written by khatabook | November 21, 2022

Important Provisions and Compliances of TAN – TDS Filing

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Table of Content


Online IT returns, e-TDS/TCS returns, and many more e-filing forms are making tax compliance smooth, quick, and accessible to all taxpayers. If you are wondering whether you must apply for a TAN number under the latest Income tax provisions. Check the conditions regarding who must apply for TAN (Tax Deduction Account Number or Tax Collection Account Number) mandatorily according to the updated tax provisions. If you are liable to obtain a TAN number, continue reading to learn the detailed process of applying for TAN in this blog. 

The new TAN number is the ten-digit alphanumeric number or code allotted by the Income Tax Department. TAN no. structure has changed in the past years, and the TAN allotted for each person will be unique and different from other TAN holders. Now anyone can easily apply for TAN, track TAN's application status, and update or change TAN data through the official online website of the Income Tax Department. 

One can also apply/track/update TAN on the NSDL-TIN website. Deductors should find new TAN from the IT Department site before it is incorporated in their e-TDS statement to avoid further inconvenience. Read on to learn more about TAN-TDS filing provisions. 

Did You Know? TAN (Tax Deduction/Collection Account Number) and PAN (permanent account number) are not the same and are different. The PAN number should be obtained by all the persons who file income tax returns, while TAN applies to only a particular group of assesses. 

Who Must Mandatorily Apply For TAN? 

According to the relevant provisions of the Income Tax Act, every person (Person defined under IT Act, section 2(31)) liable to deduct tax at source (TDS) or collect tax at source (TCS) is required to obtain a TAN number. In some cases, PAN numbers can be used instead of TAN. However, only the persons liable to deduct tax under certain income tax sections, such as section 194IA, section 194-IB, and section 194M, can quote PAN instead of TAN. The above exception cannot be used as an excuse by the remaining persons for not obtaining TAN

The ‘Person’ according to section 2(31), includes individuals, Hindu undivided families (HUFs), companies, partnership firms, LLPs, the association of persons (AOPs), the body of individuals (BOIs), local authorities, and any artificial judicial persons (AJPs). 

Also Read: Income tax Calculator - Calculate Your Taxes For FY 2021-22 Use Tax Calculator Online

What Is the Purpose of TAN, And Is It Necessary? 

TAN no. is the unique 10-digit alpha-numeric number/code that should be mandatorily obtained by all the persons liable for deducting or collecting tax. The TAN number can be obtained by filing a TAN application. According to section 203A of the Income Tax Act, 1961, the TAN number must be quoted on all TDS statements. Also, the TAN number must be quoted in all TDS/TCS returns, e-TDS/TCS returns, TDS/TCS payment challans, TDS/TCS certificates, and other prescribed documents under the act. 

Suppose the TAN of the deductor or company TAN number is not quoted in the TDS mentioned above or the TCS documents. In that case, these returns will be rejected and are not accepted by the TIN facilitation centres (TIN-FC). Banks also do not take challans for TDS/TCS payments. According to section 272BB, not quoting TAN in the prescribed documents attracts a penalty of ₹10,000. 

Structure of TAN Number 

As already mentioned, TAN no. is a ten-digit alphanumeric number that contains both alphabets and numbers. The capital letters of the alphabet make up the first four digits. The fifth through ninth digits are all numbers. Once more, the tenth digit is in capital letters. A TAN number, for instance, should look like PDES03028F.

 The following components constitute the structure of TAN as follows: 

  • Out of the first four alphabets, three alphabets indicate the jurisdiction where the TAN no. is issued
  • The fourth letter is the initial of the name of the concerned individual or entity 
  • The following five numerical or the numbers in the middle are unique numbers generated by the system
  • The last alphabet is also a special letter generated by the system. 

How To Apply for TAN Registration? 

Once the person is mandatorily required to obtain the TAN number and quote it in the TDS/TCS documents, then that person must apply for TAN registration. One can get TAN registration through two modes as follows: 

  1. Offline Application

If you chose the offline mode, an application for TAN allotment should be submitted. This TAN allotment application should be filed in Form 49B and submitted to the nearest TIN Facilitation Centre. You can check your location's closest available TIN-FCs and PAN centres at the NSDL-TIN online website. 

No other documents are required for offline TAN registration. The Application for Allotment of TAN (Form 49B) must be filled and submitted. Form 49B application can be downloaded from the NSDL online website or available at the TIN Facilitation Centres. 

  1. Online Mode of Registration 

Thanks to the increasing digital transformation in the country. Now anyone can apply for TAN registration online from the comfort of anywhere. The official NSDL website, now newly known as Protean, provides hassle-free online TAN registration. Or you can obtain TAN allotment from this quick NSDL-TIN window. However, before filling out Form 49B, thoroughly read the guidelines for understanding the online TAN registration application process. 

