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What is the relevance of TAN?

All persons deducting the TDS needs TAN because without it Tax Collected at Source (TCS) or Tax Deducted at Source (TDS) returns are not accepted by TIN facilitation centres. It should also be noted that banks also do not accept the challans for TDS/TCS payments if the deductor fails to quote the TAN number. Section 203A has also made it mandatory to quote TAN in the following documents:

  1. i.) TDS statement i.e Return
  2. ii.) TCS statement i.e Return
  3. iii.) Challans for payment of TDS/TCS
  4. IV.) Statement of financial transactions
  5. v.) TDS/TCS Certificates
  6. vi.) Any other documents if mentioned.

What is the consequence of not quoting TAN?

If any person fails to obtain TAN then under section 272BB(1) a penalty of Rs. 10,000 will be imposed on the person. It should also be noted that Section 272BB(1A) charges a penalty of Rs. 10,000 on the persons who quote an incorrect TAN.


How to get a TAN number?

There are two different modes to apply for TAN. The first mode is Online paperless mode and the second mode is Offline.

Steps to apply for TAN Online:
  1. Visit https://tin.tin.nsdl.com/tan/index.html and select “Online application for TAN (form 49B)”
  2. After selecting the category of deductors from the drop down menu then click on “Select button.
  3. Fill out the requisite details on the form, this screen will appear and fill all the mandatory details (marked with *)
  4. If the data submitted by the applicant fails at any formal level validation, a response indicating the errors will appear on the screen.
  5. Forms can be submitted only after rectifying errors.
  6. In case formal level errors do not exist, a confirmation screen with data filled by the applicant will be displayed.
  7. In case an applicant requires any amendment in the application filled, he can choose it by selecting the Edit option.
  8. In case the displayed information is correct, the applicant can choose the confirm option.
  9. On successful payment of fees( in case the mode of payment is other than DD or Cheque) an acknowledgement slip will be generated.
  10. Applicant shall save and print the acknowledgement and send it to NSDL at-
    Address:-

    NSDL e - governance Infrastructure Limited,
    5th floor,Mantri Sterling,
    Plot No. 341, Survey No.997/8,
    Model colony,
    Near Deep Bunglow Chowk,
    Pune-411016
    The envelope should be superscribed as ‘APPLICATION FOR TAN-Acknowledgment Number’. (e.g. 'APPLICATION TAN - 88301020000244').?

Steps to apply for TAN Online - using Digital Signature Certificate

  1. Choose the ‘Apply Online’ option in the TAN module from https://tin.tin.nsdl.com/tan/form49B.html
  2. Select the DSC based online TAN application option.
  3. Select the appropriate applicant category.
  4. Fill in the online application form.
  5. Insert the DSC of the authorised signatory and add on the digital signature on the form.
  6. For DSC based applications, only an online payment option is available.
  7. Generate the acknowledgement receipt having the 14-digit acknowledgement number.
  8. For DSC based TAN applications, persons applying for the request need not send any document to NSDL e-Gov website.

Steps to apply for TAN Offline:

  1. From the TIN FCs or from the TIN website, download the TAN application form. Please refer the link - https://www.tin-nsdl.com/services/tan/download/Form49b_22052012.pdf
  2. The form needs to be filled in block letters and probably in english language.
  3. The applicant's address has to be an Indian address only.
  4. The duly filled and signed application form 49B needs to be submitted to the nearest TIN-FC.
  5. Left hand thumb impression, if used, should be attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
  6. No additional documents need to be submitted other than form 49B.
  7. Refer the instructions given on the Form.
  8. An amount of Rs. 65 (incl GST) needs to be paid as a processing fee at the counter of TIN-FC.

Find TIN-FC from click here https://www.tin-nsdl.com/tin-facilities.html Download offline TAN application form from click here https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007919.pdf


What documents are required to be submitted along with a TAN Application?

The TAN Allotment application need not be accompanied by any documents.
However, if online mode is chosen, the acknowledgment generated on submission of form must be downloaded,signed and forwarded to NSDL by Post.

Address:-

NSDL e - governance Infrastructure Limited,
5th floor,Mantri Sterling,
Plot No. 341, Survey No.997/8,
Model colony
, Near Deep Bunglow Chowk,
Pune-411016
The envelope should be superscribed as ‘APPLICATION FOR TAN-Acknowledgment Number’. (e.g. 'APPLICATION TAN - 88301020000244').?


What are the modes which are available for payment of fees?

The payment fees can be processed by the following modes:

  • Demand draft
  • Cheque
  • Credit card/Debit card
  • Net banking
  • Cash (if offline form submit at TIN FC)

How to track the status of your TAN Application online?

The application deductor can enquire about his TAN application status by accessing the NSDL-TIN website and clicking on the status track option. You can refer the link - https://tin.tin.nsdl.com/pantan/StatusTrack.html. The applicant needs to quote the 14-digit acknowledgement number after three days of his application. This facility can also be availed from the Income-Tax Department website.

Apart from tracking the TAN application online the applicant can alternatively contact the TAN Call centre (020-27218080) or send an SMS to 57575 to track its TAN Application status. (e.g. NSDLTAN to 57575)


Is it possible to make corrections if TAN is already allotted?

If TAN has already been allotted and you later find that there has been some mistake which needs to be corrected then you can either

  • Make an online application for “Change or correction in TAN data” or
  • Fill the "Form for Change or Correction in TAN data" and submit it to TIN Facilitation Centers.

Frequently Asked Questions

Q- How can I apply for a TAN?

TAN application form can be submitted online or offline following the process described in the guide above.


Q- Who should apply for TAN?

Every person who is liable to deduct tax or collect the tax is required to obtain TAN except those required to deduct TDS under the following section

  • Section 194IA
  • Section 194IB
  • Section 194M

In all these three cases PAN can be quoted instead of TAN.


Q- Is it necessary to apply for a different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend, commission, etc.?

Ans. No, the TAN ones allotted can be used for all the different types of deductions. In case if the tax is being collected at source then also the same can be used.


Q- In case of multiple DDOs, should all of them apply for TAN?

Ans. Yes. In such a case, it is mandatory to give the following details clearly (whichever applicable) in the application for allotment of TAN - The name of the Division, location of branch, name of branch, designation of the person responsible for deducting/collecting tax.


Q- What has to be done if we have been allotted a duplicate TAN by oversight?

In case if duplicate TAN has been allotted, then the applicant should generate an application for cancellation of the TAN which has not been used. TAN cancellation application can be processed from Form for Changes or Correction in TAN which can be downloaded from the NSDL website ( https://www.tin-nsdl.com ). TIN Facilitation Centres also provide applications for the same.


Q- What are the charges for processing the TAN application?

The amount which is charged for processing the application for TAN is INR 65.00 (55.00 application charges + 18 % Goods and Services Tax). This amount is non-refundable, in case the application gets rejected. A DD/Cheque can also be drawn in favour of NSDL-TIN. Post submission of the form, the concerned department will verify the details. If the application is correct then the TAN details would be sent to the applicant’s address or a mail with the same details will be sent if the application was made online.


Q- What details are mentioned in the acknowledgement sent by NSDL?

The acknowledgement consists of the following details:

  • a.) A unique acknowledgement number of 14 digits.
  • b.) Name and contact details of the applicant.
  • c.) Status of applicant
  • d.) Details with respect to payment
  • e.) Space provided for signature

Q- What are the reasons for TAN rejection?

You TAN application can be rejected due to the following reasons

  • There was a problem in processing the application due to insufficient or incorrect information
  • There was a problem in processing the payment due to wrong details entered, insufficient bank balance etc
  • A TAN number has already been allotted in your business name

Q- What should be done if a TAN application is rejected?

In case your TAN application gets rejected you need to refill Form 49B. Make sure that the mistakes you made last time are not repeated.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

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