competitively priced, providing exceptional value for your investment in obtaining a Tax Deduction and Collection Account Number (TAN).

Expert Assistance

Our team of professionals will guide you through every step of the registration, ensuring that the entire process is smooth and compliant with all regulations.

Frequently Asked Questions

Here are the answers of the questions we received frequently.

Who needs to apply for a TAN?

Any person or entity that is required to deduct or collect tax at source needs a TAN. This includes employers, businesses, professionals, and government departments that make payments subject to tax deductions or collections.

Is TAN the same as PAN?

No, TAN and PAN are different. PAN is used for individual tax purposes and is required for filing personal income tax returns, while TAN is used for deducting and collecting taxes at source for businesses or entities.

Do I need to apply for a TAN if I don’t deduct any taxes?

If you are not involved in any tax deduction or collection at source, then you do not need to apply for a TAN. TAN is only needed for individuals or businesses involved in TDS or TCS activities.

Can I make changes to my TAN after it is issued?

Yes, you can request corrections or changes to your TAN details if there are any mistakes in the information submitted. This includes updating the applicant’s name, address, or business details. The correction process involves submitting a request to the Income Tax Department.

Why should I choose eTaxcart for my TAN application?

eTaxcart makes the process of applying for TAN hassle-free. Our experts guide you through every step, ensuring all the necessary details are filled out correctly. We handle the entire application process for you, ensuring that your TAN is processed smoothly and quickly.

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