Tax Deduction and Collection Account Number (TAN) is a unique identification number required for businesses and individuals responsible for deducting or collecting tax at source. TAN is crucial for compliance with tax regulations and for reporting tax deductions to the Income Tax Department.
- Legal Compliance
- Financial Transactions
- Tax Filing
- Identification
Why TAN is Important
Legal Compliance: Essential for fulfilling tax deduction and reporting obligations.
Financial Transactions: Required for various financial activities, including investments, banking, and business operations.
Tax Filing: Necessary for filing accurate and compliant income tax returns.
Identification: Acts as a unique identifier for taxpayers, facilitating easier tracking and management of tax records.
Benefits of TAN
- It is a lifetime-valid unique number
- In the end, deductions including wages, interest, and dividends are made using TAN
- When submitting taxes, the challan type 281 should be used, and the deductor’s name and address should be appropriately typed together with the 10 digit TAN number
- Because TDS return certificates are given by a person or business that holds TAN, the taxpayer has the chance to find out how much tax they have paid
- The taxpayer can also use this TDS certificate as evidence of tax payment in any type of complaint
- All tax documents must contain TAN information.
Checklist for Securing a TAN
- All bank transactions regarding TDS should contain a TAN number
- All TDS/TCS-related forms should appropriately quote TAN numbers
- HUFs and people who are paid a salary are exempt from the requirement to obtain TAN
- Section 272BB(1) of the Income Tax return imposes a ₹10,000 fine for quoting a fraudulent TAN
- Everyone who has obtained a TAN has the ability to modify or correct the TAN data by going to the NSDL official website.
The TAN Registration Process
You can complete TAN registration through both online and offline processes that are explained below.
Offline Mode:
- A Form 49B (duplicate) application for TAN funding must be proposed to any Tax Information Network Facilitation Centre (TIN-FC). On the NSDL-TIN website, you may find the TIN-FC addresses
- If the applicant is a corporation that hasn’t been incorporated under the Companies Act of 2013, they can submit Form No. INC-32 to request the allocation of a Tax Deduction Account Number.
Online Mode:
- The National Securities Depository Limited (NSDL) department’s Tax Information Network (TIN) website can be accessed to receive TAN
- Select Service > Drop-down Menu > TAN > Apply online > New TAN from the drop-down menu on the website
- After selecting New TAN, complete all the necessary fields and then submit
- You will see an acknowledgment screen with the details of payment after choosing the payment method enter the required information
- The candidate must cover the TAN registration costs
- On the other hand, if payment is made offline, the duly signed acceptance receipt and a demand draft (DD) or challan made out to NSDL-TIN should be delivered to NSDL’s office address
- Download the Form 49B from the NSDL website, fill it out with the necessary information, and attach a DD or challan with the NSDL-TIN before mailing it to the NSDL office.
- On the back of the DD/Cheque, the applicant’s name and acknowledgment number should be written
- Upon successful e-payment, an acknowledgment will be shown
- The acknowledgement must be saved, printed, and submitted to NSDL as instructed under ‘document submission’ by the applicant.
Document Submission
- The signed acknowledgment and any necessary DD should be sent to the NSDL address
- Write ‘Application for TAN’ and the acknowledgment number at the top of the envelope
- Within 15 days of the date of the online application, it must reach the NSDL
- Only after receiving a fully signed acknowledgment and payment will the application be processed.
Steps to Track TAN Registration Status
Every applicant can check the status of their TAN application using the ‘track status’ feature, which uses a fourteen-digit acknowledgment number. One can check the status of their TAN by following the guidelines below:
- Visit the Income-tax department’s official Tax Information Network (TIN) website
- Choose the type of application. i.e TAN
- Name > Date of Birth > Acknowledgement Number
- Then one can find out the TAN application’s status
- If the applicant prefers, they can phone the TIN Call Centre at 020 – 2721 8080 to find out the status of their application. Sending an SMS with the keyword NSDLTAN to the number 57575 will also allow you to track the status of the TAN application.
Know Your TAN:
Apart from that, get assistance from an expert for a hassle-free registration.
