What are the process and benefits of the Tax Account Deduction Number (TAN)?
Introduction
The Tax Deduction and Collection Account Number, commonly referred to as TAN, is a crucial alphanumeric identifier issued by the Income Tax Department of India. Mandatory for entities to comply with Indian income tax laws, this blog explores the structure of TAN numbers, the filing application process, and the associated benefits.
What is TAN Application?
The TAN, a 10-digit alphanumeric number, is essential for withholding and depositing taxes at the source. Individuals, organizations, and businesses obtain this special identifier from the Income Tax Department of India when required to withhold or collect taxes at the source.
To apply for a TAN Number, one must submit a correctly filled Form 49B along with required documents and the application fee. Applications can be submitted online through NSDL or UTIITSL portals. The Income Tax Department issues the TAN upon processing and verifying the application, ensuring compliance with Indian income tax laws for all entities.
Structure of TAN Number
The TAN number follows a specific structure: ABBBB89899C
1. City or State Code: The first three characters represent the city or state where the TAN was issued, aiding in identifying the location of the TAN holder.
2. Initial Letter: The fourth character corresponds to the tax deductor’s initial letter.
3. Numeric Numbers: The next five characters are system-generated numeric numbers without specific significance.
4. Check Digit: The last character is an alphabetic number, acting as a verification digit for accuracy and integrity.
Process of Registering for TAN Application
A. Application Process
Fill out Form 49B online and submit it.
Rectify any errors before resubmission.
Confirm provided information or edit as needed.
B. Acknowledgement
Upon successful confirmation, receive a screen displaying a 14-digit acknowledgment number, applicant’s status, contact details, payment details, and a designated area for the applicant’s signature.
C. Payment
The processing fee is 65.00, including an application charge and 18.00% Goods & Services Tax. Payment methods include demand draft, cheque, credit card/debit card, or net banking.
D. Submission
1. Sign the acknowledgment form and send it to the designated address which is
Protean e-Governance Infrastructure Limited 5th floor,
Mantri Sterling Plot No. 341, Survey No. 997/8
Model Colony Near Deep Bungalow Chowk
Pune – 411016.
2. Write “APPLICATION FOR TAN – Acknowledgment Number” on the envelope.
3. Ensure the documents reach the TIN-Facilitation Centre within 15 days for processing.
Benefits of TAN Registration
1. Receive notifications from the Income Tax Department regarding TCS and TDS.
2. Authenticated login area for secure access to TCS and TDS information.
3. Download the latest Input File for correction statement preparation and check challan status online.
4. Receive a statement showing the status of TDS for monitoring and managing obligations.
5. Simplify reconciliation of TDS to a TAN holder according to Section 200A for proper reporting and compliance.
6. Easily upload e-TDS returns online for streamlined compliance and reporting.
7. Simple and easy registration and verification of TAN details.
Conclusion
Much like the importance of the Tax Deduction and Collection Account Number (TAN) for complying with Indian income tax laws, GST return filing process is a vital aspect for businesses operating in India. Obtaining a Tax Deduction and Collection Account Number (TAN) is a fundamental requirement for entities involved in tax deduction and collection in India. It ensures streamlined tax processes, compliance with tax laws, and minimizes legal risks, allowing entities to efficiently manage tax-related activities.
