Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
In India, obtaining a Tax Deduction and Collection Account Number (TAN) is mandatory for businesses and entities responsible for deducting or collecting tax at source. This unique 10-digit alphanumeric number is issued by the Income Tax Department and must be quoted in all TDS/TCS returns, challans, and certificates. Failure to comply can result in penalties, making TAN registration essential for tax compliance.
India Company Setup simplifies the TAN registration process for both individuals and companies, helping them apply online and obtain their TAN number quickly and efficiently. With deep expertise in Indian tax regulations, our team ensures a smooth, hassle-free experience from start to finish.
(Tax Deduction and Collection Account Number) is a unique identifier used by entities responsible for deducting or collecting tax at source. It is a ten-character alphanumeric code issued by the Income Tax Department.
Structure of the TAN Number
• First 4 characters (Alphabets): First 3 letters represent the jurisdiction code; the 4th is the first letter of the applicant’s name.
• Next 5 characters (Numbers): A system-generated unique code.
• Last character (Alphabet): A system-generated alphabet.
Businesses or Individuals deducting TDS on salary, contractor payments, rent above ₹1,80,000/year, etc.
Non-Profit Organizations making payments beyond specified limits.
Company Branches involved in TDS-deductible transactions.
Salaried individuals are exempt unless involved in tax-deductible payments.
According to Section 203A of the Income-tax Act, 1961, obtaining a TAN is mandatory for anyone deducting or collecting tax at source. It must be mentioned in:
• TDS/TCS returns
• Payment challans
• TDS/TCS certificates
• Other tax-related documents
Non-compliance can result in penalties and delays in tax processing.
• Lifetime Validity: Once issued, TAN remains valid for a lifetime with no need for renewal.
• Mandatory for TDS Payments: Banks will not accept TDS payments without a valid TAN.
• Applicable to Sole Proprietors: Proprietors who deduct tax must also register for TAN.
• Unique Identifier: Ensures proper tracking of tax deductions and collections by the Income Tax Department.
• Regulatory Compliance: Avoid penalties and ensure you’re aligned with tax laws.
• Efficient Tax Processes: Enables accurate and timely TDS/TCS payments.
• Easier Tracking: Facilitates record-keeping, reconciliation, and TDS certificate issuance.
1. Legal entity documents
2. Passport-size photograph
3. Address proof of registered office
4. PAN card of the business entity
5. Duly filled TAN Application Form (Form 49B)
TAN registration can be completed online or offline, depending on your preference.
Offline Process:
1. Fill Form 49B manually.
2. Submit it with the fee to any TIN-Facilitation Center (TIN-FC) managed by Protean.
3. Alternatively, download and print the form from the NSDL website and submit it physically.
Online Process:
1. Visit the NSDL portal.
2. Read the instructions carefully and fill out Form 49B.
3. Submit the application electronically.
4. Include your PAN number, as it is mandatory for processing.
Tip: If you don’t have a PAN, apply for PAN registration simultaneously.
At India Company Setup, we provide expert guidance and end-to-end support for TAN registration. Our tax professionals ensure that all documents are correctly prepared, forms are accurately filled, and submissions are processed promptly.
We stay up to date with the latest tax regulations, helping you stay compliant and avoid unnecessary delays or penalties. Whether you are a startup, SME, or large enterprise, our team ensures your TAN application is managed professionally and efficiently.
Secure your TAN today with India Company Setup — your trusted partner in tax and regulatory compliance.
At India Company Setup, we deliver a complete suite of business services to help you start, grow, and manage your company with ease. From registration to regulatory compliance, our expert support ensures your business stays legally sound and financially organized.
Our expert bookkeeping ensures every transaction is correctly recorded, reducing compliance errors and giving you a clear picture of your company’s financial health — crucial for GST, Income Tax, and MCA filings.
Focus on growing your business while we manage your books. By outsourcing to us, you eliminate the burden of paperwork, reconciliations, and regulatory upkeep — saving you both time and effort.
We help you monitor income and expenses in real time, so you maintain a healthy cash position, make informed decisions, and avoid last-minute cash crunches or missed tax deadlines.
TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department. It is mandatory for all entities who are required to deduct or collect tax at source (TDS/TCS). TAN must be quoted in all TDS/TCS returns, challans, and certificates.
TAN is required for:
Employers deducting TDS on salaries
Businesses deducting TDS on payments like rent, contractor fees, interest, etc.
Entities collecting TCS (e.g., sale of liquor, timber, scrap)
Government and non-government deductors
You can apply:
Online: Through the NSDL-TIN portal (https://www.tin-nsdl.com)
Offline: By submitting Form 49B at TIN-Facilitation Centres
After submission and verification, TAN is issued by the Income Tax Department, usually within 5–10 working days.
No supporting documents are required at the time of online TAN application. However, you must provide:
Correct details of the deductor (name, address, PAN)
Valid contact and communication details
Acknowledgement of submission for record-keeping
Failure to obtain a TAN when required can lead to:
Penalty of ₹10,000 under Section 272BB
Inability to file TDS/TCS returns
Deducted TDS not being credited to the payee’s PAN
Non-compliance notices from the tax department
Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
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