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The Tax* Deduction and Collection Account Number(TAN) is important while engaging in TDS transactions. It is required while deducting TDS and further during any verification processes. Payments without a valid TAN can result in severe penalties. With the advancement in technology, you can apply for TAN and make TDS payments with TAN online. It is a simple and easy procedure that is less time-consuming. Here is a detail about it for your reference.
Before we know the TAN application procedure and download TAN online procedure, let us understand what TAN means.
What is TAN?
The Tax Deduction and Collection Account Number(TAN) is a 10-digit alphanumeric number unique to everyone or an entity and is allotted by the Income Tax Department. It is important for collecting or deducting tax, filing TDS returns and receiving TDS certificates. Section 203A, Income Tax Act 1961, states that quoting the TAN is mandatory for all TDS statements. Therefore, any individual deducting the tax on behalf of the Income Tax Department should have a valid TAN. And failure to have one can result in a penalty charge of ₹10,000.
The Income Tax Department has introduced an online facility to help the deductors apply for a new TAN and make changes to the existing TAN if necessary to incorporate them into their e-TDS statements.
How to Apply for the Issuance Of New TAN?
Form 49B is the application used by a deductor who does not have the TAN or has never applied for it. The applicant should fill out the Form 49B application online. It can be either by making an online application through the Tax Information Network(TIN) or submitting the application form to any TIN facilitation centre with a biometric-based system of operation.
Here are the essential steps to apply for TAN online:
- Visit the NSDL - TIN website - https://tin.tin.nsdl.com/tan/.
- Click 'Online Application for TAN(Form 49B).
- The applicant can fill out the required information online.
- In the end, the applicant can revise and rectify any errors and re-submit the form.
- On submitting the form, the system will display a final confirmation screen with the information provided by the applicant.
- The applicant can either confirm or edit if any further changes are required.
- Complete the form and make the required payment.
Payment for the TAN Application
The acknowledgement and payment must reach NSDL within 15 days of the online application. The payment can be made using the following methods:
- Demand draft
- Cheque
- Debit or credit card
- Net banking
If the payment is made using a demand draft or cheque, it should be in favour of 'NSDL-TIN'. The applicant should write the acknowledgement number and the applicant's name on the reverse side.
The option of using the debit card, credit card and net banking payment applies to only the central government, state government, and statutory and autonomous establishments. In addition, applicants using a debit card or credit card will have to pay an additional charge of up to 2% of the applicable fee plus the applicable taxes. And the applicants using the net banking facility should pay an additional charge of ₹4 plus additional taxes.
TAN Application Online Acknowledgement
Upon successful completion of the payment, the system will provide the acknowledgement. It will contain the
- A 14-digit unique acknowledgement number
- Name of the applicant
- Status of the applicant
- Payment details
- Contact details
- Space for providing the signature.
The applicant should save and print the application. Furthermore, the applicant should sign or provide the left thumb impression in the space provided in the acknowledgement form. And, if the applicant is an organisation, the authorised signatory will sign in the respective space provided.
If the applicant provides a thumb impression, the application requires an attestation by the Magistrate, Gazetted Officer or a Notary Public and their official stamp and seal.
Pointers to Remember
Here are a few pointers to remember while filing Form 49B.
- The applicant should file Form 49B in English and use capital letters.
- There should be no blanks or pending sections.
- The applicant should provide the exact details of the assessing officer.
- The applicant or the deductor should provide the exact details about the area, area code and district.
- The deductor's address should be within Indian geographical boundaries.
How to Know Your TAN Status?
The applicants can track the status of the TAN application by providing the unique 14-digit acknowledgement number on the NSDL - TIN website. It will be available 3 days after the application.
How to Know Your TAN Details Online?
TAN download is a simple process. The deductor can undertake the TAN certificate download online using the Name or TAN.
Using Name:
- Navigate to https://www.incometax.gov.in/iec/foportal/
- Choose' Know TAN Details' on the 'Quick Links' tab.
- Choose 'Name' below the 'TAN Search' option.
- Choose the 'Category of Deductor'.
- Choose 'State'.
- Enter 'Name'.
- Enter 'Registered Mobile Number'.
- Click 'Continue'.
- Provide the 'One Time Password' and click on 'Validate'.
The system will display the TAN details on the screen.
Using TAN:
- Navigate to https://www.incometax.gov.in/iec/foportal/
- Choose' Know TAN Details' on the 'Quick Links' tab.
- Choose 'TAN' below the 'TAN Search' option.
- Choose the 'Category of Deductor'.
- Provide 'TAN of Deductor'.
- Choose 'State'.
- Enter 'Registered Mobile Number'.
- Click 'Continue'.
- Provide the 'One Time Password' and click on 'Validate'.
The system will display the TAN details on the screen. Therefore, to know your TAN number verification is a simple and effortless process.
Conclusion
TAN is important information required by every tax deductor in India. Applying for it is a simple process online. The applicants must provide the required details on the respective web portal, pay the processing fees and send the acknowledgement form for the verification process. Furthermore, the TAN details are available online for future reference and can be accessed anytime.
L&C/Advt/2022/Dec/3083
