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TAN Registration & Tax Collected at Source (TCS)

TAN (Tax Deduction and Collection Account Number) is a mandatory 10-digit alphanumeric number required by any person responsible for deducting or collecting tax at source. TCS (Tax Collected at Source) is the tax that sellers collect from buyers for certain high-value transactions and deposit to the government.

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Service Overview

TAN, TCS — Get Both Right

Every person required to deduct TDS or collect TCS must first obtain a TAN. Without a TAN, TDS and TCS deposits cannot be made and returns cannot be filed. TAN is valid for the lifetime of the entity and must be quoted on all TDS/TCS challans, returns, and certificates. TCS applies to sellers of high-value items — motor vehicles above ₹10 lakhs, timber/forest produce, scrap, toll roads, and more recently, TCS on foreign remittances under the Liberalised Remittance Scheme (LRS) and on e-commerce transactions. We handle TAN registration and complete TCS compliance.

Critical: TAN is mandatory before making any TDS/TCS deposit. Operating without TAN while having deduction or collection obligations attracts a penalty of ₹10,000 under Section 272BB. Every challan, return, and certificate must quote the correct TAN — misquoting TAN invalidates the payment in the system.

TAN Registration

Form 49B application

Apply for TAN through Form 49B online or offline. TAN is a prerequisite for depositing TDS/TCS challans and filing returns. Multiple TANs for the same entity are invalid — one TAN per entity.

TCS on Motor Vehicles

Section 206C for cars above ₹10 lakhs

Sellers of motor vehicles with sale price exceeding ₹10 lakhs must collect TCS at 1% from the buyer at the time of sale. The TCS must be deposited by the 7th of the following month.

TCS on LRS Remittances

Overseas transfers and foreign travel

Authorized dealers must collect TCS at 20% on remittances under LRS exceeding ₹7 lakhs in a year (education and medical remittances have concessional rates).

Form 27EQ Return Filing

Quarterly TCS return

Sellers who collect TCS must file quarterly returns in Form 27EQ within 15 days of quarter-end (for Q1-Q3) and by May 31 (for Q4). Issue Form 27D certificate to buyers.

Eligibility Criteria

Who Needs TAN and TCS Compliance?

TAN is needed by all TDS deductors. TCS applies to specific sellers.

1

All TDS Deductors

Any person or entity legally required to deduct TDS under Sections 192 to 196D must obtain a TAN. Companies, firms, individuals (if accounts are audited), and government departments all need TAN.

2

TCS Applicable Sellers

Sellers of motor vehicles (>₹10L), liquor, timber, forest produce, minerals, and scrap must collect TCS. TCS also applies on e-commerce transactions (0.1%) and LRS remittances.

3

E-Commerce Operators

E-commerce operators are required to collect TCS at 1% (0.5% CGST + 0.5% SGST) on net value of taxable supplies made by sellers through their platform — and pay this to the government.

4

Remittance Facilitators

Banks and authorized dealers facilitating overseas remittances under LRS must collect TCS from remitters above ₹7 lakhs threshold.

Key Benefits

Why Proper TAN & TCS Compliance Matters

TAN is the backbone of all TDS and TCS transactions. TCS non-compliance has direct financial consequences.

01

Legal Prerequisite

Without TAN, TDS/TCS deposits cannot be made on the NSDL system. Operating without TAN while having TDS/TCS obligations attracts penalties under Section 272BB.

02

Buyer Credit

TCS collected from buyers appears in their Form 26AS as tax credit — allowing them to adjust it against their income tax liability. Proper filing ensures buyers get their credit.

03

Avoid Prosecution

Non-collection or non-deposit of TCS after collection is treated similarly to TDS default — attracting interest, penalties, and potential prosecution for persistent offenders.

04

Customer Relationship

Buyers of high-value items prefer sellers who issue correct Form 27D (TCS certificate) promptly — it affects their individual tax planning and credibility.

05

Regulatory Compliance

TCS provisions under Sections 206C and 194-O are expanding in scope. Staying updated on which transactions trigger TCS protects your business from inadvertent violations.

06

GST + TCS Coordination

For e-commerce, TCS under GST (Section 52) and TCS under Income Tax (Section 194-O) are separate obligations. We manage both in a coordinated, error-free manner.

Step-by-Step Process

TAN Registration & TCS Compliance Setup

TAN registration is quick. TCS compliance is ongoing. We handle both completely.

