Article discusses about Meaning/ Structure/ Relevance of TAN, Persons liable to apply for TAN, Consequences of not quoting TAN, Procedure to obtain TAN, Places from where to obtain Form 49B, Authority empowered to allot TAN, Procedure for online TAN application.

Meaning of TAN

TAN i.e. Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed.

Persons liable to apply for TAN

Every person liable to deduct tax at source or collect tax at source is required to obtain TAN. However, a person required to deduct tax under section 194-IA can use PAN in place of TAN as such person is not required to obtain TAN.

Relevance of TAN

As per section 203A of the Income-tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN. Section 203A also makes it mandatory to quote TAN in following documents:

  1. TDS statements i.e. return
  2. TCS statements i.e. return
  3. Annual Information Return
  4. Challans for payment of TDS/TCS
  5. TDS/TCS certificates
  6. Other documents as may be prescribed

The provisions relating to obtaining of TAN will not apply to a person deducting tax under section 194-IA (i.e. from sale consideration of land/building) and to such person, as may be notified by the Central Government in this behalf.

Consequences of not quoting TAN

Section 272BB(1) provides for penalty for failure to obtain TAN and section 272BB(1A) provides for penalty for quoting incorrect TAN. Penalty imposable under section 272BB is Rs. 10,000.

Procedure to obtain TAN

​There are two modes for applying for TAN: (1) Online mode and (ii) Offline mode, they are as follows:

OFFLINE—An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN Facilitation Centres (TIN-FC). Addresses of TIN-FCs are available at NSDL-TIN website (https://www.tin-nsdl.com).

In case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. INC-7 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.​

ONLINE—Online application for TAN can be made from the NSDL-TIN website.

Addresses of the TIN FC are available at www.incometaxindia.gov.in or https://www.tin-nsdl.com.

Authority empowered to allot & Intimate TAN

TAN is allotted by the Income-tax Department on the basis of the application submitted online at NSDL-TIN website or offline to TIN-FC managed by NSDL. NSDL will intimate TAN to the applicant at the address specified in the application.

Can an application for TAN be made on a plain paper?

No. TAN Application can be made only on Form 49B. The application form can be downloaded from the website of the Income Tax Department (www.incometaxindia.gov.in) or NSDL ( https://www.tin-nsdl.com ) or obtained from any other source. The application is also available at TIN Facilitation Centres.

Can form 49B be filled on a typewriter?

Yes. But typing should be in capital letters with good impression.

Documents to be submitted along with TAN application

No documents are required to be accompanied with Form 49B i.e. the application for allotment of TAN. However, where the application is being made online, the acknowledgment which is generated after online filling up the form will be required to be forwarded to NSDL.

Structure of TAN

First 4 digits of TAN are alphabets, the next 5 digits of TAN are numeric and last digit is an alphabet.

First 3 alphabets of TAN represent the jurisdiction code, 4th alphabet is the initial of the name of the TAN holder who can be a company, firm, individual, etc. For example, TAN allotted to Mr. Mahesh of Delhi may appear as under:

DEL                            M                                 12345                           L

Places from where to obtain Form 49B

(1) Form 49B is freely downloadable from the website of Income-tax Department (http://www.incometaxindia.gov.in)

(2) It is also available at TIN-FCs.

(3) Legible photocopies of Form 49B or forms legibly printed exactly as per the format prescribed by Income-tax Department are also allowed to be used.

Procedure for online TAN application

Application Procedure

(a) An applicant will fill Form 49B online and submit the form

(b) If there are any errors, rectify them and re-submit the form.

(c) A confirmation screen with all the data filled by the applicant will be displayed.

(d) The applicant may either edit or confirm the same.

Acknowledgment

(1) The deductor can apply for TAN online at NSDL-TIN website (https ://tin.tin.nsdl.com/tan/index.html)

(2) On confirmation of correct uploading of online application, an acknowledgement will be displayed on screen. The acknowledgement consists of:

  • A unique 14-digit acknowledgment number
  • Status of applicant
  • Name of applicant
  • Contact details (address, e-mail and telephone number)
  • Payment details
  • Space for signature

(3) Applicant shall save and print this acknowledgment.

(4) Signature / Left thumb impression should only be within the box provided in the acknowledgment. In case of applicants other than ‘Individuals’, the authorised signatory shall sign the acknowledgment.

