TAN Card: Importance, Structure, and Application Process

Tan Card

A TAN Card is a must-have document for anyone involved in the deduction of TDS (Tax Deducted at Source) or collection of TCS (Tax Collected at Source). The individual needs to quote the TAN details while filing the TDS or TCS returns. Further, banks also do not accept challans concerning TDS/TCS if the individual does not have a TAN. Section 203A of the Income Tax Act states a fine of up to RS. 10,000 for failure to comply with any of the worded provisions. This blog will discuss everything you need to know about a TAN Card.

What is a TAN Card?

A TAN holds the 10-digit alphanumeric identification number of an individual involved in collecting or deduction of TCS or TDS. If the individual does not have valid TAN details, the TIN facilitation centres will not accept the TCS and TDS returns.

Importance of TAN Card

The TAN is used by the income tax authorities to track the TCS/TDS transactions of the individuals in a financial year. This is required while filing tax returns every year. Failure to quote PAN might result in a fine of up to RS. 10,000. Given below are some of the documents that require PAN to be mentioned:

  • TDS return statements.
  • TCS return statements.
  • TCS/TDS certificates.
  • Financial transaction statements.
  • TDS/TCS challans.

Who Can Apply for TAN?

A TAN is a mandatory document required by people involved in the deduction of TDS or TCS. Applying for a TAN is compulsory for the below-given applicants:

  • Individuals involved in the collection of TCS.
  • Hindu Undivided Families.
  • Companies.
  • Association of Persons.
  • Firms.
  • Central Government/State Government, Local Authorities, Statutory Bodies.

Structure of TAN Card

The TAN is composed of 10 alphanumeric characters used to denote the holder’s information. The first four characters of the TAN are letters, the following five characters are digits, and a last character is again a number. Let’s see what each of these characters stands for:

  • The first three characters stand for the state where the TAN has been issued. For example, the first three characters will be ‘DEL’ if the TAN has been issued in Delhi.
  • The 4th character of the number stands for the first initial of the cardholder.
  • The following five characters are a random combination of numbers.
  • The last character is again an unexpected letter.

How to Apply Online for TAN?

The application for a new TAN card can be made online or by visiting any of the NSDL TIN Centres. Given below are the steps to create a TAN card application on the TIN NSDL Website:

Step 1: Visit the official NSDL TIN portal.

Step 2: Click on ‘TAN’ from the ‘Services’ drop-down on the homepage.

Step 3: Click on the ‘Apply Online’ button.

Step 4: Click’ New TAN’.

Step 5: Carefully go through all the guidelines, fill Form 49B with all the required information, and click on ‘Submit’.

Step 6: This will take you to the acknowledgement page displaying the following information

  • 14-digit acknowledgement number.
  • Name of the applicant.
  • Applicant’s status.
  • Applicant’s contact information.
  • Payment details.
  • Box for signature.

Step 7: Save the acknowledgement and take a printout of the same.

Step 8: Send the printout along with the supporting documents via mail or speed post to:

NSDL e-Governance Infrastructure Limited,

5th floor, Mantri Sterling

Plot No.341, Survey No.997/98,

Model Colony

Near Deep Bungalow Chowk

Pune – 411016

Note: The applicant must write ‘APPLICATION FOR TAN- Acknowledgement Number’ on the envelope while sending the acknowledgement slip and documents. The title and documents should be sent to the authorities within 15 days from the date of application.

How to Check TAN Card Status?

Once the applicant has applied, an acknowledgement number will be generated that can be used to track the status. Check the status using the below steps with your acknowledgement number:

Step 1: Visit the official TIN NSDL portal.

Step 2: Click on the ‘TAN’ from the ‘Services’ drop-down menu.

Step 3: Select the ‘Know Status of Your Application’ option.

Step 4: Enter the 14-digit acknowledgement number.

Step 5: Verify the captcha code and select the submit option. The application status will then be displayed on the screen.

Note: The applicant can also check the status by phone by calling 020 – 27218080 or by SMS to 57575 typing ‘NSDLTAN’. 

TAN Card Related Articles

PAN TIN Facilitation Centre TAN Card Details
PAN-TAN-TIN Difference Know Your TAN
TAN Card Status TAN Card Application

Frequently Asked Questions (FAQs)

Who is responsible for allotting TAN?

The Income TAX Department is responsible for issuing and allotment to applicants.

What is the fee for a TAN card application?

filing a TAN card application fee is Rs. 65 (inclusive of 18% GST).

What are the available ways of payment for TAN card fees?

TAN card fees can be made through demand draft, cheque, net banking, credit card, and debit card.

Can I quote PAN instead of TAN?

No, you cannot use your PAN in place of TAN; both these identification numbers serve different purposes.

While making payment through Demand Draft, who should it be addressed?

The demand draft needs to be drafted in favour of NSDL-TIN.

Should I apply for a new TAN in case of a change of address?

If you are moving outside your current city, you are required to surrender the existing TAN and apply for a new one. And if you are not shifting anywhere else staying in the same city, then there is no need to apply for a new TAN.

Which TAN should be used if I have a duplicate TAN?

If you have both the original TAN and duplicate TAN, you should use the original one.

Akhil Pillai A quick and constant learner, Akhil can bring off any niche in demand with his expertise in simplifying the complex. He believes in focusing on what's missing, rather than adoring what's in his bag.When he is not busy typing away, he likes to spend his time watching his favourite football team; Arsenal! Being a lifelong Michael Jordan fan, he hopes to achieve the dream of meeting his idol one day.
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