All tax authorities track assessees with unique tax identification numbers. Income Tax Authorities use PAN for tracking Income Tax Returns and TAN for TDS/TCS Returns. In this article, we try to explain all provisions related to TAN. So let’s understand what is TAN and legal provisions for its uses.
What is TAN?
Tax Deduction and Collection Account Number (TAN) is a 10 digit Alphanumeric Number. It is used for collecting TDS and TCS. Every Assessee who is liable to collect either TDS (Tax Deduction at Source) or TCS (Tax Collection at Source) needs to apply for TAN. Like PAN in Income tax, TAN is the must for quoting it on all TDS/TCS Returns. It must also be quoted on any communication with Income Tax Department for TDS/TCS purposes.
Legal Provisions for TAN
Section 203A of the Income tax Act, require every tax deductor or collector of TDS/TCS to obtain TAN. As per this section, TAN must be quoted on –
Challans for payment of TDS/TCS undersection 200 or 206C (3),
All tax certificates under section 203 or 206C (5),
All statements of Tax deduction or collection under section 200 (3) or section 206C,
All TDS and TCS returns, and
Any other documents that income tax authorities prescribe for quoting TAN.
Not quoting TAN on above documents will result in penalty of ₹ 10,000 under section 272BB. [Only Exception is for TDS deduction under section 194-IA. For 194-IA i.e. TDS on purchase of Property above ₹ 50,00,000, TDS can be deposited with PAN only. For this section TAN is not mandatory.]
Who can apply for TAN?
All individuals and entities who are liable to collect TDS or TCS need to apply for TAN.
How to obtain TAN?
You can apply both through online or offline Mode by filing Form 49B. For offline mode, you need to submit Form 49 at TIN-FC (Tax Information Network Facilitation Centers.
For online mode, you can file Form 49 at below link:
Along with Form 49 you have to pay ₹ 65 as application fee. You can pay it through following modes –
Online Modes – Net Banking, Debit or Credit Cards
On successful submission of online Form 49B, applicant will get 14 digit acknowledgement number. Applicants must print this acknowledgement, sign it and send it to NSDL’s Office. This acknowledgement should reach within 15 days from the date of filing online application. Full Address of NSDL’s office for sending this acknowledgement receipt is –
NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Near Deep Bungalow Chowk,
Pune – 411016
For any queries on status of your TAN application, you can contact NSDL by calling on 020 – 27218080 or through email at firstname.lastname@example.org.
I love blogging and studying taxation. I write articles related to Tax laws and common issues in handling taxation in India. Often, common but small mistakes make things complicated. I write and share them to save precious time of others.