(5) Left hand Thumb impression, if used, should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp.

Payment

(a) Currently the fee for filing the TAN application is Rs.65/- + GST as applicable (the application fees may change from time to time).

(b) Payment can be made by

– demand draft or

– cheque or

– credit card / debit card or

– net banking

(c) Demand draft / cheque shall be in favor of ‘NSDL – TIN’.

(d) Name of the applicant and the acknowledgment number should be mentioned on the reverse of the demand draft / cheque.

(e) Demand draft shall be payable at Mumbai.

(f) Applicants making payment by cheque shall deposit a local cheque (drawn on any bank) with any HDFC Bank branch across the country (except Dahej). The applicant shall mention TANNSDL on the deposit slip. List of HDFC Bank Branches.

(g) Credit Card / Debit Card / Net Banking payment-  Facility of making payment by credit card / debit card / net banking is not available for below mentioned categories:

– Central Government / State Government and

– Statutory / Autonomous Bodies

Persons authorised to make credit card / debit card / net banking payment for other categories are as below:

Category of applicant Authorized person whose credit card / debit card / net banking can be used for making the payment
Company/Branch/Division of a company Any Director of the Company
Individual (Sole Proprietorship) / Branch of individual business Self
Hindu Undivided Family (HUF) Karta
Firm / Branch of firm Any partner of the firm
Association of Persons/Body of Individuals/ Association of Persons (Trusts)/Artificial Juridical Person Authorized signatory covered under section 140 of Income Tax Act, 1961

 Applicants making payment of application fee using credit card / debit card will be charged an additional charge of up to 2% (plus applicable taxes) of application fee by the bank providing payment gateway facility.

Applicants making payment through Net Banking facility will be charged an additional surcharge of 4.00 + GST for payment gateway facility.

On successful payment by credit card / debit card / net banking an acknowledgment will be displayed. Applicant shall save and print the acknowledgment and send to NSDL as mentioned in section ‘Submission of Documents‘ below.

Submission of Documents

(a) The acknowledgment duly signed, along with demand draft, if any, shall be sent to NSDL at

NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune – 411016

(b) Superscribe the envelope with ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’).

(c) Your acknowledgment and demand draft, if any, should reach NSDL within 15 days from the date of online application.

(d) Application will be processed only on receipt of duly signed acknowledgment and realisation of payment.

How to Contact NSDL

For more information

– Call PAN/TDS Call Centre at 020 – 27218080; Fax: 020 – 27218081

– e-mail us at: tininfo@nsdl.co.in

– SMS NSDLTAN <space> Acknowledgement No. & send to 57575 to obtain application status.

– Write to: NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016

Who is a deductor?

A Deductor is a specified person who is eligible to deduct tax on particular types of payments being made by them as per the provisions of the Income Tax Act, 1961.

What is TAN Registration Number?

TAN Registration Number is provided by TIN when TAN is registered on TIN.

Why is it necessary to have TAN?

The provisions of Section 203A of the Income Tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS / TCS / Annual Information Returns, payment challans and certificates to be issued. Deductor cannot file TDS / TCS statements and deposit challans for TDS / TCS payments in banks without TAN. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs 10,000/-.

Who is a deductor?

A Deductor is a specified person who is eligible to deduct tax on particular types of payments being made by them as per the provisions of the Income Tax Act, 1961.

What if incomplete form 49B is submitted?

The TIN Facilitation Centre will assist the applicant to correctly fill up Form 49B but incomplete or deficient application will not be accepted.

How can a deductor know his TAN if he has an old TAN, or if he has earlier applied for TAN but hasn’t got TAN?
TIN Facilitation Centres will help the deductors in ascertaining their correct TAN from the database. TAN can also be verified from the information on the website of Income Tax Department at www.incometaxindia.gov.in. Using the “Know Your TAN” facility at www.incometaxindia.gov.in or https://incometaxindiaefiling.gov.in the deductor can know his TAN.

Is it necessary to apply for different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend, commission, etc.?

No. TAN once allotted can be used for all type of deductions. It can also be used in case tax is being collected at source.

In case of multiple DDOs, should all of them apply for TAN?

Yes. In such a case, the name of the Division, name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN.

Can branches of companies/banks have separate TANs?

