What is a TAN Allotment Letter?
- Dipali Waghmode
- Apr 11
- 6 min read
All individuals responsible for tax collection or deduction must get a Tax Deduction and Collection Account Number (TAN), a 10-digit alphanumeric number. On all TDS returns, the Tax Deduction Account Number (TAN) assigned by the Income Tax Department (ITD) must be quoted by Section 203A of the Income Tax Act, 1961. The Income Tax Department has changed the TAN's structure throughout the past few years. It is a distinct alphanumeric code consisting of ten digits. As a result, all current TAN holders have received TAN in this updated format. ITD has now added a search function to its website (www.incometaxindia.gov.in) to help deductors locate their new TAN. Deductors may identify the new TAN by using this feature to search for their name and previous TAN. They are encouraged to locate the updated TAN on this website before its incorporation into their e-TDS return file to prevent any inconvenience while providing an e-TDS return.
Table of Content
What is the TAN Allotment Letter
Your TAN number will be sent to you by NSDL or mailed to the address you provided on your application. This is done via a TAN allotment letter that applicants may subsequently submit as proof of TAN as and when required. Those who do not have it can submit a printout of their TAN details from the Income tax official website.
TAN Application and Allotment
Businesses can apply for TAN online or offline using the following procedures:
Offline Application for Allotment of TAN
To apply for TAN offline, firms must do the following:
Download Form 49B: The entity must download Form 49B from the IRS website.
Complete the form: The candidate must complete the form with all the necessary information. The input must be in black ink and block letters.
Submit the form: The entity must turn in the completed form together with the necessary paperwork at any TIN Facilitation Center.
Cost Payment: The organization must pay the processing cost when submitting the form.
Recognition: Upon submitting the form, the entity will be sent a confirmation. Using this, the entity can monitor the TAN application's status.
Online Application for Allotment of TAN
The following steps must be followed to apply for TAN allotment online:
Form 49B: You can go to the NSDL website and fill out Form 49B online to apply for the TAN. Provide your name, address, and any further information about a tax deduction or collection.
Acknowledgment: After submitting the form, you will be assigned an acknowledgment number. After printing it, give the acknowledgment number to the Pune NSDL offices.
Fee Payment: You can use a demand draft or check to pay the required fees online.
TAN Information: After confirming the applicant's information, the Income Tax Department will email or mail the TAN number to the registered address.
The Income Tax Department distributes TANs based on applications made to Protean-managed TIN Facilitation Centers (TIN-FC). In all future contact about TDS/TCS, Protean will notify the TAN, which is then specified.
Who Should Apply for TAN?
The Income Tax Act of 1961 requires organizations to deduct tax at source (TDS) or collect tax at source (TCS) to apply for TAN since it is obligatory to quote TAN on all TDS or TCS filings. The individual making the payment is in charge of deducting the tax under the TDS system and collecting taxes at the source of income. On the other hand, TCS is the tax collected at the point of sale by the seller from the customer of products or services. Therefore, TAN is available to individuals, companies, organizations, and government bodies. If a TAN fails to appear, fines and legal action may follow.
How To Know Your TAN?
You can immediately obtain your TAN data by entering your name or TAN. Furthermore, you can retrieve it appropriately if you have forgotten TAN. The detailed instructions for finding your TAN number are as follows:
Step 1: After logging in to the official Income Tax e-Filing website, click Know TAN Details.
Step 2: Below the 'TAN Search' option, you will see 'TAN' or 'Name'
Step 3: Choose "Name" or "TAN."
Step 4: If you make a name-based decision, choose "Category of Deductor" and state, then type the deductor's name. Click "Continue" after entering your registered mobile number.
If you decide to use the TAN, choose "Category of Deductor," then input the deductor's TAN. After entering your registered mobile number, select "Continue."
Step 5: Your registered cellphone number will receive an OTP.
Step 6: Enter the OTP and select "Validate." The screen will then display the information about your TAN.
