The word TAN stands for Tax Deduction Account Number (TAN) for depositing tax deducted at source(TDS). It is also known as Tax collection Account Number. Section 272 BB (1) IT Act imposes the penalty of Rs.10000/-, for not having obtained TAN, to a person who is responsible for deduction tax at source. Further, as per section 203- A of IT act 1961, all assessee who are liable to deduct TDS, required to quote TAN number in all TDS payments, all TDS returns, and in all communication to IT department with regard to TDS. Banks do not accept any form/challan in the absence of TAN card number for tax payment. As per current rule, the buyer of immovable property of Rs.50 lakh and above is required to deduct tax at source @1% towards income tax at the time of payment under section 194-IA of the Income Tax Act. Such persons are not required to obtain TAN and they can use their PAN card number instead of TAN card numbers.
The TAN card number is the 10 digits alphanumeric number. The first 4 digits of TAN are alphabets, the next 5 digits of TAN are numeric and the last digit is an alphabet. The first 3 alphabets of TAN represent the jurisdiction code (For example DEL indicate Delhi jurisdiction), 4th alphabet is the first character of the name of the TAN holder who can be a company, firm, individual, etc. The next five characters are random sequential numbers from 00001 to 99999. The last character is an alphabetic check digit.
Online Application for TAN acknowledgment
The applicant for TAN card shall fill and file e-Form 49B online. A confirmation screen with all the data filled by the applicant will be displayed. The applicant may either edit or confirm the same. The applicant is required to re-submit the form if there is any errors. On confirmation of data filled displayed on the screen, an acknowledgment will be displayed on the screen with the following (i) A unique 14-digit acknowledgment number, (ii) Status of applicant, (iii) Name of applicant, (iv) Contact details (address, e-mail and telephone number), (v) Payment details, (vi) Space for signature. The applicant shall save and print this acknowledgment.
Off-line application for TAN acknowledgment:
Application for TAN acknowledgment can be obtained by procuring the Form 49 B from NSDL or the TIN-FC centers. The applicant may also use legible photocopies of Form 49B or forms legibly printed exactly as per the format prescribed by Income-tax Department. The duly filled in form 49 B in duplicate shall be submitted to any TIN-FC. Upon process of the application submitted, the applicant would receive a 14 digit unique acknowledgment number from the TIN-FC.
In the acknowledgment print out, the applicant put his/her Signature / Left thumb impression within the box provided. In case of applicants other than ‘Individuals’, the authorised signatory shall sign the acknowledgment under official capacity. (In case the applicant set Left hand Thumb impression, it should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp).
The acknowledgment and a payment of Rs.62 (Rs.55+ service tax) required to be made by DD/Cheque/Credit card/debit card etc. should be mailed to NSDL e-Governance Infrastructure Limited at the following address within 15 days from the date of application.
Address: NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016. The top of envelope shall be Superscripted with the line ‘APPLICATION FOR TAN – Acknowledgment Number………………..’
The application will be processed by NSDL only on receipt of duly signed acknowledgment and realisation of payment. On allotment of TAN numbers NSDL will forward the intimation of TAN at the address in indicated in Form 49B.
In case of an applicant, is a proposed company under the process of registration, the application for allotment of Tax Deduction Account Number may be made in Form No. INC-7 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.
Any change or correction in the data associated with TAN should be communicated to the Income-tax Department by filing- up “Form for changes or correction in TAN data for TAN allotted” along with necessary fees at any of the TIN-FCs or NSDL-TIN website.
Disclaimer: This article should not be construed as a professional advice under any circumstance. It is clarified to the readers that the contents provided in this write-up are intended for general information only and cannot be relied upon for real-time professional facts.Readers are therefore advised to refer relevant Income Tax rules, or NSDL TIN-FCs for clarifications, if any, before applying or accepting any of the points mentioned above. The author or the website accepts no responsibility whatsoever caused by the use of any information provided in this article and shall not be liable for any losses, claims or damages which may arise because of the contents of this post.
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