TAN Number

The Tax Deduction and Collection Account Number or TAN is important for those who are collecting or deducting tax at the source. If those individuals do not apply or obtain TAN number, a penalty of ₹10,000 is applicable. Any individual paying a commission or salary is required to obtain TAN.

 In this article, let’s know what a TAN is, the TAN number application and correction process and its various uses.

What is TAN?

The Income Tax Department and the Central Government provide an alphanumeric number of 10 digits. It is the responsibility of every person collecting tax at source (TCS) or deducting tax at source (TDS) to have TAN. Every person gets a unique TAN number. According to Section 203A of the IT Act, 1961, the TAN number is required to be quoted on all the TDS returns that are filed, Annual Information Return, certificates, payment, and other relevant documents.

 TAN is an acronym for Tax Deduction and Collection Account Number. This number is a significant part of the Indian tax compliance system under the rules of Indian laws.

 In any case, if an individual does not quote the TAN or apply for a TAN number or does not mention the TAN in the required documents, the individual will have to face a penalty of ₹10,000.

 Please keep in mind that a PAN number cannot be mentioned in a field where TAN has to be mentioned. Both these numbers serve a different purpose and cannot be used interchangeably. TAN is a unique number that is given to the individuals who are collecting or deducting tax at source on the Income Tax Department’s behalf, whereas PAN is a unique number that is given to individual assessees and companies.

Who Should Apply for a TAN Number?

If any individual is paying a commission or salary to anybody else, he must have TAN. This includes the state or central government or any local authority as well. It can also be a branch, company statutory, an autonomous body, an individual or a division of a company, sole proprietor, a Hindu Undivided Family, trusts, or associations of persons.

How to Apply for a TAN number?

It is vital for every person to apply for TAN, and there are two ways to apply for your TAN number: online and offline.

Offline Application for Allotment of TAN

An individual can apply for the allotment of TAN through the offline mode if one is not well versed with the online language. The applicant has to fill out a copy of Form 49B and submit it to a Tax Information Network (TIN) Facilitation Centres. If an applicant company is not registered under the Companies Act, 2003, the application has to be filled with Form No INC-7. This detail is mentioned in the Act of incorporation of the company in Section 7, sub-section (1).

 After the application has been submitted, the processing fee has to be paid at the TIN-FC counter in cash. The fee is payable via cash, cheque, or a demand draft.

Online Application for Allotment of TAN

Authorities provide both online and offline ways to apply for the allotment of TAN. However, most of the applications today are sent through the online mode. The single-window services of the website have made the online application process convenient.

 A deductor who wants to apply for TAN can visit the official NSDL-TIN website. The stepwise process is as follows:

 Step 1: Head to the NSDL-TIN website.

Step 2: A ‘Register Yourself’ page will appear on the screen. Upload the required information. Make sure that you submit only the correct information.

Step 3: After the application form has been submitted, a fee of ₹65 has to be paid. You can make the payment via debit card, credit card, or net banking.

Step 4: After you have made the payment, you will receive a 14 digit acknowledgement number, applicant’s name, the status of the application, payment details, contact details, and a space for signature.

 This acknowledgement should be printed out, signed and sent to the NSDL at the NSDL address provided during submission. A provision for thumb imprints is also provided. However, it has to be attested and verified by the competent authorities, including Gazetted Magistrates and officers.

 Ensure that this acknowledgement is delivered to the NSDL within 15 days of the online submission. Individuals who pay the processing fee via debit cards, credit cards, or net banking will be given the TAN within five business days.

How to Obtain Form 49B?

Many applicants face the problem of inadequate information regarding the availability of this form. The form can be obtained in the following ways:

• The form is downloadable from the official IT website for free.
• The form can also be obtained from any TIN-FC centre for free.
• One can also use the photocopy of the form as it is accepted by the NSDL centres.

 After submitting the form with the information intact, you will receive the TAN number when your request is processed.

 Please note that you do not have to submit any document along with this application form while applying offline.

TAN Processing Fee

The processing fee for a TAN application is ₹65, out of which ₹55 is the application charge, and the remaining 18% is the GST tax (Goods and Services Tax). This fee will not be refunded even if your application is rejected. A cheque/demand draft has to be drawn in favour of NSDL-TIN.

 The department will verify the details once the form is submitted. If the verification is successful, the TAN details will be sent to the applicant’s address by the NSDL, obtained from Form 49B. The TAN details can even be sent via email for the online applications.

Documents Required for TAN Application

You do not have to submit any document when submitting your application for the allotment of TAN. However, if you are applying for TAN online, you would have to sign/attest the acknowledgement and forward it to the NSDL address. 

Use of TAN Number

Here’s how a TAN number is used for different income tax processes. 

• TAN is used for deductions like dividends, interest, salary, etc.
• It has its use in certificates, challans, and returns.
• It automatically captures the entire address of the person who subtracts the tax on the IT department’s behalf. It also entails the Postal Index Number, which is in the records of the Income Tax Department.
• Having more than one TAN is illegal. However, different divisions or branches of a collector are eligible to apply for a separate or unique TAN for each division or branch.

Correction of TAN

For all problems related to TAN, or if you want to make any corrections or changes in your existing TAN particulars, you can fill out a change request form available on the NSDL website. You can also provide your TAN for the purpose of cancellation by using the Correction in TAN or Form for Changes.

 The following documents will be required while submitting your change request application:

• Proof of TAN currently in use
• Proof of TAN, which is being given for cancellation
• Printout of TAN details or the TAN allotment letter
• Required documented proof that supports your request to correct or change the particulars in your TAN.

Know Your TAN Details

People who are not able to find their TAN number or have misplaced it can check the TAN details online by following these steps:

• Head to the official website of the IT Department and log into it. Then, select ‘Know your TAN’.
• A new page will appear on the screen with the option ‘TAN search’. Now, select ‘Name’.
• Choose ‘Category of Deductor’.
• Select your ‘State’ (for jurisdictional purpose), insert your ‘Name’ and your registered mobile number.
• Click on ‘Continue’.
• On the next page, insert the OTP sent to your registered mobile number in the designated column.
• Select ‘Validate’ to finalise the process.
• Your TAN details will be displayed on the next page.

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