How to Register TAN on Income Tax Portal?

Getting a Tax Deduction and Collection Account Number (TAN) plays a key role for any group that has to handle TCS/TDS. A TAN helps groups follow Indian tax rules, makes tax steps easier, and keeps them from facing fines.

This tutorial will take you through the steps of registering a TAN on the Income Tax website. This gives you an idea of what to do and some ultra-basic tips to get registered.

Overview of TAN

TAN — The Tax Deduction and Collection Account Number (TAN) is the key unique id of Income Tax department distributed to all the parties who are deducting or collecting tax at source. It comprises a 10-digit alphanumeric number that is binding for all organizations and individuals required to collect or deduct tax at the source according to the Income Tax Act, 1961.

Activating and registering your TAN offline and online is vital for a simplified tax-associated process, ensuring adherence to tax laws and supporting the accurate processing of tax deductions.

Main Features of TAN

Compulsory Usage: It is essential for filing TCS/TDS returns, circulating certificates, and different tax-associated documents.
Structure: TAN includes ithe nitials of the entity, jurisdiction codes, and system-created numbers. Example: PQRS45678T.
Permanent Validity: TAN does not expire and does not require renewal.

Who Requires a TAN?

Any entity- comprising persons, firms, and companies – that deducts tax at the source is needed to possess a TAN. The validity for tan registration offline and online includes the following:

Employers deduct TDS from employee wages.
Companies making renumerations to contractors or subcontractors.
Financial institutions gather tax on interest payments.

Pre-Registration Requisites

Documents Required

If you have to follow the TAN registration procedure, make sure you carry all these documents:

Proof of identity i.e., Voter ID/passport / Aadhaar, etc.)
The PAN of the applicant.
Show proof of address (rent, utility bill, etc.)

First, you can start the TAN application offline and online, but gather all these prior to them:

Name of the organization or business (if applicable).
Address for correspondence.
Name of the applicant.

Requirements for Registering TAN on the E-filing Portal

You must finish the specified process before registering TAN on the income tax portal:

Valid and active TAN
PAN of the primary contact must be registered on the e-filing portal

Stepwise Guide on How to Register TAN on the Income Tax Website

Step 1:

Go to income tax e filing website, and hit on ‘Register’

Step 2:

Select Others Now, in Category——> Pick: ‘Tax Deductor and Collector’ from the dropdown list.

Step 3:

Enter the Organisation’s TAN and then click on ‘Validate.’

Step 4:

a) If TAN is present in the database, enrolled with TRACES, and the registration request is not put up already and is pending acceptance:

Select Continue to see the Basic Details page.
The fundamental details are pre-completed. Select Continue.

b) If TAN exists in the database but is not registered with TRACES and the request for registration has not been put up already and is pending acceptance:

Click Continue to see the TRACES page.
Select Register with e-Filing on TRACES to see the Basic Details page.
Key in the basic details as needed and click Continue.

Mark: You initially have to register on TRACES. Thereon, you will be directed to the e-filing Registration page by choosing Register with e-Filing.

c) If TAN is present in the database, the enrolment request is put up already and pending acceptance:

An error message is shown, and you can opt to withdraw from the registration procedure.

Step 5:

Input the details of the individual making payments or gathering tax and select Continue.

Step 6:

Provide the contact details, including the Main Mobile Number, postal address, and email ID, and select Continue.

Step 7:

As you key in Step 6, two different 6-digit OTPs are sent to your main mobile number and email ID. Enter the different 6-digit OTPs and choose Continue.

Note:

OTP will be acceptable for 15 minutes only
You have three tries to enter the correct OTP
The OTP expiry countdown timer on the screen informs you when the OTP will lapse. On selecting Resend OTP, a fresh OTP will be generated and dispatched.

Step 8:

On the Verify Details page, inspect the details presented, edit the details if required, and select Confirm.

Step 9:

On the Set Password page, enter your selected password in the Set Password and Confirm Password textboxes, customize the message, and click on Register.

Note:

Never click Back/Forward or Refresh

Remember the Password Policy when You are Typing Your New Password:

The password should have at least 8 characters and a maximum of 14 characters
It should include a number
It should contain both uppercase and lowercase letters
It should consist of one special character (e.g., %$#@)

Step 10:

Display a success Message with the Transaction ID. Keep that Transaction ID handy for future information. The rest of the registration process ceases when the regulatory authority approves this list.

Offline Registration for TAN

If online registration is not practicable, you can register offline:

Complete Form 498: Download the form from the NSDL portal.
Give PAN and Entity details: Enter the correct PAN and entity
Submit form to TIN-FC: Submit the form to the nearest Tax Information Network Facilitation Centre
TAN Get: You will get TAN on post after verifying.

Activating TAN on Income Tax Website Online

Head over to the income tax department portal.
Use PAN and other details for login or Register
Navigate to “TAN” Activation section
Type the required information here.
Send it in and wait for verification.

Verifying Your TAN

Click on the NSDL website and use the TAN verification tool, for your verification of TAN. Enter TAN and see its status.

Time Duration for Verification

TAN verification takes between an hour and 5 working days, depending on whether some applications are being processed otherwise.

Benefits of Enabling TAN

Here Are the Benefits of Activating Your TAN:

Adherence to tax laws is guaranteed,
Increases clout with tax department and banks
Promotes efficient commissioning in view of tax papers

Illegal Consequences of Non-Activation

If you do not activate TAN there are penalties which may cause difficulties in filing returns and even stop your business from doing required tax deductions.

Why TAN Compliance is Important?

Failing to register for TAN will result in heavy penalty of Rs. 10,000 Anway beyond compliance, having a TAN makes tax procedures very lightweight and one is more accountable. Ensure quick registration and not jump into an unnecessary mess.

Wrapping Up

Every entity engaged in TDS/TCS has to register for TAN. Follow these points as per guide will make the process so easy and you will fulfill your tax compliance. Keep it basic and easier just use online tools or hiring a professional to do the similar.