TAN or Tax (collection and deduction) Account Number is a 10 Digit Alphanumeric number that is used in all communications regarding TDS with Income Tax Department. As per Section 203A of the Income Tax Act 1961, it is obligatory to this TAN Number in all communications regarding TDS with the Income Tax Department. Failure to do so attracts a penalty of Rs. 10,000. Moreover, TDS Returns and Payments are not received by banks if TAN is not cited. You can apply TAN online at the website of the Tax Information Network; however, the process may be done offline as well
When the Central Board for Direct Taxes initiated the pay-as-you-earn-scheme, the idea of TAN came into being. Whenever a person earns income, he/she is obligated to pay income tax to the government. The easiest manner in which the government can ensure that individuals pay taxes is to deduct tax at the source, which is why it’s important for a business owner who has employees to have TAN..
The following legal entities are required to apply TAN –
- Central/State Government/Local Authority/Autonomous Bodies;
- Branch/Division of a Company;
- Individual/ Hindu Undivided Family(HUF);
- Branches of Individual Business (Sole Proprietorship Firm/ Association of Persons/Trusts.
Steps for Apply TAN
Step – I
Visit https://tin.tin.nsdl.com/tan/index.html and select “Online Application for TAN (Form 49B)” which consists
On submission of details via Form 49B, an acknowledgment screen will appear which will consist of
- 14 Digit acknowledgement number
- Status of Application
- Name of Applicant
- Contact Details (Address, Email ID & Phone No.)
- Payment Details – The Payment can be made by Demand Draft/Net Banking /Credit Card/Cheque /Debit Card.
- Space for Signature
Step – II
Select Category of Deductors from the drop down menu and click on “Select Button”;
Step – III
Fill out the requisite details on the form (Fill all mandatory fields (marked with *));
Step – IV
If the data submitted by applicant fails in any format level validation, a response indicating the error(s) will be displayed on the screen;
Step – V
Forms need to be re-submitted after rectifying the error(s);
Step – V
In case form level error(s) do not exists a confirmation screen with data filled by the applicant will be displayed.
Step – VI
In case applicant required any amendment to the data displayed in the confirmation screen, it may choose the edit option.
Step – VII
In case the displayed information is correct, applicant shall choose the confirm option.
Step – VIII
On successful payment of Fees (in case the mode of payment is other than DD or Cheque) an acknowledgment slip will be generated
Step – IX
Applicant shall save and print the acknowledgment and send it to NSDL alongwith requisite documents at
NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Near Deep Bungalow Chowk,
Pune – 411016
The envelope should be superscribed as ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’).