What is the purpose of TAN registration?
Tax deduction and collection account number (TAN) is a ten-digit alphanumeric number issued by the Income tax department to a person who is required to do a Tax Deduction at Source (TDS) or Tax Collection at Source (TCS).
All entities which deduct tax at source should hold TAN number for the deduction process, on behalf of the government and deposit it to the same.
Section 203A of Income Tax Act, 1961, mandates all entities to quote TAN in all communications related to TDS.
In every TDS/TCS returns, TDS/TCS certificates, TDS/TCS payment challans, the TAN number should be mentioned.
What are the benefits of TAN?
- TAN is a unique number with lifetime validity.
- TAN is ultimately used for deductions such as salary, interest, and dividends. While depositing tax, the challan type 281 should be used and the 10 digit TAN number should be mentioned correctly along with the name and address of the deductor.
- As TDS certificates are issued by a person or entity which holds TAN, the tax payee has an opportunity to know how much tax has been paid by him.
- Similarly, the tax payee can use the TDS certificate as proof of tax paid in any type of grievance.
- TAN must be quoted in all tax documents.
- The TAN number can be checked anytime on the website of NSDL, on clicking the “Know your TAN” from the above option.
- On successful submission of the TAN application, the status of the application can be tracked using the acknowledgment number.
What are the checklist restrictions on TAN?
- Without the TAN number, TDS can’t be accepted by the bank.
- An entity or an individual can not hold multiple TAN. If so, it should be surrendered.
- TAN numbers should be quoted correctly in all TDS/TCS related forms.
- Salaried individuals and Hindu Undivided Families (HUFs) are not required to obtain TAN.
- Quoting a false TAN may incur a penalty of Rs 10,000 under section 272BB(1).
- After acquiring TAN, everyone has access to change or correct the TAN data by visiting the official website of NSDL.
How to get a TAN?
TAN can be obtained by logging on to the Tax Information Network (TIN) website of the National Securities Depository Limited (NSDL).
- On the web page, click the “service” button.
- From the options drop-down, click “TAN” and then click “Apply online” in the left-hand side toolbar.
- Now select a “New TAN” from the drop menu.
- After selecting, a new page will be generated called “ Form 49B”
- Fill all the mandatory details required for form 49B. Eg: Name of the entity/individual, contact, etc.
- Once all the particulars of form 49B have filed, click on the “submit” button and it will proceed to the payment page.
After selecting the payment option, you will get an acknowledgment screen displaying the details;
- The 14-digit unique acknowledgment number
- Name of the individual or entity
- Status of the Application
- The contact information, like address, email, phone number
- Payment particulars
- Space for a signature
- Here the payment can be made in both online/offline mode. If the payment was made through an online mode like a credit card, debit card, net banking, then the application will be instantly successfully submitted.
- On the contrary, if the payment is to be done through offline mode, the duly signed acknowledgment receipt along with Demand Draft(DD)/ challan named to NSDL-TIN should be sent to NSDL Official address office.
- Download the form 49B from the NSDL website, and fill all the required details and attach the DD/ challan in the name of NSDL-TIN, sent to the NSDL office.
- Apart from that, get assistance from an expert for a hassle-free registration.
What are the documents required for TAN?
There are no specific documents required for obtaining the TAN, but some important documents are to be furnished,
- Address proof - Aadhar card or other.
- Applicant information - Name, address, contact, signature, etc.
- Certificate of incorporation for a company, LLP, etc.
- Agreement made with respect to a partnership firm, LLP, etc.
After incorporating the above details, the acknowledgment slip will be generated.
Save and print the acknowledgment receipt for further reference.
If the payment has to be done online, then a credit card, a debit card, or net banking can be availed as payment options.
If the mode of payment was offline, then the Demand Draft (DD)/ challan is the name of NSDL-TIN, should be sent to the NSDL office.
Frequently Asked Questions
It would take around 7- 10 days for processing the TAN application depending on the method of application. For physical TAN applications, the processing time will be longer in comparison.
The TAN will be allotted by the income tax department with respect to the application submitted to TIN facilitation centers, controlled by NSDL.
No, the allotted TAN can be used for dual TDS and TCS, and the same number is mentioned in all return forms, certificates, etc.
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