Advantages of TAN Registration

• Statutory Guidelines adherence – TAN Registration helps businesses adhere to statutory guidelines since it is mandatory for entities deducting tax at source.
  
• Lifelong validity – Once, a TAN Registration process is complete it's never expired and is valid for a lifetime.
  

Documents Required For TAN Registration

No mandatory document or identity proof is required for TAN Registration while making an application for TAN allocation.

How to Apply for TAN

You can apply for TAN offline as well as online. The following are the key steps you can follow to obtain your TAN number online:

• Log on to the Tax Information Network website of  NSDL
  
• Click on ‘Services’ option and then click on ‘TAN’.
  

• Now, click on ‘Apply Online’ option in the left-hand bar and then select ‘New TAN’ from the drop-down menu.
  

• You will be asked to fill in Form 49B. Please enter the required details and click on ‘Submit’ option.
  

• After submitting the details, you will be directed to the payment page. An amount of Rs.62 needs to be paid for the TAN application. You can pay it online using your debit/credit card or net banking. Else, you can choose to pay it using a demand draft or challan.
  
• After selecting the payment option, you will see an acknowledgement screen that displays the following information: 
  
  
  a) 14 digit acknowledgement number
  
  
  b)  Status of the application
  
  
  c)  Name of the applicant
  
  
  d)  Contact details (address, email and phone number)
  
  
  e)  Payment Details
  
  
  f)  Column for Signature

  
  

• If you have paid the application fee online, you have successfully submitted the TAN application. In case, you have selected offline mode of payment (DD/Challan), then the duly signed acknowledgement receipt along with the DD/Challan should be sent to the NSDL office.
  
• Otherwise, you can download Form 49B online and fill in the required details as per the instruction sheet and send it to the NSDL office along with the DD/Challan in order to apply for a new TAN online.
  

Note: You can contact TIN support desk at NSDL in case of any other queries regarding the TAN number. You can reach it at 022-24994650 or email at tininfo@nsdl.co.in  

Know Your TAN

In case, you had obtained a TAN number in the past but don’t remember it now, you can find it online using the “Know Your TAN” facility provided by the Income-tax department. Here’s how to use it:

1. Go to the Income Tax India e-filing website. Click on ‘Know Your TAN’ option in the left-hand bar.
   

2. Select the Category of Deductor i.e. company/branch/individual and enter the required details such as your name (as mentioned on TAN), mobile number, state and category of deductor, then click on ‘Continue’.
   

3. Your TAN number will be sent to your registered mobile number as provided by you at the time of signup of your TAN.
   

What is the Penalty under not obtaining the TDS Registration?

Fifteenth of each July, October, January, and May are the due dates for documenting quarterly TDS return. Any postponement in outfitting your arrival will bring about a punishment of Rs.200 every day not surpassing the aggregate sum of TDS for the quarter. In the occasion that assessment enlistment or TDS Registration isn’t gotten then a penalty of Rs.5000 Rs.200 multi day, whichever is higher may be pulled in.

Correction in TAN Registration

In the event that you need to roll out any improvements or revisions in the particulars specified in your TAN, at that point you can top off a change ask for frame accessible on NSDL site. You can likewise surrender your TAN for wiping out utilizing the Form for Changes or Correction in TAN.

You have to present the accompanying reports alongside your change ask for application:

a) Evidence of the TAN you are as of now utilizing.
b) Evidence of TAN that will be surrendered or dropped.
c) TAN portion letter or printout of TAN points of interest.
d) Applicable archived confirmation to help your demand to change or right certain particulars in your TAN.

FAQs

Q. What is the necessity for TAN?

Section 203-A of Income Tax Act, 1961 mandates that any person collecting or deducting tax at source must register for TAN. It has also been made mandatory that TAN be quoted in every TDS/TCS return, challan or certificate.

Q. Who allocates TAN?

Income tax department allocates TAN on the basis of TAN application submitted at TAN facilitation centers.

Q. Are different TAN numbers required for making deductions from different types of payments such as Rent, Salary, Interest etc.?

No. Once TAN has been allocated it is used across all types of deductions.

Q. Is it possible to apply for more than one TAN?

It is illegal for a person to have more than one TAN. In the event a duplicate TAN has been inadvertently issued by the authority, the second TAN number should be surrendered/or canceled and the TAN which is regularly used for deductions should be the only one that is used.

Q. Can different branches of Companies and banks have different TANs?

Yes. The location and name of the respective branch along with the designated person responsible for tax collection or deduction must be specified in the TAN application. TAN is required separately for each branch if it attracts the provision of TDS.

Q. What is the time period for processing TAN application?

A TAN is generally obtained in a span of 7-10 days of application submission subject to government processing time.

Q. Do I need a separate TAN for the purpose of Tax Collection at Source (TCS)?

No. TAN which was allotted for Tax Deduction at Source (TDS) can be used for the purpose of TCS. However, if no TAN has been allotted, apply for TAN registration.

Q. What is the validity of TAN?

A TAN is issued with lifetime validity and doesn’t need to be renewed. However, if there are changes in the details submitted during the application for TAN registration, the same have to be communicated to the Tax Department.

Q. Is there any penalty if I don’t quote TAN?

It is mandatory for all assessees to quote TAN who are required to deduct TDS on payments made. The TAN number has to be quoted in all the communications with tax department, failing of which may attract a penalty of Rs.10, 000/-. The banks also don’t entertain TDS payments and TDS returns if the TAN number is not quoted.

For more information on this visit www.taxaj.com

Posted by Pooja

Team Taxaj