TAN registration is required to collect tax deduction or tax collection at source, to remit TDS payments and grant TDS certificates.
TAN or TAN Deduction and Collection Number is an alphanumeric 10-Digit number and is mandated to be hold by all the applicants responsible for Source Tax Deduction (TDS) or Source Tax Collection (TCS) on behalf of the government.
An applicant deducting the tax at source is required to pay the tax deducted to the credit of the Central Government, citing the TAN amount. Salaried employees are not mandated to obtain TAN and deduct tax at source. Though a legal company and other entities may subtract at source at the time of payment such as wages, payments to contractor or subcontractors and payment of lease above Rs 1,80,000 p.a. To obtain TAN applicant must submit the duly applied Form 49B along with the supporting documents and photographs.
Importance of TAN Registration
Applicants are liable for deducting or collecting Tax at source. It enables the applicants to avoid tax penalties by IT Department.
Once a TAN has been received, its validity is for a lifetime. Moreover, on the 15th of July, October, January and May TDS filling must be maid annually. Non-filling of TDS returns within the due date would result in a penalty.
Apply for TAN
TAN Registration or TAN Apply can be done through online and offline. Below are the step by step tutorial for both online and offline procedures.
Apply TAN Online
- Go to the official site of TIN-NSDL
- Under the drop-down box of services, click on TAN
- Under the drop-down box of Apply Online which is located on the left bar of the page, click on New TAN
- Read all the instructions, select your category type and click on Select
- Now you have to fillup Form 49B, mention all the required.
- Choose payment option from DD or Cheque and click on Submit.
- After clicking on submit, payment page will be displayed where you have to pay an amount of Rs 65 to register your TAN.
Apply TAN Offline
- Go to the official site of NSDL or UTIITSL and download Form 49B
- Read the instruction and fill all the details
- Duly sign in the Acknowledgement receipt and DD/Cheque.
- Now send it to your nearest NSDL or UTIITSL office.
Confirmation of TAN Registration
- After the successful registration of TAN a message or email is sent your mobile.
- Click on that link and fill you TAN Registration Number and User Id
- Now click on submit and you can check the status of your TAN Registration
TAN Application Form
Instructions to fill TAN Application form
- All the details must be filled in English only.
- The form must be filled in BLOCK LETTERS by Black Ink only.
- The applicant must leave a blank box after submitting one word on each box.
- Field marks with an asterisk (*) are compulsory to be filled by the applicant. AO code, AO type, AO number must be filled by the applicant.
- In case of thumb impression, it must be attested by a Gazetted Officer or Magistrate under official seal and stamp All the boxes are mandated to filled by the applicant.
- Designation of the individual is mandated to fill
- The resident type must be an Indian in order to fill the form.
- Applicants are suggested to not apply for TAN if he/she has alloted a TAN already.
- Given resident address, mobile number and e-mail id must be correct.
Things Not to Do while Applying Form 49B
- Don't overwrite or make any corrections in the form. If such a case appears then the application form should not be accepted.
- Do not mention POI or POA which are not in the name of the individual.
- Do not mention any additional details in the form like birthmark, rank, marks, designation etc.
- In case of female applicants do not write the Husband's name in the Father's name column.
- Do not abbreviate your names and do not use initials.
- Do not apply for a new TAN if you already have one. If any such case occurs a penalty of Rs 10,000 will be charged to the applicant under the provisions of Section 272B of the Income Tax Act 1961.
TAN Application Fees
Applicants applying for new TAN or Changes / Correction in the existing TAN, are required to pay a processing charge fee of Rs 65+GST