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TAX DEDUCTION AND COLLECTION ACCOUNT NUMBER (TAN) APPLY

WHAT IS TAN?

Just like PAN (i.e. permanent account number) is unique number assigned to all tax payers, Tax Deduction and Collection Account Number (TAN) is a 10 digit unique number that is assigned to all the entities who can collect tax on behalf of the Income Tax department. TAN is compulsory while filling your TDS (tax deducted at source) and TCS (tax collection source) returns (for both electronic and paper). This 10 digit alphanumeric number issued to individuals who are required to deduct tax on payments made by them under the Indian Income Tax Act, 1961.

Also, this number is to be quoted by the entities in the TDS who are liable to deduct tax on behalf of the Income tax department. Also, a fine of INR 10,000 is levied in case the entities do not obtain this number despite deducting TDS. Besides, banks have the authority to deny transactions if TAN is not quoted by the assesse.

HOW CAN YOU APPLY FOR TAN?

You can make an application for new TAN by filling and submitting Form 49B. This can be done at any of the facilitation centers which are meant for receiving e-TDS returns. An entity can apply for TAN by either visiting the Income Tax Department or by making an online application at the official website of Income Tax department. Always remember, you can apply for issuance of TAN only through Form 49B. No supporting documents will be required in case of physical applications to the Income Tax Department. However, one will have to save and send the acknowledgement that is received after submitting form 49B to the Income Tax Department in case of an online application.