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Know Your TAN

TAN is a 10 digit alphanumeric number. The full form of TAN is Tax Deduction or Collection Account Number. According to Section 203A, it is necessary to quote this number when you become liable to either deduct or collect tax (i.e. liable to deduct TDS or collect TCS), make payment through challan, or file TDS returns.

What Is The TAN Structure?

Tan is a 10 digit alphanumeric number. The structure of TAN is given by WXYZ 12345A. WXYZ - The first 4 characters are alphabets. 12345 - The next 5 characters are digits. A - 1 the last character is an alphabet

  • The first 3 alphabets of TAN No: represent the city where the TAN has been allocated.
  • The fourth character of the TAN represents the initial letter of the name of a person.
  • All 5 digits and the last alphabet of the TAN are automated characters generated by the system.

Why Is The TAN Essential?

If you fail to provide the TAN No: in documents, it can result in a penalty of Rs. 10,000. According to Section 203A of the Income Tax Act 1961, it is essential to provide the TAN in the following documents.

  • TDS statements i.e. returns
  • Statement of financial transactions or reportable accounts
  • TCS statements i.e. returns
  • TDS/TCS certificates
  • Other documents, as prescribed
  • Challans for the payment of TDS/TCS

How To Apply For TAN?

The TIN-NSDL and TIN facilitation centers allocate the TAN to businesses, firms, and individuals on behalf of the income tax department. There are two types of TAN applications - application for allotment and application for change or correction.

1. How To Apply For Allotment Of New TAN

  • The application for the allotment of new TAN can be made online or offline.
  • For online, you can visit the NSDL-TIN website. You have to fill in the details such as name, address, contact number, nationality, PAN number, and existing TAN. When you upload the correct TAN allotment application, a confirmation will come online.
  • For offline use, he/she should visit the nearest TIN-Facilitation Center (TIN-FC) and submit the application in Form 49B. The addresses of the TIN-FCs will be given in the NSDL-TIN website.
  • To get Form 49B, you can download it from the income tax department website for free, collect it from a TIN facilitation center, or print or get it photocopied legibly in a format specified by the income tax department.
  • The TAN application of Rs. 65 has to be paid.

2. How To Apply For Change Or Correction In TAN Data For Allotted TAN?

  • If any changes or corrections are required in TAN data for the allotted TAN, then the change or correction form has to be filled.
  • The change or correction form contains details like the 10 digit TAN, deductor category, name, address, nationality, and PAN. It also contains rows to specify the alterations or corrections required.
  • Applicants have to submit a TAN allotment letter issued by the IT department or a printout of the TAN details as a proof for TAN.
  • The fee charged for the correction of the application is Rs. 63.

How To Know The TAN Number Online?

TAN does not come in the same physical form as the PAN. Only an allotment letter is allotted as a proof for TAN, so we cannot keep it ready all the time. The digits are complicated, so the computer memory cannot remember it also. Therefore, there is a simple process to check your TAN number online. Follow these simple steps to know the TAN number online.

Step 1: Visit the income tax e-filing portal - www.incometaxindiaefiling.gov.inE-filling-IM-1

Step 2: Click on Know Tan Details under Quick Links on the left hand side. You will be redirected to the following screen.E-filling-IM-2

Step 3: Select the Name under the TAN Search option

Step 4: Choose the category of deductor

Step 5: Type the name of the deductor

Step 6: Select the State

Step 7: Enter the registered mobile number.

Step 8: Click on ‘Continue’

Step 9: Enter the one-time password (OTP) you recieve on the registered mobile number in the corresponding screen.

Step 10: Next, click on ‘Validate’

Step 11: The details are displayed on the corresponding screen.