- Visit the IT department’s official e-filing webpage
- Choose the ‘Know Your TAN’ option
- Choose ‘Name’ or ‘TAN’ from the ‘TAN Search’ menu
- Next, Choose the ‘Category of Deductor’ option
- Name, state, and registered cellphone number should be entered
- Then press ‘Continue’
- In the corresponding screen, fill the OTP that was transmitted to the registered mobile number
- Next, select ‘Validate’
- The screen will show all of the TAN information
- Print it out after you download it, then use it as your TAN certificate.
Documents Required for TAN Registration
- Aadhaar cards or another form of address verification are acceptable
- Name, address, contact information, the signature of the applicant
- LLP or firm incorporation certificate
- The acknowledgment slip is generated after the aforementioned information has been added
- The acknowledgment receipt should be saved and printed for future use
- A credit card, debit card, or net banking option can be used if the payment is to be made online
- If the payment method is offline, a Demand Draft (DD) or challan with the reference number NSDL-TIN must be provided to the NSDL office.
Our TAN Services
- TAN Application: Assist with the application process for obtaining a TAN, ensuring all necessary information and documentation are accurately provided.
- Document Preparation: Help gather and prepare required documents for TAN registration.
- Submission and Follow-Up: Submit TAN applications and follow up with tax authorities to ensure timely issuance.
- Compliance Support: Provide guidance on compliance requirements related to TAN and tax deduction at source.
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FAQ'S
Frequently Asked Questions
TAN (Tax Deduction and Collection Account Number) Registration is the process of obtaining a unique identification number assigned to entities responsible for deducting or collecting tax at source. TAN is required for organizations and individuals who are required to deduct tax at source (TDS) under the Income Tax Act.
TAN Registration is required for:
- Employers: Who deduct tax from employees’ salaries.
- Businesses: That deduct tax on payments to contractors, consultants, or suppliers.
- Financial Institutions: That collect tax on interest payments.
- Individuals: In certain cases where tax is deducted on payments made under various sections of the Income Tax Act.
TAN Registration is crucial for:
- Legal Compliance: Ensuring adherence to tax deduction and collection regulations.
- Avoiding Penalties: Preventing fines and penalties for non-compliance.
- Accurate Reporting: Facilitating correct reporting of TDS to tax authorities.
- Credibility: Establishing credibility and fulfilling statutory obligations.
The TAN application process typically involves:
- Filling Out Form 49B: Complete the TAN application form available from the Income Tax Department or online portal.
- Submitting Documents: Provide required documents, including proof of identity and address of the applicant.
- Paying Fees: Pay the prescribed application fee.
- Verification: Submit the form online or to the designated office for verification.
- Receiving TAN: After processing, you will receive a TAN, which must be used for all TDS-related transactions.
Documents generally required include:
- Proof of Identity: Such as Aadhar card, passport, or driver’s license.
- Proof of Address: Utility bills, lease agreements, or bank statements.
- Business Documents: For businesses, documents such as company registration or partnership deed.
The processing time for TAN Registration typically ranges from 7 to 10 working days from the date of submission of the application, provided all details and documents are correct. Delays can occur due to incomplete forms or additional verification requirements.
If you lose your TAN or face issues with its functionality:
- Contact the TAN Issuing Authority: Reach out to the Income Tax Department or the agency that issued your TAN.
- Request a Duplicate TAN: Apply for a duplicate TAN if necessary.
- Update Details: Ensure all details are updated and accurate in the tax records.
TAN must be used whenever TDS is deducted or collected and reported. This includes:
- Monthly TDS Returns: Filing TDS returns on a regular basis.
- Annual TDS Statements: Submitting annual TDS statements like Form 16 or Form 16A.
TDS Payments: Depositing TDS amounts with the government.
Penalties for not applying for TAN or incorrect use include:
- Fines: Penalties for failure to deduct or deposit TDS as per regulations.
- Legal Consequences: Possible legal actions for persistent non-compliance.
- Increased Scrutiny: Higher scrutiny from tax authorities leading to potential audits.
Yes, TAN can be applied online through the Income Tax Department’s website. The online process involves:
- Filling Form 49B: Complete the online TAN application form.
- Uploading Documents: Upload required documents electronically.
- Payment: Pay the application fee online.
- Submission: Submit the application online for processing.