Your journey Step 1 of 6

Scroll through the steps — or skip the queue and let our experts handle every one of them for you.

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1
Step 1 of 6

Apply for TAN (Form 49B)

Submit Form 49B online through NSDL/UTIITSL or offline at a TIN facilitation centre. Provide entity details, business address, and PAN of the deductor.

2
Step 2 of 6

Receive TAN

TAN is typically allotted within 5–7 working days. Use the TAN for all TDS/TCS challan deposits and return filings from the date of allotment.

3
Step 3 of 6

Identify TCS Applicable Transactions

Review all sales and collections to identify transactions where TCS applies — based on nature of goods, sale value thresholds, and buyer type (buyer vs. consumer).

4
Step 4 of 6

Collect TCS from Buyers

Add TCS to invoices for applicable transactions. Collect the TCS amount from buyers over and above the sale price at the applicable rate.

5
Step 5 of 6

Deposit TCS Challan

Deposit collected TCS using Challan 281 by the 7th of the following month. Use TAN as the identifier for all deposits.

6
Step 6 of 6

File Quarterly Form 27EQ

File the quarterly TCS return (Form 27EQ) within 15 days of quarter-end. Issue Form 27D TCS certificate to each buyer within 15 days of the quarterly return.

Document Checklist

Documents for TAN Application & TCS Compliance

TAN application is simple. TCS filing requires buyer-wise transaction data.

TAN Application Documents

Form 49B (filled)

Completed application form with entity name, address, PAN, and nature of deductor.

PAN of Entity

PAN of the company, LLP, firm, or individual applying for TAN.

Address Proof

Recent utility bill or registration document confirming the principal address of the deductor.

If a buyer does not furnish their PAN, TCS must be collected at twice the applicable rate (or 5%, whichever is higher) under Section 206CC. Always collect buyer PAN before making the sale.

Post Registration

Ongoing TAN & TCS Management

TAN is permanent. TCS is a recurring monthly obligation.

As needed

Update TAN Details if Changed

If your entity's registered office changes, PAN changes, or the TAN was incorrectly issued, file a correction with NSDL/UTIITSL immediately. Incorrect TAN details cause challan matching failures.

Quarterly

Issue Form 27D to Buyers

Issue the TCS certificate (Form 27D) to every buyer from whom you collected TCS — within 15 days of filing the quarterly Form 27EQ return.

March 31

Annual TCS Reconciliation

Reconcile total TCS collected during the year with Form 27EQ returns and challan deposits. Any shortfall must be deposited with interest before the assessment year closes.

Why Finace India?

Your Trusted TAN & TCS Compliance Partner

Operating without TAN while deducting or collecting tax attracts a ₹10,000 penalty, and a misquoted TAN invalidates the payment entirely. We get your TAN right and keep every filing linked to it correctly.

TAN Registration Handled

Application filed correctly the first time so your 10-digit TAN is active before any deduction obligation arises.

TCS Rate & Threshold Accuracy

High-value transactions checked against current TCS rates so collection is neither missed nor over-charged.

Correct TAN Quoting

Every challan, return and certificate checked to ensure TAN is quoted correctly and payments aren't invalidated.

E-Commerce & Remittance Coverage

TCS compliance handled for e-commerce operators and remittance facilitators under their specific provisions.

4,000+

TAN Registrations & Filings

100%

On-Time Filing

4.8 ★

Client Rating

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FAQ

Frequently Asked Questions

TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number mandatory for any entity that deducts TDS or collects TCS. Without TAN, you cannot deposit tax to the government or file TDS/TCS returns.
No. PAN is issued to taxpayers as a personal tax identity. TAN is issued specifically to entities responsible for deducting/collecting tax at source. A single entity has one PAN and one TAN.
Under Section 206C(1G), TCS at 20% is collected on remittances above ₹7 lakhs per year under the Liberalised Remittance Scheme — except for education (5%) and medical treatment (5%) purposes, which have concessional rates.
Yes. TCS collected from you (as a buyer) appears in your Form 26AS and can be claimed as tax credit against your total income tax liability when filing your ITR — just like TDS deducted from your income.
Under Section 206C, failure to collect TCS makes the seller (collector) liable to pay the TCS amount as if it were collected. Interest at 1% per month applies. A penalty equal to the uncollected TCS may also be levied under Section 271CA.

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