Conclusion
You must obtain a TAN number to file TCS, TDS, or any other IT returns. Failure to include the TAN number on IT returns might result in a penalty of Rs. 10,000. Therefore, you should apply for your Tax Deduction and Collection Account Number instantly. This article offers actionable insight into the process of TAN allotment along with a complete overview of the TAN allotment letter for taxpayers.
FAQ
Q1. How do I know my TAN allotment?
The applicant can check the status of their application by calling the TIN Call Center at 020–2721 8080. You can also check the status of the TAN application by texting NSDLTAN to 57575.
Q2. What is TAN used for?
Deduction or collection of taxes at the source is the function of the tax deduction and collection account number, or TAN. For people or businesses that the government has mandated to deduct or collect taxes, obtaining a TAN is mandatory under section 203A of the Income Tax Act.
Q3. Where can you get the physical application forms for a TAN application?
Candidates can download the application forms for free from our website or pick them up from TIN-FCs or any other merchants that sell them.
Q4. What are the processing fees for TAN applications?
The new TAN and the change request have a processing charge of Rs. 77, which includes GST.
Q5. How can I get a TAN number in one day?
The Ministry of Corporate Affairs (MCA) and the Central Board of Direct Taxes (CBDT) have partnered to provide PAN and TAN in one go. All you have to do is use the corporate affairs ministry online to submit a standard application form called SPICe+ (INC 32). As a result, when you organize a business or limited liability partnership, automatic TAN allocation occurs.
Q6. How can I know my tan allotment date?
The income tax department's TAN allotment letter or an inquiry from the department's customer service might provide applicants with their TAN allotment date.
Q7. What is the password for TAN certificate PDF?
According to the email you received when your TAN account was activated, your user ID gets submitted to the email address you registered with at TIN in a password-protected PDF file. Your twelve-digit, alphanumeric TAN registration number is the password to access that PDF file.
Q8. Is TAN mandatory for everyone?
TAN is only necessary for people or organizations responsible for withholding taxes or collecting them at the source.
Q9. How will my TAN number be sent to me?
Your TAN number will be sent to you by NSDL or will be mailed to the address you provided on your application.
Q10. Why is a TAN Allotment Letter important for businesses?
It is mandatory for entities deducting TDS/TCS, as payments without a TAN are subject to penalties under the Income Tax Act.
Q11. How can I obtain a TAN Allotment Letter?
Apply through NSDL or UTIITSL with Form 49B, and upon approval, you’ll receive the allotment letter by post or email.
Q12. Can I use a PAN instead of a TAN for TDS payments?
No, PAN is for tax identification, while TAN is specifically for TDS deductions. Using PAN for TDS can result in non-compliance penalties.
Q13. How long does it take to receive a TAN Allotment Letter?
Processing takes about 10–15 working days after submitting Form 49B, subject to verification by the IT department.
Q14. What should I do if I lose my TAN Allotment Letter?
You can retrieve TAN details from the Income Tax Department’s website or request a duplicate from NSDL/UTIITSL.
Q15. Is TAN mandatory for salaried individuals?
No, salaried individuals do not require a TAN unless they are responsible for deducting TDS on payments like rent or consultancy fees.
Q16. Can a business operate without a TAN?
No, any entity deducting TDS must have a TAN. Non-compliance attracts a penalty of ₹10,000 under Section 272BB.
Q17. Is TAN applicable for freelancers or self-employed individuals?
Only if they deduct TDS on contractor, rent, or professional payments. Otherwise, PAN suffices for tax filings.
Q18. How can I verify the authenticity of a TAN Allotment Letter?
Check the status using the Income Tax Department’s online TAN verification tool by entering the 10-digit TAN number.
Q19. Does a TAN expire, or is renewal required?
TAN is permanent and does not require renewal, but if an entity changes its structure or address, it must update the details with NSDL.
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