TAN Number Registration

TAN Number Registration

TAN or Tax Deduction and Collection Account Number is an alpha numeric number issued by the Income Tax Department to an Individual or artificial judicial person for deducting the Tax as per Chapter XVII B of the Income Tax Act. The assessee deducts the tax from the payment he is making for the services received on behalf of the Government and deposits the same as per the rules prescribed.

TAN Structure

• Alphabets are the first 4 TAN digits, binary are the next 5 digits, and the last digit is an alphabet. 
•  The First 3 TAN alphabets reflect the code of authority, the fourth alphabet is the initial of the TAN holder's name which can be a business, firm, person, etc. 
•  For example, if a TAN is allotted to a person named Vijay from Chennai, the TAN appears like CHE V 34567 N. 
•  Here, the CHE represents Chennai and V represents the name Vijay followed by 5 numerical digits and finally ending with one alphabet.

Benefits of TAN

• TAN has a unique number with lifetime validity. 
•  TAN is ultimately used for deductions such as salary, interest, and dividends. While depositing a tax, the challan type 281 should be used and the 10 digit TAN number should be mentioned correctly along with the name and address of the deductor. 
•  As TDS certificates are issued by a person or entity which holds TAN, the tax payee has an opportunity to know how much tax has been paid by him/her. 
•  Similarly, the tax payee can use this TDS certificate as proof of tax paid in any type of grievances. 
•  TAN must be quoted on all tax documents. 
•  Even if anyone forgets the TAN number after acquiring, it can be found out by approaching the webpage of NSDL on clicking the “Know your TAN” from the option. 
•  Once the TAN application is successfully submitted, the status of the application can be tracked using the acknowledgment number.

The TAN Registration Process

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The registration process of the TAN is very simple and it can be obtained through

• Offline mode 
•  Online mode

Offline Mode:

• An application for the allocation of TAN shall be filed in Form 49B (duplicate) and sent to any Tax Information Network Facilitation Center (TIN-FC). The TIN-FC addresses can be found at the NSDL-TIN website. 
•  In the case of an applicant, being a corporation that has not been incorporated under the Companies Act, 2013, the request for the allocation of the Tax Deduction Account Number can be made in Form No. INC-32 (SPICe).

Online Mode:

• TAN can be obtained by logging on to the Tax Information Network (TIN) website of the National Securities Depository Limited (NSDL) department. 
•  On the web page, click the “service” button. 
•  From the drop-down options, click “TAN” and then click “Apply online”, on the left-hand side toolbar. 
•  Now select a “New TAN” from the drop-down menu. 
•  After selecting “New TAN”, a new page will be generated called “ Form 49B” 
•  Fill in all the mandatory details required for Form 49 B. Ex: Name of the entity/individual, contact, etc. 
•  Once all the particulars of form 49B have been filled, click on the “submit” button and it will proceed to the payment page. 
• After selecting the payment option, you will get an acknowledgment screen displaying the details of’ The 14 digits' unique acknowledgment number 
•  Name of the individual/ entity. 
•  Status of the Application. 
•  The contact information like address, email, and phone number. 
•  Payment particulars. 
•  Space for the signature. 
•  The applicant has to pay the TAN registration fees (as applicable) i.e. Rs 65 + service tax. 
•  Here the payment can be made in both online/offline mode. If the payment is made through an online mode facility using a credit card, debit card, net banking, then the application will be instantly submitted successfully. 
•  On the contrary, if the payment is done through offline mode, the duly signed acknowledgment receipt along with the Demand Draft (DD)/challan in the name of NSDL-TIN should be sent to NSDL’s office address. 
•  Then download form 49B online from the NSDL website and fill in all the required details and attach the DD/ challan in the name of NSDL-TIN then physically send this to the NSDL office. 
•  The applicant's name and acknowledgment number should be indicated on the backside of the DD/Cheque 
•  An acknowledgment will be displayed upon successful payment via e-payment mode. 
•  The applicant shall save and print the acknowledgment and submit it to NSDL as indicated in "document submission."

Documents Required For TAN Registration

There are no specific documents required for obtaining the TAN but some important details should be furnished.

• Address proof - Aadhaar card or other. 
•  Applicant information - Name, address, contact, signature, etc. 
•  Certificate of incorporation for a company, LLP, etc. 
•  The agreement was made for a partnership firm, LLP, etc. 
•  After incorporating the above details, the acknowledgment slip is generated. 
•  Save and print the acknowledgment receipt for further reference. 
•  If the payment is to be done online, then a credit card/debit card/net banking mode can be availed. 
•  In case, If the mode of payment is done offline, then the Demand Draft (DD)/ challan is the name of NSDL-TIN should be sent to the NSDL office.