TAN stands for Tax Deduction/Collection Account Number. It concerns individuals who are required to deduct or collect tax at source under the income tax regime. There are two methods to apply for TAN, i.e., either online or offline. The process has been discussed in detail below.
How to Apply for TAN?
One can file a TAN application using Form 49B. Moreover, to complete this process, individuals may need to present supporting documents along with their application. However, there is no such requirement when applying physically.
Find the step-by-step process below:
These steps will enable you to apply for TAN offline:
- Step 1: Obtain a TAN application form from the TIN Facilitation centres or the TIN website.
- Step 2: Make sure to write in English language (block letters) to fill out your form.
- Step 3: Fill up all its required columns and provide your Indian address under location details.
- Step 4: Finally, sign this form and submit it to your nearest TIN FC. (For those who choose to provide a left-hand thumb impression must get their form attested by a Notary Public/ Gazetted Officer/ Magistrate under stamp or official seal area)
- Step 5: Refer to the instructions present in this form and pay the required processing fee to complete application registration.
Using this method, you can apply for TAN online:
- Step 1: Visit the official NSDL (National-Securities-Depository-Limited) site to proceed.
- Step 2: Once its window loads, click on the ‘Online Application for TAN (Form 49B)’.
- Step 3: You will find a drop-down list mentioning different categories of deductors below the ‘Apply for New TAN’ option. Select the appropriate one.
- Step 4: Click on the ‘Select Button’ and form 49B will appear on your screen.
- Step 5: Fill out the correct data in all empty columns (marked with *).
- Step 6: If you miss meeting any format level validations, the page will respond with an ‘error’ when submitted.
- Step 7: Make the necessary changes and resubmit your form. However, if there is no mistake in your format, a confirmation window will appear on your screen upon submission.
- Step 8: Check if your data is correct or choose the ‘edit’ option to make changes; otherwise, select the ‘confirm’ button.
- Step 9: Complete your application process by making the required payment. This site will accept your form and generate an acknowledgement slip.
Online Mode Using Digital Signature
If you want to apply for TAN online using a digital signature, follow this procedure:
- Step 1: The first two steps are the same. So, once the TAN module of NSDL loads, look for the ‘Apply for New TAN (for DSC Users)’ option.
- Step 2: Select the category of deductors and click on its ‘select’ button.
- Step 3: A new tab containing the TAN application form will open up. Fill in the required columns.
- Step 4: Check the DSC of the authorised signatory column and upload a digital signature in the form.
- Step 5: Using this method, you are only eligible to pay online.
- Step 6: This site will generate an acknowledgement slip after successful payment. Also, here you do not need to upload any supporting documents.
What Process to Follow After the Generation of Acknowledgement Receipt?
Once this site accepts your application, it shows an acknowledgement window which consists of:
- A unique 14-digit acknowledgement number
- Applicant’s name and contact information
- Payment details
- Status of the applicant
- Space for signature
Make sure to follow this process after the generation of your acknowledgement receipt:
- Step 1: Save and print this receipt.
- Step 2: Sign in the space provided in this acknowledgement slip.
- Step 3: Send this duly signed document along with your DD to the NSDL (National Security Depository Limited) centre at its official address.
(Address: NSDL – e-Governance Infrastructure Ltd., fifth floor, Mantri Sterling, Survey No. 997/8, Plot No. 341, Model Colony, Beside Deep Bungalow Chowk, Pune, Maharashtra 411016.)
What Are the Documents Required to Apply for TAN?
If you apply for TAN online, you must provide the acknowledgement receipt to NSDL by post as an important supporting document to complete this application process.
What is the Processing Fee for TAN Application?
There are various modes available to pay processing fees. It can be paid via cheque, demand draft, net banking, debit or credit card, or cash (for offline). The amount you need to pay as a processing fee to submit a TAN application to NSDL is Rs 65 (including GST). Remember, this is a non-refundable fee, so you will not get it even if your application gets rejected.
After payment, NSDL verifies your form and accepts it if the details are correct. Next, on passing your request, the officials send your TAN details to the official address mentioned in the form or via email in case it was an online application.
How to Track the Status of the TAN Application?
Income Tax Department also allows you to check your TAN application status by accessing the NSDL TIN site. The steps are as follows:
- Step 1: Go to the site and search for the track application status option.
- Step 2: The site will ask you to provide the 14-digit number mentioned in your acknowledgement receipt and select the category of application you need to check the status. Feed to proceed.
- Step 3: Enter the captcha and click the ‘submit’ button to find your status.
Know that you can also avail of this facility at the official site of the Income Tax Department. However, to find the status offline, you can contact the TAN call centre by dialling (020-27218080) or messaging on 57575.
What Important Points to Keep in Mind While Filling a TAN Application?
Be mindful of the following pointers while filling TAN application form to minimise your chances of rejection:
- Fill in all the columns of the form. There should be no blanks or pending sections when submitting it.
- List down your designation in the form mandatorily.
- The address you provide in the form must be in India.
- The form must contain details of the district, area, code and similar information. However, if you are not aware of this then the income tax office will assist you to find out the same.
- As a collector or deductor of the tax, you might have to furnish details of the assessing officer to complete your application. So, if you do not have it, get it from the income tax office.
TAN registration is an important procedure that every assessee needs to follow to deduct/collect tax at source while carrying transactions. So, download the application form 49B and carry out the above-mentioned process to apply for TAN online, offline or using a digital signature.
Frequently Asked Questions
Can applicants correct information after the IT department has allotted TAN?
If TAN has been allotted and applicants find some mistake while filing the form afterwards, they can make corrections using two ways. First, by sending an application requesting the required correction. Second, by filling out a correction form and submitting it to their nearest facilitation centre.
What reasons can lead to the rejection of the TAN application form?
There can be three reasons behind the rejection of the TAN application form. First is applicants have provided insufficient or incorrect information in their application forms. Second, the IT department has already provided a TAN to the applicant’s business firm. Third, there is a problem with payment.
Who is excluded from the requirement of applying for TAN?
All assessees who need to either deduct or collect tax are liable to apply for TAN except those covered under Section 194-IA, Section 194-IB, and Section 194M. In these three cases, individuals can use PAN instead to deduct TDS under Income Tax Act 1961.
What happens if you do not quote TAN on challans or returns?
If an individual does not obtain TAN, he or she is liable to pay a penalty of Rs. 10,000 under Section 272BB (1). In addition, if you quote an incorrect TAN on challans or returns, then also the concerned individual needs to pay a penalty of Rs. 10,000 under Section 272BB (1A).
Vaibhav is Chartered Accountant by profession, having experience of 4+ years in banking & finance sector.
Since past one year associated with Wint Wealth as Credit Principal. Previously worked with Northern Arc Capital for 2 years in FI-Credit Team and AU Small Finance Bank for 1 year in LAP-Credit Team.