Here is the complete Study material on TAN (Tax Deduction and Collection Account Number ) under Income Tax Act of India
What is TAN under Income Tax?
TAN i.e. Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed.
What is the Format of TAN ?
Given below is an illustrative TAN:
First 3 alphabets of TAN represent the jurisdiction code,
4th alphabet is the initial of the name of the TAN holder.
The next 5 digits of TAN are system generated numbers between 00001 to 99999 .
last character, i.e., the tenth character is an alphabetic check digit.
Who must apply for TAN?
Every person liable to deduct tax at source or collect tax at source is required to obtain TAN. However, a person required to deduct tax under section 194IA (*) can use PAN in place of TANas such person is not required to obtain TAN.
(*) Section 194IA provides for deduction of tax at source from payment on transfer of certain immovable property other than agricultural land.
Why is it necessary to have 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 quoteTAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates and other documents as may be prescribed.
Relevance of TAN
It is mandatory to quote TAN in following documents:
(a) TDS/ TCS statements i.e. return
(b) Challans for payment of TDS and TCS
(c) TDS/TCS certificates
(d) Other documents as may be prescribed
Penalty for Not obtaining TAN
As per section 272BB, failure to apply for TAN or not quoting the TAN in the specified documents attracts a penalty of Rs. 10,000/-.
New TAN Application Procedure
What is the Procedure to obtain TAN
An application for allotment of TAN shall be made in duplicate in Form No. 49B .
A deductor may either make an online application through this website or submit physical TAN Application to any TIN-Facilitation Center (TIN-FC) of NSDL.
Applicants should go through the instructions and guidelines provided in the application form before filling the form.
Addresses of TIN-FCs are available at NSDL-TIN website. Alternatively, one can apply for TAN online at the NSDL-TIN website.
These applications are digitised by NSDL and forwarded to ITD. ITD will issue the TAN which will be intimated to NSDL online. On the basis of this NSDL will issue the TAN letter to the applicant.
What is the Form for applying TAN
Form for applying TAN is Form No. 49B .
Can an application for TAN be made on a plain paper?
No. TAN Application can be made only on Form 49B.
Yes. But typing should be in capital letters with good impression.
If you are submitting the form at a TIN-FC, the TIN-FC will assist you in correctly filling up Form 49B. Incomplete or deficient applications will not be accepted.
How to Fill TAN Form No 49B
Applicants for TAN are required to provide the AO code in their application. This information can be obtained from the Income Tax Office. Click here to Know AO Code and Guidlines
How to Apply TAN Online
Apply Online NEW Application for TAN (Form 49B) : Click here
You can apply for TAN online at the NSDL-TIN website. You can then fill and submit the form online. Once you click on button ‘submit’, an acknowledgment containing a unique 14 digit acknowledgment number is generated on the screen. You should print this acknowledgment, sign it and dispatch it to NSDL at the address mentioned on NSDL-TIN website along with the processing fee which is ` 55 + service tax (as applicable). Payment can be made by DD/cheque, payable at par in Mumbai, favouring NSDL-TIN or by Credit card / Debit card or Net banking.
Charges for obtaining a TAN
A fee of Rs. 65 (Rs. 55 application charge + 18% GST) should be paid as processing fee while submitting application for TAN.
What documents should be submitted alongwith the TAN application?
No documents are required to be submitted along with the application for allotment of TAN. However, where the application is being made online, the signed acknowledgment which is generated after filling up the form should be forwarded to NSDL e-Gov. Detailed guidelines for submission of application are available on NSDL e-Gov – TIN website i.e. www.tin-nsdl.com.
Who will allot TAN?
TAN is allotted by the IncomeTax Department on the basis of the application submitted online at NSDL e-Gov -TIN website or to TIN-FCs managed by NSDL e-Gov. NSDL e-Gov will intimate the TAN to the applicant at the address provided in the application.
How will the new TAN be intimated to the applicant?
An allotment letter is dispatched by NSDL e-Gov at the address provided in Form 49B.
How to Track your PAN Application Status
Refer Link to Track your TAN Application Status : click here
Know Status of Your Credit Card / debit card / net banking transaction for online application Click here
Change & Correct TAN number
Any change or corrections in the data associated with the TAN, should be communicated to ITD by filing up ‘Form for Changes or Correction in TAN data for TAN allotted’ alongwith the necessary fees at any of the TINFCs, or at NSDL e-Gov-TIN website.
