02 August 2009

Applying for Income-tax TAN, Tax Deduction and Collection Account Number

All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department; by way of withholding tax or otherwise, must apply for and obtain TAN. TAN is Tax Deduction and Collection Account Number. TAN is required to be quoted on TDS/TCS payment challans, TDS/TCS returns and TDS/TCS certificates to be issued. Without TAN it will not be possible to deposit any amount in bank towards the amount deducted or collected by the applicant. Similarly it is not possible to file TDS/TCS return without TAN. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-.
Application for TAN has to be made in Form 49B. It has to be filled and deposited at any NSDL centre. Application must be accompanied with fees of Rs.85/- + service tax, total amounts to Rs.96/-. The TAN application form is to be filled in Black Ink. It must also be signed in Black Ink. 10 digit alpha numeric number is allotted in a fortnight from date of application. It is intimated by post at the address of the applicant mentioned in the application. Application for TAN can be made online, but the acknowledgement generated online has to be deposited with NSDL TIN centre. Each branch of the company or bank can apply for separate TAN. The name and location of branch and the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN.

Form 49B