TAN Full Form

The full form of TAN is "Tax Deduction and Collection Account Number". The term "TAN" refers to the Tax Collection Account Number. Every person in charge of tax withholding or collection must obtain this unique ten-digit alphanumeric number. The TAN (Tax Deduction Account Number) issued by the ITA (Interactive Tax Assistant) is required to appear on all TDS (Tax Deducted at Source) statements, per Section 203A of the Income Tax Act of 1961. (Income Tax Department). It is not the same as a PAN (Permanent Account Number), as a PAN (Permanent Account Number) is assigned to a taxpayer, whereas a TAN is assigned to a tax deductor. Both online and offline registration for TAN is possible.

What Is TAN?

The account number used to pay the tax is called TAN. The Income Tax Department of India issues TANs (Tax Collection Account Numbers) to people and businesses who are required by the Income Tax Act of 1961 to withhold or pay tax on payments they make. All TDS (Tax Deducted at Source) reports and Challans used for tax payment must include the TAN in accordance with Section 203A of the Income Tax Department.

After receiving the tax payment, the income tax department verifies it; if the person unintentionally paid more tax than was necessary, the excess tax will be refunded to his account.

Format Of A TAN

The Taxpayer Identification Number (TAN) is a ten-digit alphanumeric number where the last letter (which is an alphabet) and the remaining five digits give the TAN its uniqueness. The first three letters of the TAN denote a city or jurisdiction code, the fourth letter represents the taxpayer's initial, and the remaining five digits are used to identify the taxpayer. (CCH).

Example: The first three characters in the TAN are "BLR," and we know that these letters stand for the city or state where the TAN was issued. Hence, Bangalore is the city in this example. The tax deductor's name's first letter is represented by the fourth character of the TAN, therefore the tax deductor's name begins with an "A" letter. The TAN is now unique due to the next five characters and the final alphabetic letter, which were created by the system. These last 5 numeric characters and the last alphabetic character are also known as check digits.

How To Apply For TAN?

There are two ways for applying for TAN:

1. An application for TAN allotment in offline mode must be submitted in duplicate in Form 49B to any TIN-FC (TIN-Facilitation Centres). The protean-tin-pan website (https://www.protean-tinpan.com) lists the addresses of TIN-FCs (TIN Facilitation Centers). The Simplified Proforma for Incorporating a Company Electronically (SPICe) designated under sub-section (1) of Section 7 of the Act for the incorporation of the firm may be used to submit an application for the allocation of a Tax Deduction Account Number if the applicant is a company that has not been registered under the Companies Act, 2013, Form No. INC (incorporated)-32.

2. An online TAN application can be filled out and filed on the Protean-tin-pan website. The generated acknowledgment of the completed form must also be delivered to Protean-tin-pan..

What Are The Documents Required For TAN Application?

People simply need to submit the application form and any necessary fees when applying online. If applying offline or through an agent, the applicant must provide KYC (Know Your Customer) documents, which include a passport-sized photo and an adhaar card for address verification.

In the case of a partnership corporation, the list of supporting documents that one will have to submit along with the application form:

• A duly filled and signed application form

• A passport-sized photograph of each permitted partner, along with evidence of address for the present office space and ID (Identity Document) of all partners. (Copies must be made on an A4 size paper)

• The most recent collaboration contract

• Company’s account statement for the last three months

• Business registration certificate

• KYC (Know Your Customer) details of one partner, including two passport-sized photographs, government-issued ID proof, and address proof.

How To Get TAN?

By Online Mode:

1. Go to the website https://tin.tin.nsdl.com/tan/index.html and select “Online application for TAN (form 49B)”

2. After selecting the type of deductor from the drop-down menu, click "Select."

3. After you fill out the form with the required data, the screen will appear. Fill out every field that has an asterisk (*).

4. An error message will show up on the screen if any formal level of validation finds the applicant's data to be invalid.

5. A confirmation screen with the applicant's information filled in will be displayed if there are no formal-level problems.

6. The user has the choice of updating a form by selecting the Edit option if any changes need to be made.

7. If the information provided is accurate, the applicant may select the confirm option.

8. An acknowledgment slip will be produced once the application fees have been successfully paid.

9. The applicant must print, save, and send the acknowledgment to NSDL (National Securities Depository Limited).

By Using Digital Signature Certificate

1. Select the ‘Apply Online’ option in the TAN module from visiting the website https://tin.tin.nsdl.com/tan/form49B.html

2. Now, select the Digital Signature Certificates (DSC) -based online TAN application option.

3. After that, pick the correct candidate category and complete the online application.

4. Add the digital signature to the form after inserting the authorized signatory's Digital Signature Certificate (DSC).

5. Applications based on DSC (Digital Signature Certificates) can only be paid for online. Pay the application cost online, and a receipt with a 14-digit acknowledgment number will be generated.

6. For DSC-based TAN applications, there is no need to send any document to NSDL (National Securities Depository Limited) e-Gov website.

By Offline Mode:

1. Download the TAN application form from the TIN FCs (TIN-Facilitation Centres) or the TIN (Tax Identification Numbers) website.

2. The application must be filled out in block letters and most likely in English. Only Indian addresses are acceptable for the applicant's address.

3. Properly filled and signed application form 49B has to be submitted to the closest TIN-FC (TIN-Facilitation Centres).

4. A Notary Public, a Magistrate, or a Gazetted Officer shall certify the left-hand thumb impression if it is utilized, using their official seal and stamp.

5. No extra documents need to be submitted other than form 49B.

6. After completing the form, a processing charge of Rs. 65 inclusive of GST (Goods and Service Tax) must be paid at the counter of TIN-FC. (TIN-Facilitation Centres).

Documents Required To Be Submitted Along With A TAN Application

• There is no need to provide any documentation for offline.

• If the application is submitted online, the applicant must receive and sign the acknowledgment that is generated once the application has been submitted successfully and the processing cost has been paid for the TAN application. After that, the acknowledgment must be given by postal mail to NSDL-TIN facilitation centers.

How To Pay The Application Fees For TAN Application?

Ways to pay the TAN application fee are

• Demand draft or Cheque: Demand draft/cheque shall be in favor of 'NSDL - TIN' (National Securities Depository Limited - Tax Information Network). The demand draft shall be payable in Mumbai while applicants making payment by cheque shall deposit a local cheque (drawn from any bank) with any HDFC (Housing Development Finance Corporation Limited) Bank branch across the country except Dahej. The name and acknowledgment number of the applicant should be mentioned on the reverse of the demand draft/cheque.

• Credit card/Debit Card: If the applicant uses a credit card or debit card to pay, the bank providing the payment gateway service will tack on an extra fee of up to 2% (plus any applicable taxes) to the TAN application fee. However, the use of a debit card, credit card, or net banking is not available to the federal government, state governments, or statutory/autonomous bodies.

• Net Banking: For the payment gateway feature, applicants using Net Banking will be assessed an extra surcharge of Rs. 4.00 plus GST Tax.

• Cash- If the offline form is submitted at TIN FC (TIN-Facilitation Center).

How To Check The Status Of The TAN Application Online?

• By visiting the NSDL-TIN website (URL: https://tin.tin.nsdl.com/pantan/StatusTrack.html) and selecting the status track option, the application deductor can know the status of his or her TAN application. The 14-digit acknowledgment number should be provided by the applicant after three days of submitting the application.

• In addition to checking the status of the TAN application online, the applicant may also call the TAN Call Center at (020) 27218080 or send an SMS (Short Message Service) to 57575.