The Income Tax Department is authorized to issue a Tax Deduction Numbers or Tax Collection Account Number. Every person is liable to deduction of tax at source or collection of tax at source are required to obtain TAN.
What is a TAN card?
A Tan card is a kind of card that displays a ten-digit code or alphanumeric code that is used by individuals responsible for tax collection or deduction. These are unique numbers that the Income Tax department allots to taxpayers. If there is no TAN number then the lending institutions aren’t allowed to accept TCS or TDS. If required and the TAN number is not attached to the official documents it can lead to paying a penalty of ₹10,000. So, one is liable to deduct tax at source or collect tax at source must obtain a TAN card.
Why is TAN Required?
TAN is required by all individuals because without it Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centers Banks do not accept the challans for TDS/TCS payment if TAN is not quoted.
Who Needs to Apply for TAN
Every person who is required to deduct or collect tax at source on behalf of the Income-tax department needs to apply and obtain the 10-digit alphanumeric TAN.
Types of TAN Application
There are generally two types of TAN applications:
- Required change or Correction in TAN Data: By this one is allowed to make required changes or corrections in TAN data.
- Filling application to allot new TAN: The individuals not having a TAN card can submit a form called Form 49B for issuance of a new TAN card. The application is made at the TIN facilitation centers. It is established by NSDL to make an online application.
How to Apply of TAN?
TAN can be applied either online or offline, Applicants has to visit NSDL official website for online application or by visiting any of the TIN facilitation centers of National Securities Depository Limited (NSDL)
To apply online for a new TAN, an applicant can follow the steps mentioned below:
1. Visit www.tin-nsdl.com/index.html
2. Select ‘TAN’ under the ‘Services’ dropdown
3. Click on ‘Apply online’
4. Select ‘New TAN’
5. On the new page, choose from the list ‘category of deductors’ and click on ‘Select’
6. In doing so, it is redirected to form 49B
7. Fill in the form and ‘submit’ the form
8. On confirmation, an acknowledgement screen is displayed which contains
- A 14- digit acknowledgement number
- Status of the applicant
- Name of the applicant
- Contact details
- Payment details
- Space of signature
9. The applicant is required to save the acknowledgement and get a printout of it
10. The printout of acknowledgement along with other documents is required to be sent to
NSDL e-Governance Infrastructure Limited
5th floor, Mantri Sterling
Plot No.341,Survey No. 997/98,
Near Deep Bunglow Chowk
For applying offline, the process is the same as mentioned above apart from the fact that the applicant is required to visit the TIN facilitation centers located in their place of residence.
Documents to be submitted
The following mentioned document need t be submitted along with the application for TAN:
- Proof of address of the registered office
- Passport sized photo as per specifications
- PAN card of the enterprise
- Tan application form
- Identify proof of the company
How Much Does a TAN Card Cost?
There is a very minimum charge for processing a TAN application is ₹65 only. This fee of ₹65 is divided into two parts including ₹55 as the application charge and 18% as Goods and Services Tax (GST) i.e., ₹10. There is an additional charge of 2% while completing the required transaction with the help of a credit card or debit card. The case of individuals who will be making their payments through net banking will be charged an additional ₹4. After the payment, an acknowledgment slip is shown to the applicant that indicates a successful payment.
How Long Does It Take to Get a TAN Number?
From the date of applying for the card one will get this card within 7 to 15 working days. This given period is based on one’s postal address. It is good to keep your attention on the status of the TAN card. For this one need the 14-digit alphanumerical number to check the status of delivery.
Its main function is tax deduction and collection account number called TAN. It is related to deduction or collection of tax at source. TAN is obtained by every person who is responsible for deducting tax or TDS.