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April 18, 2018
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If you are planning to start your own business and you will be paying salaries to your employees, then you must have a TAN Number. In this guide by H&R Block learn more about how to register for Tax Deduction and Collection Account Number and it's importance.

Tax Deduction and Collection Account Number

Last Update Date : May 10, 2018

TAN - Tax Deduction and Collection Account Number

The most important resource of any organisation is its workforce. The greatest motivation for a person to work in any organisation is the salary he receives. An employee receives the salary under his Permanent Account Number (PAN) and the employer pays this salary under his Tax Deduction and Collection Account Number (TAN). The following article will give detailed information about the TAN.

What is TAN Number?

Tax deduction and collection Account Number or commonly known as TAN is a 10 digit alphanumeric number required to be obtained by all persons who are responsible for deducting or collecting the tax. However, a person who is required to deduct tax under section 194-IA can use PAN in place of TAN as he is not required to obtain TAN. TAN is issued by the Income-tax Department to all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).

Components of a TAN Number

  • TAN is a ten-character alphanumeric number. The first four characters are alphabets, the next characters digits are numbers, and the last character is the alphabet.
  • For Example, if Mr Chinmay wants to start his own company of carbon fibre panels, then his TAN would be: AMN C 24292 K
  • Here, the first 3 alphabets are random while the fourth alphabet is the first letter of the name of the applicant.

Difference between PAN and TAN

TAN is a number which is assigned to a person who is liable to deduct or collect tax at source. Whereas, PAN is a number which is issued to a person who earns income and is liable to pay taxes.

Illustration:

Mr Chinmay is the owner of the company, and Mr Greenio is the employee of the company. Therefore, as Mr Chinmay will be having a TAN as he is liable to deduct or collect tax at source and Mr Greenio will be having a PAN as he is liable to pay taxes. Also, Mr Chinmay will be having his PAN, as he is also liable to pay taxes collected to the government as well as taxes on his own income though he is the employer.

How to get TAN Number?

Online TAN Application

The simplest way to apply for TAN is by using the online portal facility of the Tax Information Network

  • Select the category that you belong to like Company/Branch/Individual etc.
  • Fill in the form with all the correct details and click confirm
  • On confirmation, an acknowledgement will appear on the screen
    This acknowledgement consists of:

    1. Unique 14-digit acknowledgement number
    2. Status of the person
    3. Name of the person
    4. Contact details
    5. Payment details
    6. Signature
  • The print of this acknowledgement should be taken, and the applicant should sign the acknowledgement.
  • If the application is for other than an individual, the authorised person should sign the acknowledgement with the seal and stamp.
  • If thumb impression is used, it should be attested by Magistrate/Notary Public/Gazetted Officer.
  • This acknowledgement receipt along with Demand Draft must be sent to the following address:
    1. NSDL – e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016
  • The envelope carrying the receipt and DD must be entitled as Application for TAN – Acknowledgement Number.
  • The receipt should be received by NSDL in a maximum of 15 days from the date of application.
  • If thumb impression is used, it should be attested by Magistrate/Notary Public/Gazetted Officer.
  • The TAN will be allotted to the applicant within 5 working days through email if online payment is used.
  • The TAN allotment letter will be sent only if the acknowledgement receipt is received within the deadline.

Offline Method for TAN Application

  • You can download the form 49B, duly fill the details in and submit it to the TIN- Facilitation Centres.
  • Also true copies of identity proof and address proofs of the applicant.

Payment of TAN Application Form Fees

The TAN application form fees are Rs 55 along with 18% GST, which comes out to be Rs 65.
Following are the modes of payment:

  • Cash at the TIN-FC (In case of the Offline mode of payment)
  • Any local Cheque (In favour of NSDL – TIN) should be deposited in any HDFC Branch across India except Dahej. The Name on the deposit slip should be mentioned as TANNSDL.
  • Demand Draft (In favour of NSDL – TIN, payable at Mumbai)

In case of Cheque and Demand draft, the name of the applicant and the acknowledgement number should be written behind the same.

  • Credit Card
  • Debit Card
  • Net Banking

In case of Credit Card/ Debit Card/ Net Banking, the person from whose card/account the payment should be made is described below:

Category of the Applicant Authorised Person making payment using a credit card or debit card or net banking
Individual or Branch of Individual business Self
Company or Branch or Division of a Company Director of the Company
Hindu Undivided Family (HUF) Karta
Firm or Branch of Firm Partner of the Firm
Body of Individuals or Association of Persons or Association of Persons (Trusts) or Artificial Judicial Person Authorised Signatory covered under Section 140 of the I-T Act, 1961

How H&R Block can help you?

H&R Block India is a world leader in filing tax returns in an effective and a hassle-free manner. Our dedicated tax experts provide year-round support to the clients so that you don’t have to worry about your tax returns. If you want to file your business tax returns, there’s no better place than H&R Block.

Business Tax Return Filing

Frequently Asked Questions

Is separate TAN required for TDS and TCS each?

No! Same TAN card can be used for both TDS and TCS purpose. And for other payment like interest payment.

 

How to find the address of nearest TIN-FC?

Addresses of all TIN-FC are available on NSDL-TIN website (https://www.tin-nsdl.com).

 

How to check the status of TAN application?

The status of application of TAN can be checked by visiting NSDL-TIN website or from income tax department website and clicking status track option and by quoting the unique 14-digit acknowledgement number after three days of the application.

 

Are Government employers also liable to obtain TAN?

Yes. The Government employers are also required to apply for TAN.

 

Can PAN be used in place for TAN?

PAN can never be used in the field where TAN is required to be quoted. However, a person required to deduct tax under section 194-IA can use PAN in place of TAN as such person is not required to obtain TAN.

 

Can an employer hold more than one TAN?

No. The employer cannot use more than one TAN. Different branches/ divisions of an entity may, however, have separate TAN.

 

How can the changes or corrections be made to the information?

You can make any change or correction in the information related with TAN by filing up “Form for changes or correction in TAN data for TAN allotted” along with necessary fees at any of the TIN-FCs or NSDL-TIN website.

 

What is a Duplicate TAN?

A duplicate TAN is an excess TAN that an employer or deductor carries. Having a duplicate TAN is illegal.

 

Not sure how to file your Business Tax Return? Let H&R Block help you file your taxes.

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