Who needs to apply for TAN?

Any organisation, firm, or individual that deducts and collects tax at source on behalf of the Income Tax Department is required to have a TAN. However, getting TAN is not required in the following circumstances:

1. Under section 194-IA, for tax deducted at source while buying immovable property, you can use your PAN instead

2. Under section 94-IB – tax deducted by a tenant

TAN allotted for TDS can be TCS (tax collected at source) too. TIN facilitation centres do not accept TDS/TCS returns without TAN.

Law Requirement

Section 203A of the Income Tax Act requires all persons who deduct or collect tax at source to apply for a TAN. This section also requires that the TAN appear on all TDS/TCS returns, payment challans, and certifications. Failure to apply for a TAN or comply with any of the clause’s other obligations results in an Rs. 10,000 fine.

How to apply for TAN?

There are two options for applying for TAN: offline or online. Online TAN applications can be submitted using the NSDL TIN website. Offline, an application for TAN allotment in Form 49B must be filed to any of the TIN Facilitation centres that handle e-TDS returns. The application form may be downloaded from the Income Tax Department’s website.

Documents Required

When applying for a new TAN, applicants are not needed to present any paperwork. They simply need to provide a signed acknowledgement slip if they apply for a new TAN online.

How To Know TAN Details By Using Applicant’s Name

An applicant’s TAN data can also be obtained by using the applicant’s name. Follow the steps outlined below to accomplish this:

1. Visit www.incometaxindiaefiling.gov.in for further information.

2. Select ‘Know Your TAN’ from the drop-down menu.

3. Under the ‘TAN Search’ option, choose ‘Name.’

4. Select Deductor Category.’

5. Choose ‘State’ from the drop-down menu.

6. ‘Name’ and ‘Mobile Number’ are required fields.

7. Continue by pressing the ‘Continue’ button.

8. In the corresponding screen, enter the One Time Password (OTP) issued to the registered mobile number.

9. After that, click ‘Validate.’

10. On the related screen, the details are displayed.

Consequences Of Not Quoting TAN

If eligible people fail to cite the 10-digit alphanumeric TAN number at the required locations, they shall incur an Rs.10,000 penalty under Section 272BB (1). If the applicant provides the incorrect TAN, an equal penalty is levied under Section 272BB. Aside from the above-stated issues, failure to cite a TAN in areas where it is necessary may result in the following: TDS or TCS returns are not accepted by TIN facilitation centre banks, and challans for TDS/TCS payments are not accepted.

Frequently Asked Questions

1: Is It Necessary To Have TAN?

Ans. All persons that deduct or collect tax at source are required to use a TAN under Section 203A of the Income-tax Act, 1961. the availability also mandates that each one of TDS/TCS/Annual Information Returns, payment challans, and certifications issued include the TAN. TDS/TCS returns won’t be accepted by TIN-Facilitation Centres (TIN-FCs), and challans for TDS/TCS payments won’t be accepted by banks if the TAN isn’t provided. A penalty of Rs. 10,000 is imposed if you are doing not apply for a TAN or don’t quote it within the required paperwork.

2: Who Can Apply For TAN?

Ans. All individuals who are obligated to deduct/collect tax at source on behalf of the Internal Revenue Service must apply for and get a TAN.

3: Are There Any Fees Associated With Submitting A TAN Application?

Ans.  At the time of filing Form 49B, a processing charge of $55 plus G&S tax (if applicable) should be paid at the TIN-FC. If you apply for a TAN online, you can pay by check, demand draught, or credit card, following the instructions on the NSDL e-Gov -TIN website.

4: What Is The Best Way To Find Out About The Status Of My Application? 

Ans. After three days, you can check the status of your application by going to the NSDL e-Gov -TIN website and selecting “Status track” and entering your unique 14-digit acknowledgement number.

5: What’s The Process For Getting A TAN?

Ans.  A Form 49B application for TAN allotment must be completed and submitted to any TIN-FC. TIN-FC addresses can be found on the NSDL-TIN webpage. You can also apply for a TAN online at the NSDL-TIN website.