Overview of TAN

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns. Since last few years ITD has revised the structure of TAN. It is a unique 10 digit alphanumeric code. Accordingly, they have issued TAN in this new format to all existing TAN holders.

Types of TAN Applications

There are two types of TAN applications: 1. New TAN Application. 2. Apply for Correction & Change in TAN. This application form should be used when the deductor has never applied for a TAN or does not have a TAN.

Documents Require for the Apply of TAN

1. Application form 49B. 2. And the sign Acknowledgement slip, if you apply for the a new TAN.

Consequences Of Not Quoting TAN

If the 10-digit alphanumeric TAN number is not quoted by eligible persons at requisite places, they can face the prospect of paying a penalty of Rs.10,000 under Section 272BB(1). If a wrong TAN is provided, the same penalty is imposed on the applicant under Section 272BB. Apart from the above-mentioned points, if a TAN is not quoted in places where it is required, the following may also occur: • TDS or TCS returns are not accepted by TIN facilitation centers • Banks to do not accept the challans for TDS/TCS payments

FAQ’s On TAN

Who needs to get the TAN Registration?

Every person who need to deduct a TDS is need to obtain a 10 Digit TAN Number, or every person who sale the property worth more than 50 Lacs, to whom need to deduct the TDS as per income Tax Act 1961 is also require to obtain the TAN Registration.

I have made the mistake in apply of the TAN, Now can I correct the Mistake?

You do not have to worry about the same. For any mistake you can file the rectification form and can correct the mistake.

Is TAN mandatory for deductors and employer?

Yes, to obtain the TAN Number is mandatory for the deduction of the TDS.

Can we make the changes in the TAN?

Yes, correction can be made in the TAN.

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