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Relevant provisions: Section 203A of Income Tax Act, 1961
What is TAN number?
Tax Deduction or Collection Account Number or TAN is a 10-digit alphanumeric number required to be obtained by all persons who are eligible for deducting or collecting tax. According to the Income Tax Act, 1961, it is mandatory to quote TAN allotted by the Income Tax Department on all TDS returns. TDS guarantees that government’s collection of tax is proponed and therefore the obligation regarding paying tax is expanded.
The individual deducting the tax at source is needed to store the tax deducted to the credit of central government- citing the TAN number. Those who are salaried are not needed to initiate TAN or deduct tax at source.
Understanding TAN
Applicability
Every person who deducts or collects tax at source needs to apply for the allotment of TAN
TAN registration
TAN registration can be done online as well as offline.
Registration process for Offline application
An application for allotment of TAN is to be filed in Form 49B and submit two copies to any TIN-FC. Addresses of TIN-FCs are available at the NSDL-TIN website (https://www.tin-nsdl.com). Just in case of an applicant, being a company, which has not registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. SPICe Plus (INC-32) specified under sub-section (1) of section 7 of the Income Tax Act for incorporation of the company.
Registration process for Online application
Step – I: The applicant can apply for TAN online at the NSDL-TIN website (https://tin.tin.nsdl.com/tan/index.html) and select “Online Application for TAN (Form 49B)”
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 – VI: In case form level error(s) do not exists a confirmation screen with data filled by the applicant will be displayed.
Step – VII: In case applicant required any amendment to the data displayed in the confirmation screen, it may choose the edit option.
Step – VIII: In case the displayed information is correct, applicant shall choose the confirm option.
Step – IX: On successful payment of Fees (in case the mode of payment is other than DD or Cheque) an acknowledgment slip will be generated. Following points to be remembered while making payment:
Step – X: Applicant shall save and print the acknowledgment and send it to Protean (formerly NSDL eGov) alongwith requisite documents at
Protean eGov Technologies Limited,
4th floor, Sapphire Chambers,
Baner Road, Baner
Pune - 411015
The envelope should be superscribed as ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’). Acknowledgment and demand draft, if any, should reach Protean within 15 days from the date of online application. Application will be processed only on receipt of duly signed acknowledgment and realisation of payment.
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