Do you know how to apply TAN?

A 10 figure alphanumeric code that is used for all communications regarding TDS with the Income Tax Department is known as TAN or Tax (collection and deduction) Account Number. Under Section 203A of the Income Tax Act 1961, it is mandatory to use this TAN Number in all communications regarding TDS with the Income Tax Department. 

Failing to do so will result in a fine of Rs. 10,000. Additionally, TDS Returns and Payments are not received by banks if TAN is not mentioned. You can apply for obtaining TAN online at the website of the Tax Information Network; however, the process may be done offline as well

When the Central Board for Direct Taxes started the pay-as-you-earn-scheme, the concept of TAN came into being. If a person earns income within a stipulated bracket, he/she is obligated to pay income tax to the government. The easiest way in which the government can ensure that taxes are paid by the individuals is to deduct tax at the source, which is why it’s important for a business owner who has employees to have TAN.

Legal Entities

Certain legal entities are required to apply for TAN –

  • Central/State Government/Local Authority/Autonomous Bodies;
  • Company;
  • Branch/Division of a Company;
  • Individual/ Hindu Undivided Family(HUF);
  • Branches of Individual Business (Sole Proprietorship Firm/ Association of Persons/Trusts.

Steps for Apply TAN

Step – I

Go to https://tin.tin.nsdl.com/tan/index.html and choose “Online Application for TAN (Form 49B)” 

On submission of details via Form 49B, an acknowledgment screen appears which will have the following details

  1. 14 Digit acknowledgment number
  2. Application Status
  3. Applicant name
  4. Contact Details (Address, Email ID & Phone No.)
  5. Payment Details – Accepted Payment modes include Demand Draft/Net Banking /Credit Card/Cheque /Debit Card.
  6. Space for Signature

Step – II

Select Category of Deductors from the drop-down list and click on “Select Button”;

Step – III

Enter the required details on the form (Fill all mandatory fields (marked with *));

Step – IV

If the data entered by the applicant fails in any format level validation, a disclaimer indicating the error(s) will be displayed on the screen;

Step – V

The form has to be re-submitted after correcting the error(s);

Step – V

In case there is no form-level error(s) a confirmation screen with data filled by the applicant will be displayed.

Step – VI

In case the applicant needs to make modifications to the data displayed on the confirmation screen, he/she may choose the edit option.

Step – VII

In case the displayed information is correct, the applicant needs to select the confirm option.

Step – VIII

After successful payment (in case the mode of payment is other than DD or Cheque) an acknowledgment slip will be generated

Step – IX

Applicant need to save and print the acknowledgment form and send it to NSDL along with the required documents 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 envelope should be superscribed as ‘APPLICATION FOR TAN – Acknowledgment Number’ (e.g. ‘APPLICATION TAN – 88301020000244’).

Now get TAN registration while company formation in India with the help of experts at LegalRaahi.