Yes. In such a case, the name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN

Can an e-TDS return be filed without TAN or in case TAN has not been alloted?
Quoting of TAN is mandatory in TDS and TCS returns, whether filed in paper or electronic format. The returns, whether in paper or electronic format, will not be received in case TAN is not quoted.

No separate TAN is required to obtain for the purpose of TCS

In case a TAN has already been allotted for the purpose of tax deduction at source (TDS), then no separate application needs to be made for obtaining separate TAN for the purpose of tax collection at source (TCS). The same number can be quoted in all returns, challans and certificates for TCS. However, if no TAN has been allotted, a duly filled in Form 49B, along with the application fees is to be submitted at any TIN-FC.

How to find the address of nearest TIN-FC?

Addresses of all TIN-FC are available on NSDL-TIN website (https://www.tin­nsdl.com).

Single TAN is to be used in case of deductor who has to deduct tax from different types of payment such as salary, interest payment, etc.

TAN once allotted can be used for all types of deduction and collection. In other words, it is not necessary to apply for different TAN if the deductor has to deduct tax from different types of payment such as salary, interest payment, etc.

Enquire about the status of TAN application

After making the application for allotment of TAN, the deductor can enquire about the status of his application by using the “Track your PAN/TAN Application Status” from www.incometaxindia.gov.in or https://www.tin-nsdl.com by quoting the unique 14-digit acknowledgement number after three days of his application.

Government deductors are also liable to obtain TAN

Like Non-Government deductors, the Government deductors are also required to apply for TAN.

PAN cannot be quoted in place of TAN

No. PAN should never be quoted in the field where TAN is required to be quoted. The purposes for which PAN and TAN are allotted are different. TAN is a unique identification number which is allotted to persons who are required to deduct tax at source or collect tax at source.

PAN is a unique identification number issued to keep a linking of the transactions carried by a person like payment of tax, TDS/TCS credit, return of income, return of wealth, correspondence with the Income Tax Department or correspondence by the Income Tax Department, investments made by a person, loan taken by a person, etc.

What is duplicate TAN?

Duplicate TAN is a TAN which has been inadvertently obtained by a same person who is responsible for deducting/collecting tax and who already has a TAN allotted to him earlier. In other words, more than one TAN issued to a person is called duplicate TAN. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.

In case duplicate TAN has been allotted, which TAN should be used?

In case duplicate TAN(s) have been allotted to a person, then the TAN which has been used regularly should be used. The other TAN(s) should be surrendered for cancellation by using “Form for Changes or Correction in TAN” which can be downloaded from the website of NSDL (https://www.tin-nsdl.com).

What do we have to do if we have been allotted a duplicate TAN by oversight?

In case duplicate TAN has been allotted, an application should be made for cancellation of the TAN which has not been used. Application for cancellation of TAN is to be made in the “Form for Changes or Correction in TAN” which can be downloaded from the website of NSDL (https://www.tin-nsdl.com) or obtained from any other source. The application is also available at TIN Facilitation Centres.

Changes in the basic data communicated at the time of making the application for allotment of TAN needs to be rectified

If there is any change in the data provided in the application for allotment of TIN (i.e. data provide at the time of allotment of TAN), then such change is to be communicated to the Income Tax Department by intimating the change in , the “Form for Change or Correction in TAN data”. Duly filed form should be submitted to the TIN Facilitation Centres or an online application can be made at https://www.tin-nsdl.com

(Republished with Amendments, Source- Income Tax Act, Rules and http://www.incometaxindia.gov.in/ )

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0 responses to “Tax Deduction/Collection Account Number (TAN)”

  1. shyam says:

    MAY TAN NO.LAST DIGIT NO.OF. 631G WHATE IS THE CATEGARI PLZ TEL ME
    9920521203

  2. Gagandeep Sharma says:

    Sir
    I am working as computer teacher at GOVT. SCHOOL in punjab. I want to apply for new TAN No . I want to know that under which category the form 49B is to be filled.

  3. Ritesh Tiwari says:

    “Special thanks”

  4. pradeep says:

    Sir please send me a Format of Tan application for the society

  5. vasant says:

    An organization is a propriotary concern.
    Tax is not being deducted from any payment. However consultancy payment is being received net of TDS. In such a case is it necessary to obtain TAN.

    While applying for Refund is TAN is necessary?

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