What is TAN?
TAN i.e Tax deduction and Collection Account Number is a unique identification number used by Indian taxpayers to file TDS (Tax deducted at source) and TCS (Tax collection source) returns. TAN is a 10-digit alphanumeric number that is assigned to organizations, bodies or individuals who have the authority to collect Income tax on behalf of the Income-tax department. A penalty of Rs 10,000 can be imposed if the person deducting tax at source doesn’t have a TAN.
What is Form 49b?
Form 49b must be submitted by individuals who want to apply for a new TAN. Form 49b for the allotment of TAN can be applied either by visiting the Income Tax department or by applying online through the Income Tax official website.
How to apply for TAN?
As mentioned above there are two ways to apply for TAN.
In this method, an individual has to visit the Income Tax department to collect form 49b and then complete the procedure.
In this method, an individual has to apply online for the TAN application and fill form 49b which can be easily downloaded from the NSDL portal. The online process of TAN application through the NSDL portal involves the following steps:
- Go to the official site of NSDL
- Click on ‘online application for TAN'(form 49b)
- Scroll down to find a drop-down box ‘Category of deductors’ and select the appropriate category.
- After selecting your category, you will be directed to a page displaying form 49b.
- Now, the applicant is required to fill in all the necessary details correctly.
- Once all the details have been filled in and checked submit the form by clicking ‘Confirm’.
- A page will be displayed confirming the submission and a 14 digit acknowledgement number will be displayed.
- Now, take a printout of this acknowledgement and fill in the signature in the space provided.
- Once all the details have been checked, attach all the essential documents and send them to the NSDL office through post or courier.
Details to be filled in form 49b
- Name of the office
- Address of the office
- Designation of tax payee
- Type of TAN
- Nationality of deductor
- PAN details
- Existing TAN number (if applicable)
- Date of submission
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Things to keep in mind while filling Form 49b for TAN application
- Form 49b for the TAN application should be filled only in English and should be in block letters so that it is clear and easy to read.
- While filling form 49b, blank sections are not permitted and every box should have one letter.
- Fields with the asterisk ‘*’ mark are compulsory and cannot be left empty.
- Designation of the tax payee should be filled.
- The address provided in form 49b for the TAN application should be an Indian address.
- If a left thumb impression is used to complete the submission process then it must be attested by a gazetted officer or magistrate.
- Do not overwrite on the form. If done so, the form will be rejected.
Fees and mode of payment:
For a new application, a fee of Rs65 + GST is required to be paid. This payment can be done through different payment modes which include credit card, debit card, cheque, net banking, demand draft.
Who must apply for TAN?
Any individual who is required to deduct or collect tax at source on behalf of the Income-tax department has to fill form 49b to apply and obtain TAN.
Why is TAN necessary?
According to section 203A of the Income-Tax Act, all individuals who deduct or collect tax at source are required to enter the TAN number in all TDS/TCS returns. Any individual who fails to enter TAN is liable to pay RS 10,000 as a penalty.
Can an individual have 2 TAN?
No. Having more than one TAN is called duplicate TAN and it is illegal for the same person to possess a duplicate TAN.
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