Not Permitted Under Law
- As per Section 203A of the Income Tax Act, 1961, a business or entity is allowed to have only one TAN per legal entity per jurisdiction
- Holding multiple TANs for the same function or region is not permitted and is considered a case of duplication
- The Income Tax Department may flag or penalize such duplication during scrutiny or compliance review
- Businesses must surrender the duplicate TANs if detected
Situations Where Multiple TANs Are Valid
- Separate TANs may be allowed if the business operates in different states or branches, and has independent TDS compliance per location
- Some large organizations with distinct payroll units may have valid reasons to hold multiple TANs, with proper documentation and department approval
- Government departments or autonomous bodies may hold separate TANs for individual offices
Consequences of Holding Duplicate TANs
- Filing TDS or TCS under different TANs can cause confusion in tax credit reporting
- Deductees may face issues with Form 26AS mismatches or delayed refunds
- Business may receive notices from the Income Tax Department instructing surrender of extra TANs
- Leads to administrative complexity and compliance burdens during audits and return filings
How to Surrender Duplicate TANs
- File a TAN surrender request using the TAN correction form
- Select the option to cancel or surrender the duplicate TAN
- Mention the valid TAN to be retained and list all others to be surrendered
- Submit the form at a TIN Facilitation Center or through the official TAN correction portal
- Include a declaration stating the reason for surrender and that the other TANs will no longer be used
Maintain One Active TAN per Jurisdiction
- Businesses must ensure that they operate under a single valid TAN for each region of TDS compliance
- Helps ensure consistent reporting, proper credit to deductees, and smooth tax operations
- Avoids legal risk, duplication, and administrative errors in TDS and TCS processes
0 Comments