If you are responsible for deducting Tax Deducted at Source (TDS) on various payments, obtaining a TAN (Tax Deduction and Collection Account Number) is mandatory. TAN is required to ensure that the tax deducted is correctly recorded and reported to the Income Tax Department. This guide will walk you through the process of applying for a TAN, understanding the procedure, and how to handle the acknowledgment and payment details.
What is TAN and Why is it Required?
A TAN is a unique 10-character alphanumeric code that is used by entities that are required to deduct or collect TDS. Every person or entity (such as companies, firms, or individuals) that is responsible for deducting or collecting TDS must obtain a TAN. This number helps ensure that TDS payments are correctly accounted for and reported to the government.
How to Apply for TAN?
You can apply for a TAN either online or offline. The application process is straightforward, but it is important to fill out the required form carefully.
- Application Procedure (Online)
To apply online for a TAN, follow these steps:
- Fill out Form 49B: This form can be accessed online at the official TIN (Tax Information Network) website. Ensure that all fields are completed accurately.
- Check for Errors: After completing the form, review the information to ensure that all details are correct. If there are any errors, make the necessary corrections before submitting the form.
- Confirmation Screen: Once you submit the form, a confirmation screen will appear showing all the details you entered. You can either edit the details or confirm them.
- Acknowledgment: After confirming your details, an acknowledgment screen will be displayed. This acknowledgment will include:
- A unique 14-digit acknowledgment number
- Your name and contact details
- The status of your application
- Payment details
- A space for your signature
- Print and Sign: Save and print the acknowledgment. Sign it in the space provided.
- Submit the Acknowledgment: The signed acknowledgment, along with any demand drafts (if applicable), must be sent to the NSDL (National Securities Depository Limited) at their Pune address.
- Application Procedure (Offline)
If you prefer to apply in person, visit your nearest TIN facilitation center. There is no need to submit supporting documents for offline applications. You can submit the filled Form 49B at these centers for TAN allotment.
Payment Details and Processing Fee
The processing fee for applying for a TAN is Rs 77 (Rs 65 application charge + 18% GST). This fee is non-refundable, even if the application is rejected. You can make the payment via demand draft or cheque in favor of NSDL-TIN.
Once your application is submitted, the Income Tax Department will verify the details. If everything is in order, your TAN will be issued, and the details will be sent to your address or emailed to you (in the case of online applications).
Important Tips for Filling Out Form 49B
When filling out Form 49B for TAN application, keep the following points in mind:
- Use English Only: The form should be filled in English and in capital letters.
- Complete the Form: Ensure that all fields are filled in completely. Any blanks or incomplete sections could delay the process.
- Include Designation: The individual responsible for filing taxes must provide their designation.
- Indian Address: Make sure to mention an Indian address in the application form, as the TAN details will be sent to this address.
- Assessing Officer Information: If you do not have the details of the assessing officer, you can obtain them from the income tax office.
After Submission of Form 49B
Once you’ve submitted the form online, you will receive a confirmation. Make sure to print the acknowledgment and sign it before mailing it to NSDL for processing. If you apply offline, your application will be processed directly at the facilitation center.
Tracking TAN Details
If you want to know the status or obtain details of your TAN after applying, you can do so via the Income Tax Department’s e-filing portal:
- Visit the e-filing portal: Go to the official website and find the "Know TAN Details" option under the Quick Links section.
- Enter Required Information: You will be asked to provide the name of the deductor, the state, and mobile number.
- OTP Verification: Once you provide the details, an OTP will be sent to your mobile number. Use this OTP to validate your request.
- View TAN Details: After successful verification, you will be able to view your TAN details. A list of records matching the deductor’s name will appear. You can click on the relevant record to access your TAN.
Conclusion
Applying for TAN is a crucial step for anyone responsible for deducting TDS. The process is simple and can be completed online or in person at designated facilitation centres. Whether you are an individual or a business, ensure that your TAN application is filled out correctly and submitted on time to avoid any delays in the deduction and reporting of taxes. By following the steps mentioned in this guide, you can obtain your TAN smoothly and remain compliant with the tax regulations.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc
