FAQs On TAN (Tax Deduction & Collection Account Number)

FAQs On TAN (Tax Deduction & Collection Account Number) 1. What is TAN TAN i.e. Tax Deduction and Collection Account Number is a 10 digi

CA Deepak Gupta

Apr 12, 2019

Last update on Apr 12, 2019

FAQs On TAN (Tax Deduction & Collection Account Number) 1. What is TAN

TANi.e.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 tax at source or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed.

2. Who must apply for TAN

Every person liable to deduct tax at source or collect tax at source is required to obtain TAN. However, a person required to deduct tax undersection 194IAorsection 194-IBcan use PAN in place of TAN as such person is not required to obtain TAN.

(1) Section 194IA provides for deduction of tax at source from payment on transfer of certain immovable property other than agricultural land.

(2) section 194-IB provides for deduction of tax at source at the rate of 5% from payment of rent. The tax shall be deducted if the rent paid or payable exceeds Rs. 50,000 per month or part of the month. This provision is applicable on individual and HUF, who is not liable to tax audit under Section 44ABin the immediately preceding financial year.

3. Why is it necessary to have TAN

As per section 203Aof the Income-tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN.Section 203Aalso makes it mandatory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates and other documents as may be prescribed. As persection 272BB, failure to apply for TAN or not quoting the TAN in the specified documents attracts a penalty of Rs. 10,000/-.

4. How to apply for TAN

There are two modes for applying for TAN: (1) Online mode and (ii) Offline mode, they are as follows:

OFFLINEAn application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN Facilitation Centres (TIN-FC). Addresses of TIN-FCs are available at NSDL-TIN website (https://www.tin-nsdl.com).

In case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. INC-7 specified under sub-section (1) ofsection 7of the said Act for incorporation of the company.

ONLINEOnline application for TAN can be made from the NSDL-TIN website.

Addresses of the TIN FC are available at www.incometaxindia.gov.in or https://www.tin-nsdl.com.

5. Who will allot TAN

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

6. Can an online application be made for allotment of TAN

Yes. The application can be made online through https://www.tin-nsdl.com

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

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

8. Can form 49B be filled on a typewriter

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

9. What are the documents that need to accompany the TAN application

No documents are required to be accompanied withForm 49Bi.e.the application for allotment of TAN. However, where the application is being made online, the acknowledgment which is generated after online filling up the form will be required to be forwarded to NSDL. Detailed guidelines for the submission of application are available at https://www.tin-nsdl.com

10. What if incomplete form 49B is submitted

The TIN Facilitation Centre will assist the applicant to correctly fill upForm 49B but incomplete or deficient application will not be accepted.

11. What is the fee for filing application for TAN

Currently the fee for filing the TAN application is Rs.65/- + GST as applicable (the application fees may change from time to time).

12. How will the new TAN be intimated to the deductor

NSDL will ensure intimation of new TAN at the address applicant has indicated in theForm 49B

13. 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 atwww.incometaxindia.gov.in. Using the "Know Your TAN" facility atwww.incometaxindia.gov.inorhttps://incometaxindiaefiling.gov.inthe deductor can know his TAN.

14. After making the application for allotment of TAN in Form 49B, how to know the status of the application

The status of TAN application can he checked by using the "Track your PAN/TAN Application Status" fromwww.incometaxindia.gov.inorhttps://www.tin-nsdl.com.

15. It is necessary to apply for different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend, commission, 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.

16. Is a separate TAN required to be obtained for the purpose of tax collection at source

In case a TAN has already been allotted for the purpose of tax deduction at source (TDS), then no separate application needs to be made for obtaining separate TAN for the purpose of tax collection at source (TCS). The same number can be quoted in all returns, challans and certificates for TCS. However, if no TAN has been allotted, a duly filled inForm 49B, along with the application fees is to be submitted at any TIN-FC.

17. Should Government deductors apply for TAN

Yes

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

Yes. In such a 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.

19. Can branches of companies/banks have separate TANs

Yes. In such a case, 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

20. 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.

21. 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. In other words, more than one TAN issued to a person is called duplicate TAN. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.

22. In case duplicate TAN has been allotted, which TAN should be used

In case duplicate TAN(s) have been allotted to a person, then the TAN which has been used regularly should be used. The other TAN(s) should be surrendered for cancellation by using "Form for Changes or Correction in TAN" which can be downloaded from the website of NSDL (https://www.tin-nsdl.com).

23. 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 should be made for cancellation of the TAN which has not been used. Application for cancellation of TAN is to be made in the "Form for Changes or Correction in TAN" which can be downloaded from the website of NSDL (https://www.tin-nsdl.com) or obtained from any other source. The application is also available at TIN Facilitation Centres.

24. Can we quote Permanent Account Number (PAN) in place of TAN

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 required to deduct tax at source or collect tax at source.

PAN is a unique identification number issued to keep a linking of the transactions carried by a person like payment of tax, TDS/TCS credit, return of income, return of wealth, correspondence with the Income Tax Department or correspondence by the Income Tax Department, investments made by a person, loan taken by a person, etc. However, a person required to deduct TDS as persection 194IAorsection 194IB, can use PAN in place of TAN.

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

If there is any change in the data provided in the application for allotment of TIN (i.e.data provide at the time of allotment of TAN), then such change is to be communicated to the Income Tax Department by intimating the change in , the "Form for Change or Correction in TAN data". Duly filed form should be submitted to the TIN Facilitation Centres or an online application can be made athttps://www.tin-nsdl.com

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CA Deepak Gupta

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CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.