Tax Deduction Account Number (TAN) - Facts you should know
TAN or Tax Deduction and Collection account number is a unique ten digit alpha-numeric number required to be compulsorily obtained by all persons who are responsible for deducting or collecting tax at source on behalf of Income Tax Department.
Section 203A of the Income tax Act, 1961 makes it mandatory to quote TAN in all TDS/TCS/Annual Information Returns, payment challans and certificates to be issued.
Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-. Moreover, neither TDS/TCS returns nor payment of tax through challans would be received by banks unless TAN is quoted.
Application for allotment of TAN can either be made online at the NSDL-TIN website or manually in Form 49B. The form is freely downloadable from NSDL-TIN website and also available at TIN-FCs. Legible photocopies of the same in the prescribed format can also be used. The application is to be submitted at TIN-FCs whose addresses are available at NSDL-TIN website.
The applications are digitised by NSDL and forwarded to the Income-tax Department which issues TAN. TAN is intimated to the applicant at the address mentioned in the application.
No documents are required to be submitted along with the application. In case of online application, the signed acknowledgment which is generated after filling up the form is forwarded to NSDL.
The application fee of Rs.57 (inclusive of service tax @12.36%) is to be paid at TIN-FC. In case of online application, the payment is to be made vide cheque, demand draft or credit card.
The procedure for online application includes filling and submitting the form on the website. On clicking the button ‘submit’, an acknowledgment containing a unique 14 digit acknowledgment number is generated on the screen. It should be printed, signed and despatched to NSDL at the address mentioned on NSDL-TIN website along with the processing fee.
Any change or correction in data associated with TAN is to be made through “form for Change or Correction in TAN data” prescribed by ITD on payment of fees of Rs.57.
Detailed information on TAN can be obtained from http://tin.nsdl.com.
Amit Agarwal
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Amit Agarwal is a Google Developer Expert in Google Workspace and Google Apps Script. He holds an engineering degree in Computer Science (I.I.T.) and is the first professional blogger in India.
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