TAN- Tax Deduction and Collection Account Number

TAN stands for Tax Deduction and Collection Account Number. TAN registration is required for all the assesses required to deduct TDS (Tax deducted at source) on transactions.  The income tax department has asked all deductors to register their TAN on TRACES web site. Once registered, the deductors will be provided User ID and password for authenticated access. The form 49B is the application form which is to be filled for allotment of TAN.  

Benefit of TAN registration

The access will result in the following benefits to the deductors:

  • View of status of all statements filed;
  • Download of consolidated quarterly e-TDS / TCS statement for preparation of correction statement; and
  • Other functionalities related to quarterly TDS /TCS statement.
  • As TDS certificates are issued by a person or entity which holds TAN, the tax payee has an opportunity to know how much tax has been paid by him/her.
  • As TDS certificates are issued by a person or entity which holds TAN, the tax payee has an opportunity to know how much tax has been paid by him/her.

 

 

TAN formation:

 

•              Alphabets are the first 4 TAN digits, binary are the next 5 digits, and the last digit is an alphabet.

•              The First 3 TAN alphabets reflect the code of authority, the fourth alphabet is the initial of the TAN holder's name which can be a business, firm, person, etc.

 

How to Apply for TAN?

 

An application for TAN could be made by submitting form 49B at TIN facilitation centres. TAN is allotted to applicants by income tax department. TAN could be applied by making an online application or in person by visiting the income tax department. If the user applying an online application, an acknowledgement which is received after the application has been submitted in form 49B needs to be furnished to the department as a proof. TIN (Tax Information Network) A unique acknowledgement number of 14-digits.

Applicants should save and print this acknowledgement and along with this the applicant must sign in the space so provided the signed acknowledgement along with DD (if any), shall be sent to NSDL (National Securities Depository Limited) at 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 user has to pay the required payment fee as registration charges and these are non-refundable fee.

After successfully activation of account within 48 hrs of registration, user will be able to Login on TRACES website by entering the User id, Password, TAN of the Deductor and the verification code.

 

 

Documents required for TAN registration:

 

There are no specific documents required for obtaining the TAN but some important details should be furnished.

 

Address proof – Any card which has applicant’s current address.

Applicant information - Name, address, contact, signature, etc.

Certificate of incorporation for a company, LLP, etc.

Agreement made about for a partnership firm, LLP, etc.

After incorporating the above details, the acknowledgment slip is generated.

Save and print the acknowledgment receipt for further reference.

If the payment is to be done online, then a credit card/debit card/net banking mode can be availed.

In case, If the mode of payment is done offline, then the Demand Draft (DD)/ challan is the name of NSDL-TIN should be sent to NSDL office.

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