Also Read: Step-by-Step Guide for E-Verifying Your Income Tax Return

Online TAN Application Process: 

 

  • Visit the online NSDL-TIN website 
  • Go to the bottom of the page of the above link and click on “category of deductors.” 
  • Select the ‘category of deductors’ from the drop-down menu and click the select button
  • Fill in all the required details, especially the fields marked with this (*) symbol.

 

 

  • In case of any errors, rectify and re-submit the form 
  • The confirmation screen with the data just filled in by the applicant will be displayed on the screen 
  • Now the applicant can edit or confirm the details accordingly 
  • The acknowledgement screen will appear on the confirmation
  • This acknowledgement consists of a unique 14-digit acknowledgement number, essential information of the applicant, and space for signature 
  • After the successful payment, again a disclosure is displayed 
  • This acknowledgement should be saved and sent to the NSDL for the submission of documents purpose. 

Status of TAN Application 

After the offline/online TAN application is successfully submitted, one can track the application status on the NSDL-TIN website. On the website, click the “track your TAN application status” quick link, which will direct you to the application status page. Here, select the application type as “TAN – New/Change Request” and enter the acknowledgement number (14-digit acknowledgement number) provided to you before. Click submit and easily track your TAN application anytime. 

Also Read: Penalty for Late Filing of Income Tax Return

Can the TAN Data be Changed After the TAN Allotment Is Completed? 

After you obtain the TAN allotment along with the unique TAN registration number, you want to update your TAN data or information like phone number, address, etc., or correct some of your details. You can go ahead and update your TAN data on the NSDL-TIN website. Here in this link, you can find the “Apply for Changes or Correction in TAN data” at the bottom of the page. 

Now you can select the “category of deductors” and click the select button. Change/correct the information you wish to and enter the TAN allotment number as proof that you have been allotted the TAN. 

Duplicate TAN 

The duplicate TAN is the one that is not an original TAN. Meaning duplicate TAN can be accidentally obtained by the same person who already has an actual TAN allotted earlier. This situation pictures the two TANs for the same person. However, two TANs are optional for the same person as one TAN or single TAN no. can be used for all TDS and TCS purposes. 

Also, possessing two TANs by the same individual or entity is illegal. In some instances, where a single entity has different branches, separate or multiple TANs can be acquired by the company for its various divisions. In case of duplicate TAN, the original TAN should be used as always by the person. The duplicate TAN should be then surrendered for cancellation by using the “Form for Changes or Correction in TAN” on the NSDL website. 

Know Your TAN 

After the TAN is obtained along with the TAN registration number, one might want to review their TAN details. Or in some instances, one might need to remember their TAN and want to know the TAN details. In these situations where you want to search/know your TAN, retrieving your TAN details is simple. 

Follow the detailed step-by-step process below to search/know your details. 

Also Read: How To File ITR (Income Tax Returns) Online – Income Tax E-filing Guide For FY 2020-21

Process to Search and Know your TAN: 

  • Visit the official online website of the Income Tax Department, e-Filing
  • On the home page, you will find a bunch of quick links 
  • Click “Know TAN details” appearing in the quick links
  • Now the “Know TAN details” page will appear on your screen  
  • Select the ‘Name’ or ‘TAN’ under the “TAN Search” option 
  • Select the ‘Category of Deductor’ under which TAN is registered 
  • Enter the ‘Name of Deductor’ or ‘TAN of Deductor’ as the case may be 
  • Select your ‘State’ 
  • Enter the registered mobile number 
  • Click on ‘Continue’
  • Enter the Time Password (OTP) that is sent to your registered mobile number on the next screen
  • Now, click on ‘Validate.’ 
  • TAN details are displayed on the corresponding screen 

Conclusion 

Now you know the essential compliances related to TAN-TDS filing. From the provisions of persons required to obtain TAN no., the importance of TAN, and the structure of TAN to application for TAN registration, the process of TAN registration, and other essential provisions, one can get familiarised with the important requirements of TAN-TDS filing in this blog. 

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FAQs

Q: How can I apply for a TAN number?

Ans:

One can obtain a TAN number offline or online TAN registration. The application Form 49B should be filled out by the applicant, and the required documents should be sent to the NSDL.

Q: What happens when the TAN number is not quoted on the TDS/TCS returns?

Ans:

As per section 272BB, not quoting TAN or failing to apply for TAN in the specified and prescribed documents under the IT Act attracts ₹10,000 penalties. TIN Facilitation Centers do not accept TDS/TCS returns with no TAN number.

Q: Why TAN number is necessary?

Ans:

Every person responsible for deducting or collecting tax at source should mandatorily obtain the TAN allotment and TAN registration number. This TAN number should be quoted on all the TDS and TCS certificates, e-returns, forms, challans, and documents.

Q: What is the TAN number and TAN no. complete form?

Ans:

The TAN number is a ten-digit alphanumeric number unique for each TAN holder. The TAN no. complete form is the ‘Tax Deduction Account Number or ‘Tax Collection Account Number.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.