TAN or Tax Deduction And Collection Account Number is a number issued to anyone who wishes to deduct a certain amount as tax on payments made by them. If you are an employer who pays salary to your employees, you’ll need a TAN. TAN is part of a scheme initiated by the Central Board Of Direct Taxes and helps deduct tax right at the source of income, aiding prevention of tax frauds to some extent.
Before we go any further, let’s discuss the structure of a TAN number, which is a 10-character alphanumeric string. The first alphabets indicate the name of the city or state in which the TAN in question was issued. The 4th alphabet indicates the initial of the employer or the tax deductor. This is followed by 5 random numbers and finally an alphabet for uniqueness.
Different Ways To Apply For TAN
In order to obtain a TAN, an employer can either use the conventional method which would involve visiting the required officials in person or (s)he can submit the application online. The conventional (offline) application process would involve the following steps –
- Collect TAN application forms or Form no. 49B from local vendors or directly from Tax Information Network Facilitation Center (TINFC). Local vendors often keep printed copies of this application form downloaded from the internet. Such forms work fine too.
- Fill Form no. 49B, keeping in mind the instructions to be followed while filling it. Stick to block letters ensure that the address you provide is an Indian address.
- Attach photocopies of identity and address proof documents. And also a fee of INR 62/-. You can make payment in any of the following ways –
- A demand draft (DD) addressed to NSDLTIN, Mumbai
- A cheque which can be deposited at any local HDFC bank branches across India. Make a mention of “TANNSDL” on the cheque.
- After the required enclosures have been added, drop your duly filled Form No. 49B at your nearest TINFC.
This marks the closure of the offline application process. Should everything meet the requirements, officials will get in touch with you with further instruction.
The online method, which is being preferred these days for obvious reasons is simpler and convenient. Following are the instructions for making a TAN application online-
- Directly access the online TAN application form. Before you begin, go through the guidelines thoroughly. Also, you’ll be asked to pick a category under which you fall as an employer. Once you select the category, you’ll be led to the actual application.
- Start filling in the fields with suitable answers. Ensure that errors or incorrect answers are not entered. After you click submit, your form will be reviewed and if found suitable, an acknowledgement will be displayed on your screen. Kindly save this acknowledgement on your computer and on cloud with a suitable filename. The acknowledgement will have the following details:
- Name of the applicant
- Status of the applicant
- Contact details
- Payment details
- A 14 character acknowledgement number
- A black space for signature
- You’ll need to find a way to place your signature through the computer in the space provided for it. Once your signature has been added, and you’ve clicked submit, the process is almost done.
- After successful completion of the form submission, you’ll need to make a payment of INR 62/- through credit/debit card or internet banking. You can also make the payment through cheque or DD as mentioned under the offline method. You’ll need to attach a printed copy of the acknowledgement you saved along with the DD/cheque. Keep in mind that if you are paying through cheque/DD, they should reach the NSDL TIN office at Mumbai within 15 days of you submitting the online application.
Once the NSDL receives and verifies your application, you will be allotted a unique TAN number and the same will be communicated to you.
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