All about TAN - Tax Deduction Number

Friends,

Now a days Income Tax Department is very much keen to keep your Income Tax record handy. Each and every type of effort is being made by the Income Tax department to make easy regarding tax. But it could not be done by the department itself. It is very much necessary on the part of deductor to Deposit the tax on time and into his TAN properly. Here are some major points regarding TAN.

The Tax Dedcution Number(TAN) is very important now because most of the persons , even Individuals and HUF having sales turnover above Rs 40 lacs or having professional receipts above rs 10 lacs are made responsible for dedcution of tax at source in many kind of payments. Therefore, I am giving below the FAQ on TAN published on www.incomtaxindia.gov.in and http://tin.nsdl.com for the help of all who wants to know about TAN.

1. What is TAN?

TAN or 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 or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

2. Who must apply for TAN?

All those persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.

3. Why to apply for TAN?

The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Failure to apply for TAN or comply with any of the other provisions of the section attracts a penalty of Rs. 10,000/-.

4. Why is it necessary to have TAN?

TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-

5. How to apply for TAN?

An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns. Addresses of the TIN FC are available at www.incometaxindia.gov.in or http://tin.nsdl.com.

6. Who will allot TAN?

TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.

7. Can an online application be made for allotment of TAN?

Yes. The application can be made online through http://tin.nsdl.com.

8. Can an application for TAN be made on a plain paper?

No. TAN Application can be made only on Form 49B. The application form can be downloaded from the website of the Income Tax Department (www.incometaxindia.gov.in)or NSDL (http://tin.nsdl.com ) or printed by local printers or obtained from any other source. The application is also available at TIN Facilitation Centres.

9. Can form 49B be filled on a typewriter?

Yes. But typing should be in capital letters with good impression.

10. What are the documents that need to accompany the TAN application?

No documents are required to be filed with the application for allotment of TAN. However, where the application is being made online, the acknowledgment which is generated after filling up the form will be required to be forwarded to NSDL. Detailed guidelines for the procedure are available at http://tin.nsdl.com

11. What if incomplete form 49B is submitted?

The TIN Facilitation Centre will assist the applicant to correctly fill up Form 49B but shall not receive incomplete or deficient application.

12. What is the fee for filing application for TAN?

The applicants for TAN are to pay Rs.50/- + service tax (as applicable) as processing fee at the TIN FC at the time of submitting Form 49B.

13. How will the new TAN number be intimated to the deductor?

NSDL will ensure intimation of new TAN at the address indicated in the Form 49B or against the acknowledgement in case of online applications for TAN.

14. How can a deductor know his TAN if he has an old TAN, or if he has earlier applied for TAN but hasn’t got TAN?

TIN Facilitation Centres will help the deductors in ascertaining their correct TAN from the database. TAN can also be verified from the information on the website of Income Tax Department at www.incometaxindia.gov.in. There is a search engine to find new TAN against old TAN or to find new TAN against name and address of the deductor.

15. What happens in a situation where a deductor does not have TAN or has a TAN in old format?

The deductor will have to file an application in Form 49B at the TIN Facilitation Centre along with application fee (Rs 50/-+ service tax as applicable) for TAN.

16. 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. It can also be used in case tax is being collected at source also.

17. Is a separate TAN required to be obtained for the purpose of Tax collection at Source?

In case a TAN has already been allotted, no separate application needs to be made for obtaining TAN. The same number can be quoted in all returns, challans and certificates for TCS. However, if no TAN has been allotted, a duly filled in Form 49B, alongwith the application fees is to be submitted at any TIN-FC.

18. Should Government deductors apply for TAN?

Yes

19. In case of multiple DDOs, should all of them apply for TAN?

Yes. 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.

20. 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

21 Can an e-TDS return be filed without TAN or in case TAN has not been alloted?

Quoting of TAN is mandatory in TDS and TCS returns, whether filed in paper or electronic format. The returns, whether in paper or electronic format, will not be received in case TAN is not quoted.

22. What is duplicate TAN?

Duplicate TAN is a TAN which has been inadvertently obtained by a same person who is responsible for deducting/collecting tax and who already has a TAN allotted to him earlier. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.

23. 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 used. The rest of the TANs should be surrendered for cancellation using “Form for Changes or Correction in TAN” which can be downloaded from the website of NSDL (http://tin.nsdl.com).

24. What do we have to do if we 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 the website of NSDL (http://tin.nsdl.com) or printed by local printers or obtained from any other source. The application is also available at TIN Facilitation Centres.

25. Can we quote PAN in place of TAN? Why not?

No. TAN 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.

26. How can any change in address or details on the basis of which TAN was allotted be rectified?

In case any changes or corrections are to be made in the in the data associated with the reformatted or newly allotted 10 digit TAN, the “Form for Change or Correction in TAN data” can be used.

27. How can a challan for payment of TDS/TCS obtained which has TAN printed on it?

A challan with pre-printed TAN can be downloaded from the website of Income Tax Department ( www.incometaxindia.gov.in).

28. 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?
Ans. 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 (Rs 50+ service tax as applicable) either at any TIN-FC or online at NSDL-TIN website.

29.Where can I find the address of the nearest TIN-FC?
Ans. Addresses of all TIN-FCs is available on NSDL-TIN website.

30. 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.?
Ans. No. TAN once allotted can be used for all type of deductions/collections.

31. Should Government deductors apply for TAN?
Ans. Yes. All Government deductors are also required to quote the TAN on their TDS / TCS / Annual Information Returns.

32. In case of multiple DDOs, should all of them apply for TAN?
Ans. 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.

33. Can branches of companies/banks have separate TANs?
Ans. 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.

34. Can a TDS/TCS/Annual Information return be filed without TAN in case TAN has not been allotted?
Ans. 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.

35.Can I quote PAN in place of TAN?
Ans. 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.

36.What is the procedure to apply for TAN online?
Ans. 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 despatch it to NSDL at the address mentioned on NSDL-TIN website along with the processing fee which is Rs. 50 + service tax (as applicable). Payment can be made by DD/cheque, payable at par in Mumbai, favouring NSDL-TIN .

37.How can the change in address or details on the basis of which TAN was allotted be communicated to Income Tax Department?
Ans. 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-TIN website.

38.What are the charges I have to pay while submitting the ‘Form for Changes or Correction in TAN data for TAN allotted’?
Ans. You have to pay Rs. 50 (plus service tax, as applicable) to NSDL/TIN-FC as processing fees while submitting your application at the TIN-FC or making online application.

39. If I change my address, should I inform ITD or should I apply for a new TAN?
Ans. 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.

4o. What can serve as proof of TAN in case one has lost the TAN allotment letter?
Ans. Printout of the webpage showing details of TAN, from the Income Tax Department’s website can serve as proof of TAN.