TAN number is assigned to everyone having the authority to collect income tax on behalf of the Income Tax Department (ITD). TAN is a 10 digit account number which has to be possessed by everyone who can deduct tax on behalf of the ITD.
Like PAN or Permanent Account Number is a unique number assigned to all taxpayers, similarly, TAN is a unique 10 digit number assigned to all entities which have the authority to deduct and collect income tax on behalf of the Income Tax Department. Wherever TAN needs to be quoted, quoting of PAN at those places is a strict no since both these numbers are meant for totally different purposes. Quoting the TAN is compulsory while filing TDS and TCS returns for both paper and electronic modes.
TAN or Tax Deduction and Collection Account Number is a 10 digit account number that all assessee liable to deduct tax on behalf of the Income Tax Department need to possess. This number is to be quoted in the TDS that they file and all communication regarding taxation, with the Income Tax Department.
A fine of Rs.10,000 is imposed on entities which do not obtain this number despite deducting TDS. Also, banks have the authority to deny transactions with respect to taxation in case TAN is not quoted by the assessee.
TAN is to be applied for by both private as well as public sector enterprises that deduct tax on behalf of the Income Tax Department.
Application for new TAN can be made by filling and submitting form 49B at any of the TIN facilitation centers meant for receiving e-TDS returns. TAN is allotted to such applicant entities by the Income TAX Department. TAN can be applied for either by visiting the Income Tax Department or by making online application at the Income Tax official website.
Application for issue of TAN can only be made via form 49B. In case of physical applications, no supporting documents are required to be furnished to the Income Tax Department. However, for online application, the acknowledgement received after submitting form 49B is to be saved and sent to the Income Tax Department as proof.
Form 49B is a long application form consisting of various types of information. Listed below are the contents of the form that need to be filled and submitted.
Form 49B has a lot of sections that need to be filled carefully for your TAN application to be accepted. Listed below are some important points that you need to keep in mind while filling form 49B.
Once form 49B is filled and submitted, the Income Tax Department verifies the submitted details. In case the application looks good and correct, NSDL will intimate the new TAN details at the address indicated in form 49B or will send across an email with TAN information in case where online application has been made.
If TAN application is being made online then the print of the acknowledgement received needs to be sent to the Income Tax Department. Acknowledgement of TAN is received as soon as form 49B is submitted to the NSDL website. For physical filling and submission of form 49B, no other accompanying document is required.
Fee for Tan Application:
An application fee of Rs.50 plus service charges applicable are charged while applying for new TAN. This fee is non-refundable in case your application has an error and is rejected.
Details entered in form 49B for TAN application can be rectified by filling and submitting a correction form. Form for correction or change in TAN data can be used for the same. The form is available on the website of the Income Tax Department.
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