The word TAN stands for Tax Deduction & Collection Account Number. This number is basically a 10-digit alphanumeric code being generated by the Income Tax Department and is considered to be a unique identification number of a tax deductor. According to 203A which is the Income Tax Act 1961, it is highly essential to inculcate TAN in almost all communications via Income Tax Department for TDS. If in case the payee fails to get the TAN number or else provides the wrong TAN number while filing TDS, then, as per section 203A, there is a strong penalty of Rs 10,000. Therefore, those who are liable to deduct tax must get a TAN number.

Importance Of TAN For Businesses

In order to file tax returns, the TAN number plays a major role. Every business irrespective of size has been made mandatory by the Government of India to register for a TAN number. For different payments nature, there are different limits. Taking an example of rent higher than 1,50,000 or a professional fee over Rs 35000 requires a TDS deduction. In all such cases, businesses that are taking services must deduct tax at source and the declaration will require a TAN number for this.

The Procedure Of Applying TAN

Though, TAN can be applied both online and offline. The below-mentioned steps will help you to Apply for a TAN number online.

• First, you need to login NSDL (Tax Information Network website)
• Now click on the option of Services and then hit the TAN option
• There in the left-hand bar, you will find Apply Online button. Click on it.
• From the drop-down menu, click the New TAN option
• There you will be required to fill out 49B form with the required details
• Last, hit the submit button.

As soon as you submit the details, you will be directed to the payment page. There you will be asked to pay an amount of a very nominal charge of Rs 62 for the TAN application. The payment can be made online via using a debit/credit card or net banking. The other option for payment is via demand draft or challan. 

After you proceed with the payment option, you will be redirected to an acknowledgment screen where you will see the following:

• Application Status
• 14-digit acknowledgment number
• Applicant name
• Contact details including address, email, and contact number
• Details of the payment done
• Column for Signature.

If you have chosen the payment option via online, this means you have already submitted the TAN application successfully. But, in case you have chosen the offline payment option i.e. via DD or challan, then a duly signed acknowledgment recipient with DD/challan needs to be sent to the NSDL office.

If you need to apply for a new TAN number, the other option is to download form 49B online and then fill in the necessary details as per the instruction and then send it to the NSDL office with DD/Challan.

Knowing Your TAN

If in case you already have a TAN number, but are unable to recall it now. In such a situation, you can easily find it online with the help of the Know Your TAN option being provided by the Income Tax Department.

• For this, go to the Income Tax e-filing website
• On the left-hand bar, you will see the Know Your TAN option
• Click on it
• Choose the Deductor category like branch/company/individual.
• Fill in the necessary details like Name, mobile number, state, and deductor category as per mentioned on TAN
• Now hit the continue button.
• You will be provided with your TAN number on your registered mobile number similar to your provided at the time of TAN signing up.

Thus, for any business, the TAN number is highly requisite. Especially in India, be it companies or individuals deducting or collecting taxes must have a TAN number in order to run the process smoothly and avoid any sort of penalties.

Important FAQs

• What is the Process of Getting a TAN Number for My Business?

Applicants who choose to apply via online or offline, for them the TAN number will be provided by the Income Tax Department. TAN application can be done either on the NSDL-TIN website or by visiting the nearest TIN Facilitation Centre.

• Is the TAN Number Chargeable?

Yes, a very nominal charge is required to be paid to get the TAN number.

• How Can I Check My TAN Application Status?

There is a tracking status section available on the NSDL-TIN website. There you can check the stats of your application 3 days after the application.