Form for Change or Correction in TAN data for TAN Allotted Click here
Apply online for change and Correction of TAN number : Click here
You have to pay Rs 55 +( Goods and Service Tax, as applicable) to NSDL e-Gov/TIN-FC as processing fees while submitting your application at the TIN-FC or making online application.
What is duplicate TAN?
Duplicate TAN is a TAN which has been inadvertently obtained by a person who is responsible for deducting/collecting tax and who already has a TAN allotted to him. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TANs.
In case duplicate TAN has been allotted, which TAN should be used?
In case duplicate TANs have been allotted, the TAN which has been used regularly should be continued to be used. The other TAN/s should be surrendered for cancellation using ‘Form for Changes or Correction in TAN‘ which can be downloaded from NSDL-TIN website or may be procured from TIN-FCs or other vendors.
Form for Change or Correction in TAN data for TAN Allotted Click here
What should I do if I have been allotted a duplicate TAN by oversight?
In case duplicate TAN has been allotted, an application may be made for cancellation of the TAN which has not been used in the ‘Form for Changes or Correction in TAN’ which can be downloaded from NSDL-TIN website or may be procured from TIN-FCs or other vendors.
FAQs on TAN
Is a separate TAN required to be obtained for the purpose of Tax Collection at Source (TCS)?
No. TAN which was allotted for Tax Deduction at Source (TDS) can be used for the purpose of TCS. However, if no TAN has been allotted, a duly filled in Form 49B, alongwith the application fees should be submitted at any TIN-FC.
If I change my address, should I inform ITD or should I apply for a new TAN?
Change of address within a jurisdiction does not change the TAN. However, it may involve a change in the Assessing Officer. Such changes must, therefore, be intimated to ITD so that the TAN database of ITD can be updated. In case of change of address from one jurisdiction to other (e.g. address changes from Bangalore to Mumbai) a new TAN needs to be applied for and previous TAN needs to be surrendered on allotment of fresh TAN.
How can one find out Assessing Officer (AO) Details?
Assessing Officer details are available at NSDL e-Gov – TIN website.
What can serve as proof of TAN in case one has lost the TAN allotment letter?
Printout of the webpage showing details of TAN, from the Income Tax Department’s website can serve as proof of TAN.
If a deductor/collector has a TAN as per the old format or if he has earlier applied, but has not been allotted TAN, what should he do?
TIN-FC will help the deductors/collectors in ascertaining their correct TAN from the database available with them. TAN can also be verified from ITD’s website, wherein there is a facility to find new TAN against old TAN / name and address of the deductor/collector. In case no TAN has been allotted, the deductor will have to file an application in Form 49B along with application fee (` 55 + service tax as applicable) either at any TIN-FC or online at NSDL e-Gov – TIN website.
Where can I find the address of the nearest TIN-FC?
Addresses of all TIN-FCs is available on NSDL-TIN website.
Is it necessary to apply for different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend etc.?
No. TAN once allotted can be used for all type of deductions/collections.
Should Government deductors apply for TAN?
Yes. All Government deductors are also required to quote the TAN on their TDS / TCS / Annual Information Returns.
In case of multiple DDOs, should all of them apply for TAN?
Yes. In such case, the name of the Division; name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN.
Can branches of companies/banks have separate TANs?
Yes. The name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN.
Can a TDS/TCS/Annual Information return be filed without TAN in case TAN has not been allotted?
Quoting of TAN is mandatory in all TDS/TCS/Annual Information returns, whether filed in paper or electronic format. The return, whether in paper or electronic format, will not be received in case correct TAN is not quoted.
Can I quote PAN in place of TAN?
No. PAN should never be quoted in the field where TAN is required to be quoted. The purposes for which PAN and TAN are allotted are different. TAN is a unique identification number which is allotted to persons who are deducting or collecting tax at source on behalf of the Income Tax Department. PAN is a unique number allotted to assessees like individuals, companies etc.
Reference Material on TAN
Form 49B Income Tax : Download : Application for allotment of TAN
TAN Questions and Answers on Tax Deduction and Collection Account Number
Can I use PAN to pay the TDS deducted into government account?
TCS -Tax Collected at Source -Complete Guide
Income Tax Commentary
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