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All About TAN

All About TAN – Registration, Online Application & Documents

What is TAN?

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. 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.

Since last few years ITD has revised the structure of TAN. It is a unique 10 digit alphanumeric code. Accordingly, they have issued TAN in this new format to all existing TAN holders.

To facilitate deductors find their new TAN, ITD has now introduced a search facility in their website (www.incometaxindia.gov.in). Through this facility deductors can search on their name and old TAN to find the new TAN. Deductors are advised to find the new TAN from this site before it is incorporated in their e-TDS return file to avoid any inconvenience at the time of furnishing e-TDS return.

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.

What are the types of TAN applications?

There are two types of TAN Applications:

Application for issuance of new TAN (Form 49B)

  • This application form should be used when deductor has never applied for a TAN or does not have a TAN.

Form for change or correction in TAN data for allotted TAN

  • This application form should be used by deductors in case they want a change or correction in data associated with their TAN.

How to apply for new TAN?

Application Procedure

  • An applicant will fill Form 49B online and submit the form. Deductor may either make an online application through TIN (Tax Information Network) or submit physical TAN application to any TIN-Facilitation Center (TIN-FC) of NSDL
  • If there are any errors, rectify and re-submit the form
  • Confirmation screen with data filled by the applicant will be displayed
  • Applicant may either edit or confirm the same

Acknowledgment

  • On confirmation, an acknowledgment screen will be displayed. The acknowledgment 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
  • Applicant shall save and print this acknowledgment
  • Signature / left thumb impression should only be within the box provided in the acknowledgment. In case of applicants other than ‘Individuals’, authorised signatory shall sign the acknowledgment and affix appropriate seal or stamp
  • Left hand thumb impression, if used, should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp

How can I track the status of my TAN application?

Applicants may track status of their TAN application using 14-digit unique Acknowledgment Number after three days of application using the status track facility on TIN.

How is TAN issued?

Applications for Form 49B received by NSDL are digitized and forwarded to ITD. ITD will issue the TAN which will be intimated to NSDL online and NSDL will then issue TAN letter to applicant.

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 ` 10,000/-.

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