TAN or 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 or collecting tax. However, a person who is required to deduct tax under section 194-IA can use PAN in place of TAN as he is not required to obtain TAN. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.
The correct structure of TAN is as mentioned below:
|B L R||W||3 9 5 6 7||H|
|RCC Code : Bangalore||First
|Numeric (5 places)||Alphabet|
(a) TDS statements i.e. return
(b) Challans for payment of TDS
(c) TDS certificates
(d) Other documents as may be prescribed
If a person fails to apply for TAN or failed to quote or quotes incorrect TAN in the above specified documents, a penalty of Rs. 10,000 shall be levied.
An application for allotment of TAN shall be made in duplicate in Form No. 49B at any TIN Facilitation Centers (TIN-FC). Addresses of TIN-FCs are available at NSDL-TIN website. Alternatively, one can apply for TAN online at the NSDL-TIN website.
A fee of Rs. 55 + service tax (as applicable) should be paid as processing fee while submitting application for TAN.
(Republished with amendments)