How to Apply for a TAN Number? Check Eligibility and Required Documents
Allotted by the IT department, TAN is a 10-digit alphanumeric identifier for individuals or entities required for tax deduction. When filing for tax deducted at source (TDS) or tax collected at source (TCS), quoting TAN is a pre-requisite. TAN is a 10-digit alphanumeric identifier for individuals or entities that deduct or collect tax at source.
Who allots TAN?
TIN-NSDL and TIN facilitation centres furnish TAN to businesses/ firms and individuals on behalf of the Income Tax Department.
Types of TAN applications
TAN applications are of two types – application for allotment and application for change or correction.
- Application for allotment of new TAN:
The application can be made online on the TIN-NSDL website or downloaded to submit offline. It asks for details like name, address, contact number, nationality, PAN, existing TAN etc. Applicants need to pay a TAN application processing fee of Rs. 65 (Rs. 55 as application charge + 18% GST).
- Application for change or correction in TAN data for allotted TAN:
If allotted, the change or correction form requires details like the 10-digit TAN, deductor category, name, address, nationality, PAN. It also has rows to mention the changes/ corrections required. Applicants need to prove allotment of TAN by submitting a TAN allotment letter issued by the IT department or a printout of the TAN details. The fee charged for a correction application is Rs. 63 (plus service tax, as applicable).
Why is TAN required?
Tax Deduction and Collection Account Number (TAN) is required primarily for entities responsible for deducting or collecting tax on payments made under the Income Tax Act, 1961. It serves as a unique identification number issued by the Income Tax Department to monitor tax transactions and ensure compliance. TAN is necessary for entities like businesses, employers, and contractors who deduct TDS (Tax Deducted at Source) or collect TCS (Tax Collected at Source). It helps the government track tax payments accurately, prevent tax evasion, and ensure that the correct amount of tax is deducted and deposited to the government treasury.
Who needs to apply for TAN?
Tax Deduction and Collection Account Number (TAN) is required by entities and individuals who are mandated to deduct or collect tax at source under the Income Tax Act, 1961. This includes employers making salary payments, businesses paying rent, interest, or professional fees exceeding specified limits, contractors involved in contracts where TDS applies, government agencies, banking companies, and other entities specified by the Income Tax Department. TAN ensures compliance with TDS regulations, and applicants must file Form 49B to obtain TAN from the relevant Assessing Officer. It is essential for proper tax administration and ensures that taxes are deducted at the source as required by law.
How to apply for TAN?
An application for allotment of TAN may be made either online or offline. A written set of guidelines are available to make this process easier for the applicants.
1. Online application
- Visit NSDL website: Go to the NSDL-TIN website dedicated for TAN applications.
- Select application type: Choose the appropriate application type based on whether you are applying as an individual or an organization.
- Fill Form 49B: Complete Form 49B with accurate details such as name, address, contact information, and TDS-related details.
- Submit supporting documents: Attach necessary documents like proof of identity and address as per the guidelines provided.
- Pay fee: Pay the application fee online through the portal.
2. Offline application
- If an applicant chooses the offline mode, they should visit the nearest TIN facilitation centre (TIN-FC) and submit the application in form 49B in duplicate. The addresses of TIN-FC are given on the TIN-NSDL website.
Where can you get form 49B?
To get form 49B, you must follow these steps:
- Download it from the Income Tax Department website for free.
- Collect it from a TIN facilitation centre.
- Print or get it photocopied legibly and exactly in the format prescribed by the Income Tax Department.
How to pay the TAN application/ correction fee?
When paying the TAN application or correction fee, here is what you need to do:
- A demand draft has to be made in favour of 'TIN-NSDL' and payable at Mumbai. The applicant needs to mention their name along with the unique 14-digit acknowledgement number on the reverse side of the demand draft.
- Credit card
- Debit card
- Net banking
If an applicant chooses to pay the fee by credit/ debit card, they will have to bear an additional charge of up to 2% (plus applicable taxes) of the application fee. If you choose net banking as a payment gateway, an additional amount of(Rs. 4 + GST) will be charged.
What are the documents required for a TAN application?
Any documents need not to accompany the TAN allotment application. However, if the online mode is chosen, the acknowledgement generated on submission of the form needs to be downloaded, signed, and forwarded to national securities depository limited (NSDL) by post.
If you want to track the status of your TAN application, you can use the 14-digit unique acknowledgement number. You can contact the TAN call centre (020-27218080) or send an SMS (NSDLTAN) to 57575 to track the status of TAN application.
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