What is TAN Registration?
TAN i.e. Tax Deduction and Collection Account Number is a 10 digit alphanumeric number, e.g. DELM12345L, required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed.
TAN structure:
- The first four TAN digits are alphabets, the next five are binary, and the final digit is an alphabet.
- The first three alphabets stand for the authority codes.
- The initial alphabet represents the TAN holder's name, which can be that of a person, business, or other entity, and is represented by the fourth alphabet of the TAN.
Key Features of TAN
1. Mandatory to quote
It is mandatory to quote TAN on TDS returns and challans. It is also required to be quoted in all correspondences with the IT Department.
2. Validity
Once a TAN is issued, it is valid for lifetime. However, TDS Filings must be made quarterly on the 31st day of July, October, January, and May. Non-filing of TDS filings within the due date will attract a penalty.
3. Multiple TAN
You can have multiple TAN for a single PAN. You can apply for different TAN for different branches of the same company.
Benefits of TAN
- It is a lifetime-valid unique number.
- In the end, deductions including wages, interest, and dividends are made using TAN.
- When submitting taxes, the challan type 281 should be used, and the deductor's name and address should be appropriately typed together with the 10 digit TAN number.
- Because TDS Return certificates are given by a person or business that holds TAN, the taxpayer has the chance to find out how much tax they have paid.
- The taxpayer can also use this TDS certificate as evidence of tax payment in any type of complaint.
- All tax documents must contain TAN information.
TAN Registration Process (Online Mode):
- The National Securities Depository Limited (NSDL) department's Tax Information Network (TIN) website can be accessed to receive TAN;
- Select Service > Drop-down Menu > TAN > Apply online > New TAN from the drop-down menu on the website;
- After selecting New TAN, complete all the necessary fields and then submit;
- You will see an acknowledgment screen with the details of payment after choosing the payment method enter the required information;
- The candidate must cover the TAN registration costs;
- On the other hand, if payment is made offline, the duly signed acceptance receipt and a demand draft (DD) or challan made out to NSDL-TIN should be delivered to NSDL's office address;
- Download the Form 49B from the NSDL website, fill it out with the necessary information, and attach a DD or challan with the NSDL-TIN before mailing it to the NSDL office;
- On the back of the DD/Cheque, the applicant's name and acknowledgment number should be written;
- Upon successful e-payment, an acknowledgment will be shown;
- The acknowledgement must be saved, printed, and submitted to NSDL as instructed under 'document submission' by the applicant.
Obtain expert assistance to register for TAN through Barrister Babu.
Documents Required for TAN Registration
- Aadhaar cards or another form of address verification are acceptable
- Name, address, contact information, the signature of the applicant
- LLP or firm incorporation certificate
- The acknowledgment slip is generated after the aforementioned information has been added
- The acknowledgment receipt should be saved and printed for future use
- A credit card, debit card, or net banking option can be used if the payment is to be made online
- If the payment method is offline, a Demand Draft (DD) or challan with the reference number NSDL-TIN must be provided to the NSDL office.
Why Barrister Babu?
Please be aware that the current procedure for requesting and acquiring a TAN number is being changed by the Indian government. The Ministry of Corporate Affairs (MCA) and the Central Board of Direct Taxes (CBDT) has already issued directives that eliminate the need for organisations to file both TAN and PAN card. Also filing wrong information on the official website may result in complicating the process. It is highly recommended to get in touch with our legal experts for procuring a TAN. The team will provide complete support and complete the whole process without much delay.
