TAN
Unique 10-character alphanumeric identifier required by every person responsible for deducting or collecting tax at source.
Filing window
Apply before the first TDS deduction; obtained via Form 49B
Regulator
Central Board of Direct Taxes (CBDT)
Regulator
Central Board of Direct Taxes (CBDT)
Deadline
Apply before the first TDS deduction; obtained via Form 49B
Penalty
Section 272BB: penalty of INR 10,000 for non-quoting of TAN ...
Legal basis
Income Tax Act, 1961
What is TAN?
Unique 10-character alphanumeric identifier required by every person responsible for deducting or collecting tax at source.
- +All Indian employers and payers subject to TDS
- +Foreign-owned Indian subsidiaries
- +EOR providers processing client-funded payroll
Statutory basis
Income Tax Act, 1961
Section 203A
Enforced by
Central Board of Direct Taxes (CBDT), through NSDL/UTI Infrastructure
Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.
The stake
Filing window for TAN. Skipping or mishandling this compliance carries direct financial and operational consequences.
Why TAN matters for your GCC
TAN is a income tax and withholding requirement for foreign-owned Indian entities and GCCs. Missing the apply before the first tds deduction; obtained via form 49b obligation triggers section 272bb: penalty of inr 10,000 for non-quoting of tan on tds challans and returns, and downstream filings or transactions may be blocked until rectification. Most foreign parents discover TAN issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.
The 4 ways TAN goes wrong
Real scenarios from real GCC compliance audits. Each one preventable.
Trap 01
Computing TAN on incorrect wage base or taxable transaction value
Trap 02
Missing the statutory remittance deadline and incurring interest under Section 201(1A)
Trap 03
Submitting incorrect deductee PAN, resulting in TDS credit not reflecting in employee Form 26AS
Trap 04
Failing to file the quarterly statement on time, attracting Section 234E late fee
Done for you
Payroll Management
IRPR Network handles TAN as part of our Payroll Management service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.
Our workflow
- 01Identify the trigger event in your GCC operations
- 02Prepare and validate the TAN filing or compliance step
- 03Submit to the regulator and obtain acknowledgement
- 04Track in your compliance calendar for ongoing or recurring obligations
Concepts connected to TAN
These terms are filed together, depend on each other, or share regulatory authority.
Income Tax and TDS
Form 24Q
Quarterly return filed with the Income Tax Department reporting TDS deducted on salaries.
Income Tax and TDS
Form 26Q
Quarterly TDS return for non-salary payments such as professional fees, rent, commission, and contractor payments.
Income Tax and TDS
TDS Section 192
Income Tax Act provision requiring employers to deduct tax at source on salary payments to employees.
Asked about TAN
5 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.
Need help with TAN?
IRPR Network manages TAN as part of Payroll Management, with a zero-penalty guarantee.
Explore the serviceQ01What is TAN and who does it apply to?
+
Unique 10-character alphanumeric identifier required by every person responsible for deducting or collecting tax at source. For foreign-owned GCCs, TAN applies to all indian employers and payers subject to tds. IRPR Network handles TAN as part of our Payroll Management service.
Q02When is TAN due?
+
TAN is due apply before the first tds deduction; obtained via form 49b. Late filing triggers section 272bb: penalty of inr 10,000 for non-quoting of tan on tds challans and returns.
Q03What law governs TAN?
+
TAN is governed by Income Tax Act, 1961, specifically Section 203A. The compliance is enforced by Central Board of Direct Taxes (CBDT), through NSDL/UTI Infrastructure.
Q04What is the penalty for non-compliance with TAN?
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Non-compliance attracts: Section 272BB: penalty of INR 10,000 for non-quoting of TAN on TDS challans and returns IRPR Network's compliance retainer is designed to prevent these exposures through proactive filing, citation tracking, and a defined compliance calendar.
Q05Who handles TAN for foreign-owned GCCs in India?
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IRPR Network handles TAN end-to-end as part of our Payroll Management service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.
Handle TAN the right way, the first time.
Book a 30-minute consultation. We will map your TAN obligations alongside every other India compliance for your GCC, on one calendar, one retainer.
Book a consultation