TAN stands for Tax Deduction and
Collection Account Number. It is a ten digit alphanumeric number required
to be obtained by all persons who are responsible for deducting or collecting
tax. Under Section 203A of the Income Tax Act, 1961 TAN number
or TAN registration is very important for businesses deducting
tax at source and is required to be quoted in TDS or TCS return.
Who is apply for
TAN?
All those persons
who are required to deduct tax at source or collect tax at source on behalf of
Income Tax Department are required to apply for and obtain TAN.TAN is a
mandatory requirement for those peoples who are responsible for deducting
income tax at source (Section 203A of income tax act). You need to quote this
number in all correspondence to income tax department related to TDS. You also
have to quote TAN in TDS certificates issued to the payee.
Structure or
Format of TAN
Structure of TAN
First 4 digits of TAN are alphabets, the next 5 digits of TAN are numeric and
last digit is an alphabet.
First 3 alphabets
of TAN represent the jurisdiction code, 4th alphabet is the initial of the name
of the TAN holder who can be a company, firm, individual, etc. For example, TAN
allotted to Mr. Mahesh of Delhi may appear as under:
DEL
M 12345 L
1.If the TAN does not
follow the above structure, then the TAN will be shown invalid.
2.The first three
characters represent the city or state where the TAN was issued.
3.The fourth
character of the TAN is the initial letter of the tax deductor.
Relevance of TAN
As per
section 203A of the Income-tax Act, 1961, every person who deducts or collects
tax at source has to apply for the allotment of TAN. Section 203A also makes it
mandatory to quote TAN in following documents:
(a) TDS
statements i.e. return
(b) TCS statements
i.e. return
(c) Statement of
financial transactions or reportable accounts
(d) Challans for
payment of TDS/TCS
(e) TDS/TCS
certificates
(f) Other documents
as may be prescribed
The provisions
relating to obtaining of TAN will not apply to a person deducting tax under
section 194-IA (i.e. from sale consideration of land/building) and to such
person, as may be notified by the Central Government in this behalf.
Procedure to obtain
TAN
There are two modes
for applying for TAN:
(1) Online
mode and
(ii) Offline
mode.
They are as
follows:
OFFLINE—An
application for allotment of TAN is to be filed in Form 49B in duplicate and
submitted to any TIN-FC. Addresses of TIN-FCs are available at NSDL-TIN website
(https://www.tin-nsdl.com).
In case of an
applicant, being a company which has not been registered under the Companies
Act, 2013, the application for allotment of Tax Deduction Account Number may be
made in Form No. INC-32 (SPICe) specified under sub-section (1) of section 7 of
the said Act for incorporation of the company.
ONLINE—Online
application for TAN can be made from the website of NSDL-TIN website.
Application
Procedure for TAN
The deductor /
collector must fill up Area Code, AO Type, Range Code and AO Number.If you
don’t know the these details then click on the Don’t know AO details and Search on City (by
selecting the appropriate alphabet)
Designation of the
person responsible for making payment / collection tax’ field is mandatory to
fill up, wherever applicable.
The address of
applicant should be an Indian Address only.
2) Make the payment
at end of the application through cheque/DD/Credit Card/Net Banking and submit.
Note: Facility
of making payment by credit card / debit card / net banking is not available
for below mentioned categories:-
Central Government
/ State Government and
Statutory / Autonomous
Bodies
4) Applicant can
confirm the data and submit or edit if any changes required in application.
5) After submitting
the final confirmation applicant will see the acknowledge screen which consists
of;
- A unique 14-digit acknowledgment number
- Status of applicant
- Name of applicant
- Contact details (address, e-mail and telephone number)
- Payment details
- Space for signature
6) Applicant shall
save and print this acknowledgment.
7) Send duly signed
(should be in given box only) with seal or stamp(if required) acknowledgment to
NSDL at;
NSDL
e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune – 411016
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune – 411016
Points to be
noted while sending the acknowledgment;
# Top of
envelope above address kindly write “Application for TAN- numeric
Acknowledgment No.”
# Acknowledgment should be reaching NSDL within 15 days from date of application.
# Acknowledgment should be reaching NSDL within 15 days from date of application.
5. Fee for applying
TAN and other payment related details are;
a. The fee for
processing TAN application is Rs. 65
b. Payment can be
made by
- demand draft or
- cheque or
- credit card / debit card or
- net banking
c. Demand draft /
cheque shall be in favour of ‘NSDL – TIN‘.
d. Name of the
applicant and the acknowledgment number should be mentioned on the reverse of
the demand draft / cheque.
e. Demand draft
shall be payable at Mumbai.
f. Applicants
making payment by cheque shall deposit a local cheque (drawn on any bank) with
any HDFC Bank branch across the country (except Dahej). The applicant shall
mention TANNSDL on the deposit slip. List of HDFC Bank Branches.
g. Credit Card /
Debit Card / Net Banking payment
h. Facility of
making payment by credit card / debit card / net banking is not available for
below mentioned categories:
- Central Government / State Government and
- Statutory / Autonomous Bodies
You can also check
the status of the application by quoting acknowledgement number at https://tin.tin.nsdl.com/pantan/StatusTrack.html.
See the image below
Need any assistance than
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