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What is TAN? How to apply for it?

As per Section 203A of the Income Tax Act 1961, it is mandatory for all asseesee’s liable to deduct TDS to quote this TAN Number in all communications regarding TDS with the Income Tax Department

Failure to do so attracts a penalty of Rs. 10,000. TDS Returns and Payments would not be received by the Banks if TAN No. is not quoted.

What Is TAN?

TAN Number is a 10 Digit Alphanumeric Number and is used as an abbreviation for Tax Deduction and Collection Account Number. 

    ü  Difference between TDS and TCS?

Every Assessee who is liable to deduct TDS required to apply for a TAN No first and shall quote this number in all TDS Returns, TDS Payments and any other communication regarding TDS with the Income Tax Department.

    ü  An assessee is any individual who is liable to pay taxes to the government against any kind of income earned or any losses incurred by him for a particular assessment year.

How to apply for TAN Number?

TAN Number can be applied for online as well as offline. A Payment of Rs. 62 is required to be made for application of TAN No. The Payment can be made by Demand Draft/Cheque/ Credit Card/Debit Card/Net Banking.

For making a TAN Application online, a person shall file his application in Form No. 49B on the website of NSDL.

To apply online for new TAN, applicants can follow the steps mentioned below:

  1. Visit www.tin-nsdl.com/index.html
  2. Select ‘TAN’ under the ‘Services’ dropdown
  3. Click on ‘Apply Online’
  4. Select ‘New TAN’
  5. On the new page, choose from the list ‘category of deductors’ and click on ‘Select’
  6. In doing so, you are redirected to Form 49B
  7. Fill in the form and click ‘Submit’
  8. On confirmation, an acknowledgement screen is displayed which contains

a)    14-Digit acknowledgement number

b)    Status of Application

c)     Name of Applicant

d)    Contact Details (Address, Email ID & Phone No.)

e)    Payment Details

f)      Space for Signature

         9.  The applicant is required to save the acknowledgement and get a printout of it

This acknowledgement duly signed along with Cheque/Demand Draft (if payment is not made through Credit Card/ Debit Card/ Net-banking) shall be sent to NSDL.

Application for TAN can also be applied by procuring the Form from the TIN-FC Centres. On submission of the TAN Application, the applicant would receive a 14 digit unique acknowledgement number from the TIN-FC.


Disclaimer: 

The contents of this article are solely for informational purpose. It does not constitute any professional advice. The author does not represent that the contents of the article are accurate or complete. Neither the Site/Blog 'Your Instasolv' and the author accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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