Business Mantra : Faridabad
TAN (Tax Deduction and collection Account Number) is a 10 digit alpha numeric number. All persons who are liable to deduct or collect tax at source are required to apply for TAN No.
Only one TAN is used for different types of payments like Salary, Interest, Dividend, Commission etc. It is illegal to obtain or use more than one TAN. However, different branches/divisions of an entity may have more than one TAN. In case, duplicate TAN has been allotted to any person, he should surrender it by filing “Form for changes or correction in TAN data”.
As per section 203(A), it is compulsory to mention TAN in all TDS Returns, TDS payments, TDS Certificates and other documents as may be prescribed. Failure to quote TAN levies a penalty of Rs. 10000/-.
However, in case of tax deduction u/s 1941 A i.e. sale of immovable property, a person required to deduct TDS can use PAN as such person is not required to apply for TAN.
Where to apply for TAN?
TAN is allotted by the Income Tax Department. The Income Tax Department has authorized various TIN Facilitation Centers which are managed by NSDL, where application for TAN is submitted.
How to apply for TAN?
TAN can be applied by two methods:
- Online (2) Offline
An application for TAN can be made only on Form 49B Which can be downloaded from Income Tax Website (www.incometaxindia.gov.in) or NSDL (www.tin-nsdl.com) or can be photocopied. Then completely filled application form has to be submitted to any nearby TIN Facilitation Center.
Through NSDL-TIN website, online TAN application can be made. If there is any change required in data provided in TAN application form, then such changes can be made by filing “Form for changes or correction in TAN data”, which can also be downloaded from Income Tax or NSDL website. Along with correction form, necessary documents proofs to be submitted which are required for correcting the data.
Documents Required for TAN:-
No documents are required to be submitted along with form for application of TAN. However in case of online submission of application form, acknowledgment generated after filling the form is required to be submitted to NSDL.
Presently for filing the TAN application form fees is Rs. 63/- inclusive of service tax.
TAN application form should be completed in all aspects otherwise, it will not be accepted at TIN center.
On submission of application form, application will receive a 14 digit acknowledgement number through which he can track the status of his TAN application