How To Register To Know TAN Details - New User

It is not essential for a new user to register on the income tax e-filing website for knowing the TAN details. However, he can register for other benefits. The steps for registration are as follows:

  • Go to the website: www.incometaxindiaefiling.gov.in
  • Select ‘Register Yourself’ as highlighted above. You will be forwarded to the below screen.
  • E-filling-IM-3
  • Next, select the user type in the above screen and click on ‘Continue’. You will be forwarded to the screen as shown below.
  • E-filling-IM-4
  • Provide the details like PAN, last name, middle name, first name, date of birth, membership number, and enrollment date. Click on Continue.
  • Enter all the details in the registration form and click on ‘Continue’.
  • Post this, follow the guidelines mentioned in the corresponding screens.

How Is The TAN Different From The PAN?

Everyone should mandatorily possess the Permanent Account Number (PAN) to file his/her income tax returns. Whereas the tax deduction and collection number (TAN) is required by only those who are liable to deduct TDS or collect TCS under the Income Tax Act.

What Are The Documents That Have To Be Submitted Along With The TAN Application?

As such documents are not needed for the TAN allotment application. But, if the online mode is chosen, the confirmation that comes up on the correct submission of the TAN allotment application has to be downloaded, duly signed, and delivered to NSDL by post.

How To Track The Status Of Your PAN Application?

You can track the status of your PAN application through the following ways:

  • using the 14 digit unique acknowledgement number.
  • reaching the TAN call center (020- 27218080)
  • sending an SMS (NSDLTAN) to 57575

How Will You Find Out About The TAN Jurisdiction Building Name?

You can know your TAN Jurisdiction building name through the following steps:

  • Visit https://www.incometaxindia.gov.in/Pages/default.aspx
  • Select ‘Jurisdiction’ under the ‘Important Links’ tabE-filling-IM-5
  • Select the state
  • When you do so, a PDF file will open.
  • The building name of the TAN jurisdiction can be found in the list.

How To Pay The TAN Application Or Correction Fee?

You can pay the TAN application or correction fee in the following ways:

  • DD: Submit a DD in favor of ‘NSDL-TIN’ payable at Mumbai. The applicant has to write the name and unique 14 digit acknowledgement number on the reverse side of the demand draft.
  • Cheque: A local cheque made in favor of ‘NSDL-TIN’ has to be deposited with any branch of HDFC Bank.The applicant should mandatorily write TANNSDL on the deposit slip
  • Credit card
  • Debit card
  • Netbanking

FAQs

1. What are the penalties in the income tax act for not mentioning the TAN and for specifying the incorrect TAN?

There are penalties in the income tax act for not mentioning the TAN or mentioning the incorrect TAN. A penalty of Rs.10,000 will be levied if one does not mention the TAN or specifies the incorrect TAN No: in the TDS return.

2. What is a duplicate TAN?

If you already hold a valid TAN and get an additional one, the extra one is called the duplicate TAN. Having more than one TAN except for different branches or divisions of an organization is illegal.

3. How Can I know my TAN No: from my PAN No:?

Log on to the website of www.incometaxindiaefiling.gov.in. Post that, click on the ‘services’ tab on the left side of the home page. Post that, go to an option called ‘Know Your PAN’. Post this, log in by using your User ID and password. Then click on the TAN option.

4. Can I download the TAN certificate?

Deductors whose TAN is invalid can apply for one by submitting a duly signed Form 49B to any of the TIN-FCs managed by NSDL.

5. How can I get a TAN number in India?

You can apply for a TAN number online in India at the NSDL-TIN website. You can then fill and submit the form online. As soon as you click on the ‘submit’ button, a 14 digit acknowledgement number is generated on the screen

6. When can I get my TAN cancelled?

You can get your TAN cancelled

  • When you have multiple TANS
  • If your TDS is not deducted anymore, you will no longer require the TAN.

7. State the difference between TAN, TIN, and PAN?

A TIN is used to acknowledge a business person or identity registered under VAT. It is issued by the commercial tax department of each state government. The TAN is issued to the person/entity who deducts tax at the source. It is issued to all taxpayers - individuals, companies, firms, and foreign citizens.

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