{"id":5230,"date":"2021-09-07T12:07:26","date_gmt":"2021-09-07T06:37:26","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=5230"},"modified":"2025-01-07T12:34:16","modified_gmt":"2025-01-07T07:04:16","slug":"tan-number","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/","title":{"rendered":"What Is TAN Number and Why It Matters for Your Business"},"content":{"rendered":"<p>The Tax Deduction\/Collection Account Number (TAN) is a 10-digit alphanumeric identity number issued to persons responsible for collecting or deducting tax at the source.<\/p>\n<p><span style=\"font-weight: 400;\">In India, all companies and individuals need to have a TAN number to run their day-to-day operations hassle-free and avoid penalties.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ll walk you through everything you need to know about TAN in this blog.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d23712c62eb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d23712c62eb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#What-is-TAN\" >What is TAN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#Importance-of-TAN-for-businesses\" >Importance of TAN for businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#How-to-apply-for-TAN\" >How to apply for TAN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#Online-TAN-Application\" >Online TAN Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#Offline-TAN-Application\" >Offline TAN Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#Penalties-for-TAN-defaulters\" >Penalties for TAN defaulters<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/tan-number\/#Frequently-Asked-Questions-FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-TAN\"><\/span><b>What is TAN?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Tax Deduction\/Collection Account Number also known as TAN number starts with 4 alphabets and 5 numerals, followed by 1 alphabet. It is issued by the Income Tax Department.\u00a0<\/span><\/p>\n<p>The TAN number must be quoted in TDS and TCS returns, payments, challans, and certificates; the penalty for not doing so is a fine of Rs 10,000!<\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_ca_what_is_TAN&amp;utm_source=organic\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Pay taxes in 1-click!<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-TAN-for-businesses\"><\/span><b>Importance of TAN for businesses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">TAN number serves as a crucial identification number for businesses for filing tax returns.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All businesses, big or small, are mandated by the Government of India to register for a TAN number.<\/span><\/p>\n<p>Why do they need a TAN number?<\/p>\n<p>All businesses are required by law to deduct or collect tax from every sale of certain products like liquor and luxury cars.<\/p>\n<p>This tax is called TDS or TCS. Businesses then have to declare how much tax has been collected or deducted.<\/p>\n<p>TAN number is used to identify each business&#8217;s TDS\/TCS declarations, returns, and deposits.<\/p>\n<p><em>Read more about <a href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-tds\/\">TDS <\/a>and <\/em><em><a href=\"https:\/\/razorpay.com\/learn\/tax-collected-at-source\/\">TCS!<\/a><\/em><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\"><b>[Also Read: <a href=\"https:\/\/razorpay.com\/blog\/tds-rate-chart\/\">TDS Rate Chart: FY 2022-23<\/a><\/b><b>]<\/b><br \/>\n<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-apply-for-TAN\"><\/span><b>How to apply for TAN<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Tax Information Network (TIN) allots TAN to businesses on behalf of the Income Tax Department. Businesses can apply for their TAN number online or offline.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Online-TAN-Application\"><\/span><b>Online TAN Application<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can follow the following steps if applying for TAN online:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Visit the <strong>NSDL-TIN website<\/strong> (<\/span><a href=\"https:\/\/tin.tin.nsdl.com\/tan\/index.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/tin.tin.nsdl.com\/tan\/index.html<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Select &#8216;<strong>Online application for TAN (Form 49B)&#8217;<\/strong>\u00a0on the website<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the \u2018<strong>Apply for new TAN<\/strong>\u2019 option, select the category of <strong>deductors<\/strong> and click on \u2018Select\u2019\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Carefully fill <strong>Form 49 B<\/strong>, avoiding any errors, and click on \u2018Submit\u2019.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Now, <strong>pay the fees<\/strong> online, or make a DD, <a href=\"https:\/\/razorpay.com\/learn\/what-is-cheque\/\">cheque<\/a>, payable at par in Mumbai, favoring NSDL-TIN or by credit\/ debit card<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can track the status of your application with a 14-digit acknowledgment number<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next, print this document, sign it, and then send it to the NSDL office at:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>NSDL e-Governance Infrastructure Limited,<br \/>\n5th floor, Mantri Sterling,<br \/>\nPlot No. 341, Survey No. 997\/8,<br \/>\nModel Colony,<br \/>\nNear Deep Bungalow Chowk,<br \/>\nPune \u2013 411016<\/strong><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Offline-TAN-Application\"><\/span>Offline TAN Application<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can also apply for TAN offline by following these steps:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Visit the nearest TIN Facilitation Centre and avail Form 98. You can also download this from the Income Tax website for free<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If your company is not registered under the Companies Act, a Form INC-7 has to be filled out<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fill the form and submit it at the TIN counter along with a processing fee of Rs 63 via demand draft, cheque, or cash.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can <strong>track<\/strong> the status of your TAN application with the NSDL by calling the TAN call center at <strong>020-27218080<\/strong> or sending an<strong> SMS \u2018NSDLTAN\u2019 to 57575.<\/strong><\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Penalties-for-TAN-defaulters\"><\/span><b>Penalties for TAN defaulters<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If a company fails to quote Tax Deduction\/Collection Account Number on documents where TAN is mandatory, it will be levied a penalty of Rs 10,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a company provides incorrect TAN, it will be penalized Rs 10,000 under Section 272BB of the Income Tax Act.<\/span><\/p>\n<p>This is why it is important to keep track of your TAN number and ensure that you have declared it correctly at every step of the way.<\/p>\n<p>Of course, being human is to err, and we are bound to make mistakes!<\/p>\n<p>Thankfully, <a href=\"https:\/\/razorpay.com\/x\/tax-payments\/\">RazorpayX&#8217;s Tax Payment<\/a> solution is built to automate all these processes, saving you time, effort and money!<\/p>\n<p>If you pay Advance Tax, GST, and TDS\/TCS, you know the pain of having to deal with three different, slow, and tedious government portals. With RazorpayX:<\/p>\n<ul>\n<li>Get one smooth, sleek dashboard for everything<\/li>\n<li>CA makes your tax payments? Now collaborate seamlessly with custom access features<\/li>\n<li>Never lose a challan again; all\u00a0challans generated and stored in one single place<\/li>\n<li>And so much more! RazorpayX is an all-in-one banking suite, optimized for Indian businesses.<\/li>\n<\/ul>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_ca_what_is_TAN&amp;utm_source=organic\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Pay taxes in 1-click!<\/a><\/div>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-FAQs\"><\/span><strong>Frequently Asked Questions (FAQs)<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>TAN Number is a 10-digit alpha-numeric number, issued by the Income Tax Department. Read on to know the importance and process of application for TAN Number.<\/p>\n","protected":false},"author":151156479,"featured_media":5232,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[],"class_list":{"0":"post-5230","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/5230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156479"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=5230"}],"version-history":[{"count":11,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/5230\/revisions"}],"predecessor-version":[{"id":15329,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/5230\/revisions\/15329"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/5232"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=5230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=5230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=5230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}