To apply for a Tax Deduction and Collection Account Number (TAN) in India, you need to submit specific documents and follow the prescribed procedures. Here is a list of the key documents and information typically required for a TAN application:
Form 49B: The application form for TAN. This can be filled online or offline.
Proof of Identity: For the individual signing the application, you may need:
PAN card
Aadhaar card
Voter ID card
Passport
Driving license
Proof of Address: This should be for the entity (company, firm, etc.) applying for TAN:
Utility bills (electricity, water, gas, telephone)
Bank account statement
Property tax receipt
Registered lease/rent agreement
Certificate of Incorporation (if applicable): For companies, a copy of the Certificate of Incorporation.
Partnership Deed (if applicable): For partnerships, a copy of the Partnership Deed.
Trust Deed (if applicable): For trusts, a copy of the Trust Deed.
Registration Certificate (if applicable): For societies, a copy of the Registration Certificate issued by the Registrar of Societies.
Authorization Letter: If the application is being submitted by an authorized representative, a letter of authorization on the company’s letterhead is required.
Address Proof of Entity:
For companies: the registered office address proof.
For firms/partnerships: office address proof.
Details of the Deductor/Collector:
Name and designation of the person responsible for making payments/collecting tax.
PAN of the entity and the person responsible.
Offline Application Procedure:
Obtain Form 49B: Obtain the form from TIN facilitation centers or download it from the NSDL/UTIITSL website.
Fill the Form: Fill in the required details in the form.
Attach Documents: Attach the necessary documents as listed above.
Submit: Submit the form along with the documents to the TIN facilitation center.
Rules and regulations for tan application
The rules and regulations for TAN (Tax Deduction and Collection Account Number) in India are set by the Income Tax Department. TAN is essential for entities that are required to deduct or collect tax at source (TDS/TCS). Here are the key rules and regulations related to TAN:
1. Requirement of TAN
Every entity liable to deduct TDS or collect TCS must obtain a TAN.
This includes businesses, individuals, government departments, and others specified under the Income Tax Act.
2. Application for TAN
TAN can be applied for online via the NSDL-TIN website or through offline submission of Form 49B at TIN Facilitation Centers.
The application requires specific details such as the entity's name, address, and the nature of the entity (e.g., individual, company, etc.).
3. Structure of TAN
TAN consists of 10 digits: a combination of letters and numbers (e.g., ABCD12345E).
The first three characters are alphabetic, representing the jurisdiction code.
The fourth character is the initial of the entity's name.
The next five characters are numeric, and the last character is an alphabetic check digit.
4. Usage of TAN
TAN must be quoted in all TDS/TCS returns, payment challans, certificates, and other related documents.
Failing to quote TAN in these documents can attract penalties.
Entities with TAN are required to file quarterly TDS/TCS returns.
The due dates for these returns vary but generally fall at the end of the month following the quarter.
6. Issuance of TDS/TCS Certificates
Deductors/collectors must issue TDS/TCS certificates to the payees.
Forms used include Form 16/16A for TDS and Form 27D for TCS.
These certificates must be issued within the prescribed time frame after the end of the financial year or quarter.
7. Penalties and Consequences
Penalties for not obtaining TAN: A fine of ₹10,000.
Penalties for not quoting TAN in specified documents: ₹10,000.
Late filing fees: ₹200 per day for delay in filing TDS/TCS returns.
Other consequences include disallowance of expenditure for which TDS was not deducted.
8. Correction and Updates
Changes or corrections to TAN details can be made by submitting a 'Form for Changes or Correction in TAN Data' to the NSDL.
This is essential for maintaining accurate records and compliance.
9. Surrender of TAN
If an entity no longer needs a TAN (e.g., it ceases to exist or no longer has TDS/TCS obligations), it should surrender the TAN by notifying the Income Tax Department.
10. Verification of TAN
TAN can be verified online via the NSDL-TIN website.
This helps ensure that the TAN used is valid and correctly associated with the entity.
11. Compliance
Regular updates and guidelines are issued by the Income Tax Department.
It is essential to stay informed about changes to ensure compliance with the latest regulations.
12. Support and Queries
For any queries or issues related to TAN, entities can contact the TIN-NSDL helpline or visit their official website.
By adhering to these rules and regulations, entities can ensure smooth and compliant handling of TDS/TCS responsibilities, avoiding penalties and legal issues.
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Which form is required to apply for a TAN in India?
A) Form 49A
B) Form 60
C) Form 49B
D) Form 16
Answer: C) Form 49B
What is the penalty for not obtaining a TAN when required?
A) ₹5,000
B) ₹10,000
C) ₹15,000
D) ₹20,000
Answer: B) ₹10,000
Which of the following documents can be used as proof of identity for an individual signing the TAN application?
A) Passport
B) Utility bill
C) Property tax receipt
D) Bank account statement
Answer: A) Passport
TAN consists of how many characters?
A) 8
B) 10
C) 12
D) 15
Answer: B) 10
Which document is required for companies as proof of address when applying for a TAN?
A) Partnership Deed
B) Trust Deed
C) Certificate of Incorporation
D) Voter ID card
Answer: C) Certificate of Incorporation
What must be quoted in all TDS/TCS returns and related documents?
A) PAN
B) Aadhar Number
C) TAN
D) GSTIN
Answer: C) TAN
Entities with TAN are required to file TDS/TCS returns how often?
A) Monthly
B) Quarterly
C) Annually
D) Semi-Annually
Answer: B) Quarterly
What is the fine for failing to quote TAN in specified documents?
A) ₹5,000
B) ₹7,500
C) ₹10,000
D) ₹15,000
Answer: C) ₹10,000
Which of the following is NOT required as proof of address for a TAN application?
A) Utility bills
B) Bank account statement
C) Certificate of Incorporation
D) Passport
Answer: D) Passport
Where can one verify the TAN online?
A) GSTN Portal
B) NSDL-TIN website
C) MCA Portal
D) Income Tax e-Filing portal
Answer: B) NSDL-TIN website