What is TAN?
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.
Who is required to obtain TAN?
Under the Income Tax Act,1961, every person making payment or crediting income of specified types to another person is required to deduct a specific proportion of amount payable/creditable at the time of making payment or giving credit, whichever is earlier and deposit the sum so deducted i.e. TDS. Prior to making any such deduction, every such person shall have to apply to the Assessing Officer for allotment of a tax deduction account number (TAN) under section 203A of the Income Tax Act.
Any organization deducting tax at source is required to quote the TAN in the following documents:
- All challans while depositing the tax so deducted.
- All certificates issued against the tax deducted.
- All returns furnished in respect of tax deducted at source.
- All other documents pertaining to such transaction as may be prescribed.
How to obtain TAN?
An application for allotment of TAN needs to be filed in Form 49B and submitted at any of the TIN Facilitation Centre meant for receipt of e-TDS returns. A plain paper application is not accepted for TAN. TAN Application can be made only on Form 49B.
No major documents are required to be filed with the application for allotment of TAN. However, where the application is being made online, the acknowledgment which is generated after filling up the form will be required to be forwarded to NSDL. Also, generally a copy of PAN Card of the applicant and a copy of incorporation certificate (in case of a company) is submitted with the form.