The Income Tax Department of India provides a 10-digit TAN (Tax Deduction and Collection Account Number) for all business owners. This number must be quoted in all documents pertaining to TDS (Tax Deducted at Source). This includes TDS challans and certificates. In case the TAN has not been quoted, you cannot claim your TDS when filing for your IT returns.
Individuals can make use of the same TAN for both TDS and TCS (Tax Collected at Source). The NSDL-TIN is the government body that is responsible for issuing your TAN. So, documents that have to be submitted or payments that have to be made should be addressed to the NSDL-TIN, which is located in Mumbai.
As a business owner, you should make sure that you apply for a TAN before you hire any employees or vendors for your operations.
How Can I Apply for TAN?
There are two types of applications that are submitted for a TAN – one is for a new TAN and the other one is for a change or a collection.
- When applying for a new TAN: You can apply for a new TAN online or offline. For this, you have to fill up an application form for a fresh TAN. The form asks for details such as an address, name, nationality, contact number, PAN, etc.
- When applying for a change in the allotted TAN: You will have to submit a correction or change form, which is similar to the one mentioned above. The only difference is that this form has additional rows to fill in the changes that you want to make.
If you are planning to apply for a fresh TAN, there are two options as mentioned above:
- Online: To apply online, you can log on to the NSDL-TIN website. You will get an acknowledgement once the form has been filled and submitted.
- Offline: If you wish to apply for a TAN offline, you have to submit Form 49B. Fill up the hard copy of the form and submit it at the nearest TIN-FC (TIN Facilitation Centre).
You can get your Form 49B from the following sources:
- Download it for free from the IT Department website
- Collect the form from a TIN-FC
You must print or get a photocopy of the document before filling it up. Keep the original with you and submit the copy when applying for a TAN.
The standard fee collected for a TAN application is as follows:
- New TAN – Rs.65
- Correction/Change – Rs.63
Along with the application form, you will have to submit this fee using any of the following options:
- Issue a demand draft (DD) in favour of NSDL-TIN. The DD must be payable in Mumbai. Mention your name, along with the 14 digit acknowledgement number on the back of the DD.
- You can provide a local cheque that is issued in favour of NSDL-TIN. It should be dropped at any HDFC branch.
- Online payments can be made using a debit card, credit card or net banking.
If you choose to make the payment using a credit card or debit card, remember that you will be charged an additional fee of 2% of the total amount. In the case of net banking, an additional fee of Rs.4 + GST is chargeable.
What Documents Are Required For TAN Application?
For individuals, no document needs to be submitted besides the application form and the fees when they are applying online. If you are applying offline or through an agent, you have to submit KYC documents, including:
- A passport-sized photograph
- Adhaar card for address proof
In the case of a partnership firm, here is the list of documents that you will have to submit along with your application form:
- A duly filled and signed application form
- A passport-sized photograph of the authorised partner
- ID proof of all partners. Copies must be made on an A4 paper
- Address proof for the current office space. The copy must be taken on an A4 size paper
- The latest partnership deed
- Account statement of the company for the last three months
- Registration certificate for the business
- KYC details of one partner, including two passport-sized photos, government-issued ID proof, and address proof.
- All the copies that are submitted for a TAN application should be taken on an A4-sized paper
- They must all be self-assessed using blue ink
Document Submission after Online Application
Once you have submitted the application online, you will receive an acknowledgement, which includes:
- A unique 14 digit number
- Status of your application
- Name of the applicant
- Contact details
- Payment details
- Space to provide your signature
This acknowledgement should be printed and saved. Thereafter, sign the printed acknowledgement in the required box. In the case of a partnership firm, the authorised partner must sign and affix the stamp or seal.
In case the applicant is using a thumb impression, the acknowledgement should be attested by a notary/magistrate or a gazetted officer with an official stamp.
Once this acknowledgement has been signed and attested, it should be submitted along with a DD or check to the following address:
NSDL e-Governance Infrastructure Limited,
Mantri Sterling, Plot No.341, Survey No.997/8,
Model Colony, Need Deep Bungalow Chowk, Pune- 411016.
On the envelope, you must mention ‘Application for TAN along with the 14 digit acknowledgement number’
For your application form to be processed, you must make sure that the acknowledgement reaches the NSDL office within 15 days from the date of submitting the online application.
How to Check the Status of the Application?
After the application has been submitted, you can check its status on the NSDL-TIN website. There is a status track option, where you can add your 14 digit acknowledgement number. You can check the status after three days of submitting the acknowledgement to the NSDL-TIN office.
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Q. Who should apply for a TAN?
Ans. Any non-government or government entity, individual or organisation, which is responsible for deducting TDS, must apply for a TAN. This number must be quoted in all the TDS/TCS certificates and payment challans to get the returns.
Q. Can I use PAN instead of TAN?
Ans. No, a PAN (Permanent Account Number) should never be quoted in the field where you are required to quote the TAN. In case you still do not have a TAN, make sure that you apply for the same. There is one exception to this rule. Any individual, who must make tax deductions under section 194-IA, 194-IB or 194 M, is allowed to use PAN instead of TAN.
Q. Can I have more than one TAN?
Ans. No, it is illegal to hold more than one TAN. Only different branches of a single entity may have a separate TAN. In case you have been allotted more than one TAN, it is advisable to continue using just one that is regularly quoted in all returns. The other TAN should be surrendered by submitting a cancellation or correction form on the NSDL-TIN website. It can also be obtained from your nearest TIN-FC.
Q. How should I change any information that was provided at the time of applying for a TAN?
Ans. You may have changed your address, contact details or name after applying for a TAN. This must be notified to the IT department immediately. You can do this by filling up a form for TAN change or correction online. You can also obtain the document from the nearest TIN-FC and submit it with the necessary changes.
Q. What happens if one does not quote a TAN while filing returns?
Ans. According to section 272BB (1), you can be charged a penalty for not obtaining your TAN. Under section 272BB (1A), you will be charged a penalty even for quoting the TAN incorrectly. This penalty can go up to Rs.10,000. So, it is best to apply for a TAN if you need to quote it for tax deductions.