Meaning of TAN
Tax Deduction Account Number or Tax Collection Number This is a 10 digit alphanumeric number issued by the Income Tax Department (we will refer it as TAN).TAN should be received by all those responsible for deducting tax at source(TDS)or who are required to deposit tax at source(TCS).
TAN first 4 digits are alphabets, then TAN next 5 digits are numeric and the last digit is an alphabet.
Jurisdiction code of the TAN is represented by the first 3 alphabets, 4th alphabet is the initial of the name of TAN holder who can be a company, firm, individual, etc. For example TAN allotted to Mr. Shiv of Bokaro may appear as under;
Jurisdiction code Name of the dedicatee
Who can apply TAN?
As discussed above, obtaining TAN requires each person responsible for deducting tax at source from tax. However, a person is required to deduct tax under section 194-IA can use PAN in place of TAN as such a person is not required to get TAN.
Further, the person required to deduct tax under section 194-IB of section 194M will not be required to obtain tax deduction account no. (TAN)
As per Section 194-IB (as inserted by Finance Act, 2017), any person or HUF [who is not required to audit under section 44 AAB of the books of account] while deducting tax at the rate of 5% while making payment Is responsible for Rent of a land or building or to a resident person if the amount of rent is Rs. More than 50,000 for a month or part of a month.
Section 194M [Incorporated by Finance (No. 2) Act, 2019] provides for deduction of tax from the amount of tax paid or deposited to the resident at the rate of 5% a year on contractual work, commission basis. No) An individual or a HUF [whose books of account are not required to be audited under Section 7AB] if the amount exceeds such amount, the Insurance Commission, brokerage referred to as Section 19D or Professional fees. 50 lakhs in a year.
As per Section 203A of the Income Tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN. Section 203A also makes it mandatory to cite TAN in the following documents:
(a) TDS statement
(b) TCS statement
(C) Statement of financial transactions or reportable accounts
(D) Challenge for payment of TDS / TCS
(E) TDS / TCS certificate
(F) Other documents prescribed
The provisions relating to obtaining TAN shall not apply to any person deducting tax under section 194-IA (i.e with consideration of the sale of land/building) and such person as may be notified by the Central Government in this regard.
Consequences of not quoting TAN
Section 272BB (1) provides for penalty for failure to obtain TAN and section 272BB (1A) provides for penalty for quoting the wrong TAN. The penalty is punishable under Section 272BB. 10,000.
Procedure to obtain TAN
There are two ways to apply for TAN: (1) online mode and (ii) offline mode. They are as follows:
Offline – An application for the allocation of TAN should be filed in duplicate in Form 49B and submitted to any TIN-FC. The addresses of TIN-FC are available on the NSDL-TIN website (https://www.tin-nsdl.com).
In the case of an applicant, being a company that has not been registered under the Companies Act, 2013, application for allotment of tax deduction account number specified in Form No. INC-32 (SPICe) under sub-section (1) can be done. ) Section 7 of the said Act for the incorporation of the company.
Online-Online application for TAN can be made from the NSDL-TIN website.
The place from where Form 49B can be obtained
(1) Form 49B can be freely downloaded from the Income Tax Department website (http://www.incometaxindia.gov.in).
(2) It is also available on TIN-FC.
(3) Valid photocopies of Form 79B or legally printed forms are also allowed to be used as per the format prescribed by the Income Tax Department.
The authority has given the right to allocate to Tan
No document is required to be submitted along with the application for the allocation of TAN. However, for online application, the signed acknowledgment generated after filling the form has to be sent to NSDL.
Procedure for online TAN application
Deductors can apply online for TAN on the NSDL-TIN website (https://tin.tin.nsdl.com/tan/index.html)
(1) On confirmation of the correct uploading of the online application, an acknowledgment will be shown on the screen. Acknowledgment includes:
· Unique 14-digit acknowledgment number
· Applicant Status
· Name of applicant
· Contact details
· Payment Details
· Place for signature
(2) The applicant has to save the acknowledgment and get a print of the same.
(3) The applicant should sign the acknowledgment. The signature should only be within the box given in the acknowledgment.
(4) In the case of applicants other than personal, the authorized signatory shall sign the acknowledgment and affix the appropriate seal or seal.
(5) The thumb impression, if used, must be verified by the Magistrate / Notary Public / Gazetted Officer under its official seal and stamp.
(1) An applicant has to pay processing fee which is 55 + service tax (as applicable).
(2) Can be paid by
· Demand draft
· E-payment (for the mode and other procedure applicable in case of e-payment journey https://tin.tin.nsdl.com/tan/form49B.html)
(3) The demand draft/check will be in favor of NSDL-TIN.
(4) The name and acknowledgment number of the applicant should be mentioned on the back of the DD/check.
(5) DD will be payable in Mumbai.
(6) The applicant paying by check will deposit a local check (drawn on any bank) with any HDFC bank (except Dahej) across the country. The applicant will mention TANNSDL on the deposit slip.
An acknowledgment will be displayed on successful payment by e-payment mode. The applicant will save and print the acknowledgment and send it to NSDL as stated in “Submission of Documents”.
Submission of documents:
(A) A duly signed acknowledgment with DD, if any, will be sent to NSDL
NSDL – E-Governance Infrastructure Ltd.,
5th floor, minister sterling,
Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bangla Chowk,
Pune – 411016.
(B) For.AN with envelopes.
(c) It should reach NSDL within 15 days from the date of online application
(D) The application will be processed only on receipt of duly signed receipt and payment.
No separate TAN is required to obtain for the purpose of TCS
The TAN allocated for TDS can also be used for TCS purposes. In other words, there is no need to obtain a separate TAN for the purpose of TCS if the person already holds a TAN for the purpose of TDS.
How to find the nearest TIN-FC?
All TIN-FC addresses are available on the NSDL-TIN website (https://www.tin-nsdl.com).
Once allocated the TAN can be used for all types of deductions and collections. In other words, it is not necessary to apply for a separate TAN if the deductor is to deduct tax from various types of payments such as salary, interest payments, etc.
Inquire about the status of TAN application
After applying for TAN allotment, deductors can inquire about the status of their application by calling the NSDL-TIN website on the status track option and quoting a unique 14-digit acknowledgment number three days after their application. This facility can also be viewed from the Income Tax Department website (www.incometaxindia.gov.in).
Government deductors are also responsible for obtaining TAN
Like non-government deductors, government deductors are also required to apply for a TAN.
PAN cannot be quoted in place of TAN
PAN should never be cited in the area where the TAN is required to be cited. In other words, the deductor/collector cannot provide his PAN in place of TAN. If he does not have a tan, he will have to apply for the same. However, a person required to deduct tax under section 194-IA can use PAN in place of TAN as such a person is not required to obtain TAN.
The taxpayer cannot have more than one TAN
It is illegal to possess or use more than one tan. However, different branches/divisions of a unit may have different tans.
If more than one TAN has been allocated, the TAN being used regularly should be continued and the other TAN (s) immediately canceled using the “Form for change or correction of TAN” Must be surrendered which can be downloaded from NSDL-can be purchased from TIN website or TIN-FC.
The original data was changed when applying for the allocation of TAN
Any change or correction in the data associated with the TAN was reported to the Income Tax Department by filing a “Form for correction of TAN or allotment of TAN for data related to TAN” along with the required fee on any of TAN-FC or NSDL-TIN. should go. Website.
(Republished with an amendment, source- Income Tax Act, Rules and http://www.incometaxindia.gov.in/)