ONLINE TAN APPLICATION IN INDIA
Every person who is required to deduct TDS (Tax Deducted at Source) or collect TCS (Tax Collected at Source) on behalf of another person must obtain a TAN (Tax Deduction and Collection Account Number). To obtain a TAN, the person must file Form 49B. Here are some additional details regarding the TAN application process and its importance
WHAT IS TAN?
TAN is a unique 10-digit alphanumeric number issued by the Income Tax Department of India. It is required for all entities responsible for deducting or collecting tax at source.
DOCUMENTS REQUIRED FOR TAN APPLICATION
For individuals, there is no need to attach any documents. Verification is done automatically through Aadhaar authentication. To apply for a Tax Deduction and Collection Account Number (TAN) offline or through an agent, the following documents are required
- A passport-sized photograph
- Adhaar card for address proof
In the case of a partnership firm, here is the list of documents that you will have to submit along with your application form:
- A duly filled and signed application form
- A passport-sized photograph of the authorized partner
- ID proof of all partners. Copies must be made on an A4 paper
- Address proof for the current office space. The copy must be taken on an A4 size paper
- The latest partnership deed
- Account statement of the company for the last three months
- Registration certificate for the business
- KYC details of one partner, including two passport-sized photos, government-issued ID proof, and address proof.
HOW TO APPLY FOR TAN APPLICATION
ONLINE APPLICATION
- Visit to the NSDL (Protean) website and select online application for TAN (form 49B).
- Choose the appropriate category of deductor from the drop-down menu and click “select”
- Fill out the form carefully. Ensuring all details are accurate and complete.
- Submit the form and make payment online
- Save and print the acknowledgement for future reference.
OFFLINE APPLICATION:
- Download the TAN application form (49B) from the protean website or obtain it from the nearest TIN-FCs.
- Fill out the form in blocked letters. (preferable in English).
- Submit the form to the nearest TIN-FCs.
- Pay the processing fees at TIN-FC counter.
IMPORTANT NOTES:
- Ensure you have all necessary documents and information before applying.
- Verify your details carefully before submitting the form.
- Keep a copy of acknowledgement for future reference.
HOW TO TRACK TAN STATUS
Applicant need the acknowledge number for check his TAN status, following are the steps for track TAN status:
- Open NSDL portal in browser
- Then, tab into the TAN option
- you will see a “know your TAN application status” when you select this option then, choose your application type.
- And fill the acknowledge number
- After fill acknowledge number click on submit.
- From these few steps applicant can check his TAN application status
WHO CAN APPLY FOR TAN?
When an entity pays a salary or commission to another entity, it is required to have a Tax Deduction and Collection Account Number (TAN). The types of entities that need to obtain a TAN include
- Individuals
- Hindu Undivided Families (HUF)
- Companies and Firms
- Central or State Governments
- Sole Proprietors
- Associations of Persons
- Trust
FAQs
Q1.What is TAN?
Ans.TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alpha-numeric number issued by the ITD.
Q2.Who needs to obtain TAN?
Ans.TAN must be obtained by all persons responsible for deducting tax at source or who are required to collect tax at source. It is compulsory to quote TAN in TDS/TCS return, any TDS/TCS payment challan, TDS/TCS certificates and other documents as may be prescribed in communications with the ITD. However, a person required to deduct TDS as per Section 194IA or Section 194IB or Section 194M, can quote PAN in place of TAN.
Q3.Do I have to be a registered user on the e-Filing portal to use the "Know TAN Details" service?
Ans.No. Both registered and unregistered users can use this service. It can be accessed pre-login from the e-Filing portal homepage by clicking Know TAN Details.
Q4.For what purpose would I need to use my deductor TAN details?
Ans.It is a good practice to verify the TAN of anyone who deducts tax from source (known as TDS) on your behalf. Refer to your Form 16/16A/26AS, and you will see the TDS details for the financial year. Using the Know TAN Details service, you can verify if the amount was deducted by the right person. In addition, you need to quote the TAN when filing your income tax returns in case of any TDS.
Q5.. What if my employer has not obtained TAN?
Ans.The employer will be liable for penalty under the relevant section of the Income Tax Act, 1961 for failure to obtain and/or quote TAN. Further, the employer will not be able to deposit TDS (if deducted) and will also not be able to file TDS statement for the same. If your salary is in a taxable bracket and your employer has not deducted TDS, you may have to pay self-assessment tax and/or advance tax as applicable.
Q6.Is it mandatory for government deductors to apply for TAN?
Ans.Yes.
Q7.Is a separate TAN required to be obtained for the purpose of Tax Collection at Source?
Ans.In case a TAN has already been allotted, no separate application needs to be made for obtaining TAN. The same number can be quoted in all returns, challans and certificates for TCS.
Q8.What is the purpose of TAN?
Ans.It tracks the address of taxpayer. it is required on the TDS return.
Q9.Can TAN be canceled?
Ans.Yes, TAN can be canceled if it is no longer required, such as in cases of closure of business. A cancellation request can be submitted through the NSDL website or TIN-FC.
Q10..Is there any validity period for TAN?
Ans.No, TAN does not have a validity period. Once issued, it is valid for a lifetime unless surrendered or canceled.
Q11.Are there any penalties for not having a TAN?
Ans.Yes, failure to obtain a TAN or quoting an incorrect TAN can attract a penalty of INR 10,000 under Section 272BB of the Income Tax Act.
