TAN stands for Tax Deduction and Collection Account Number. The Income Tax Department issues a Tax Deduction Account Number or a Tax Collection Account Number. All persons responsible for deducting or collecting the tax must get a TAN number.

TAN Number

TAN (Tax Identification Number), It’s a 10-digit alphanumeric number assigned by India’s Income Tax Department (ITD). All individuals in charge of deducting or collecting the tax must get a TAN number. TDS / TCS returns (including any e-TDS / TCS returns), TDS / TCS payment challans, and TDS/TCS certificates must all include the TAN.

Who needs to apply for TAN?

TAN is mandatory for any company, firm or individual, who deducts and collects tax at source, on the behalf of the Income Tax Department. However, obtaining TAN is not compulsory in the following cases –

1. Under section 194-IA, for tax deducted at source while buying immovable property, you can use your PAN instead

2. Under section 94-IB – tax deducted by a tenant

TAN allotted for TDS can be TCS (tax collected at source) too. TIN facilitation centres do not accept TDS/TCS returns without TAN.

Law Requirement

All persons who deduct or collect tax at source must apply for a TAN under the terms of section 203A of the Income Tax Act. This part also mandates that the TAN be included in all TDS/TCS returns, payment challans, and certificates. A penalty of Rs. 10,000 is imposed for failing to apply for a TAN or complying with any of the other provisions of the clause.

How to apply for TAN?

There are two ways to apply for TAN: offline and online. TAN applications can be submitted online through the NSDL TIN website. In an offline manner, an application for TAN allotment must be submitted in Form 49B to any of the TIN Facilitation centres that receive e-TDS returns. The Income Tax Department’s website has the application form available for download.

Documents Required

Applicants are not required to submit any documentation while applying for a new TAN. If they apply for a new TAN online, the only thing they need to send is a signed acknowledgment slip.

How To Know TAN Details By Using Applicant’s Name

An applicant’s TAN data can also be obtained by using the applicant’s name. Follow the steps outlined below to accomplish this:

1. Visit www.incometaxindiaefiling.gov.in for further information.

2. Select ‘Know Your TAN’ from the drop-down menu.

3. Under the ‘TAN Search’ option, choose ‘Name.’

4. Select Deductor Category.’

5. Choose ‘State’ from the drop-down menu.

6. ‘Name’ and ‘Mobile Number’ are required fields.

7. Continue by pressing the ‘Continue’ button.

8. In the corresponding screen, enter the One Time Password (OTP) issued to the registered mobile number.

9. After that, click ‘Validate.’

10. On the related screen, the details are displayed.

Consequences Of Not Quoting TAN

If the 10-digit alphanumeric TAN number isn’t quoted by eligible persons at requisite places, they will face the prospect of paying a penalty of Rs.10,000 under Section 272BB(1). If a wrong TAN is provided, an identical penalty is imposed on the applicant under Section 272BB. Apart from the above-mentioned points, if a TAN isn’t quoted in places where it’s required, the subsequent might also occur: TDS or TCS returns aren’t accepted by TIN facilitation center Banks to try and do not accept the challans for TDS/TCS payments.

Frequently Asked Questions

1: Is It Necessary To Have TAN?

Ans. All persons that deduct or collect tax at source are required to use for a TAN under Section 203A of the Income-tax Act, 1961. the availability also mandates that each one TDS/TCS/Annual Information Returns, payment challans, and certifications issued include the TAN. TDS/TCS returns won’t be accepted by TIN-Facilitation Centres (TIN-FCs), and challans for TDS/TCS payments won’t be accepted by banks if the TAN isn’t provided. A penalty of Rs. 10,000 is imposed if you are doing not apply for a TAN or don’t quote it within the required paperwork.

2: Who Can Apply For TAN?

Ans. All individuals who are obligated to deduct/collect tax at source on behalf of the Internal Revenue Service must apply for and get a TAN.

3: Are There Any Fees Associated With Submitting A TAN Application?

Ans.  At the time of filing Form 49B, a processing charge of $55 plus G&S tax (if applicable) should be paid at the TIN-FC. If you apply for a TAN online, you can pay by check, demand draught, or credit card, following the instructions on the NSDL e-Gov -TIN website.

4: What Is The Best Way To Find Out About The Status Of My Application? 

Ans. After three days, you can check the status of your application by going to the NSDL e-Gov -TIN website and selecting “Status track” and entering your unique 14-digit acknowledgment number.

5: What’s The Process For Getting A TAN?

Ans.  A Form 49B application for TAN allotment must be completed and submitted to any TIN-FC. TIN-FC addresses can be found on the NSDL-TIN webpage. You can also apply for a TAN online at the NSDL-TIN website.