16 Frequently Asked Questions on TAN Application

Tax Deduction and Collection Account Number (TAN) is a unique 10-digit alphanumeric code that is required by entities that are responsible for deducting or collecting tax at source. In this article, we will answer some frequently asked questions on the TAN application. We will cover topics such as how to apply for TAN number, TAN registration number, TAN application, and tax deduction and collection account number.

Frequently Asked Questions on TAN Application

1. What is a TAN?

TAN stands for Tax Deduction and Collection Account Number. It is a unique 10-digit alphanumeric code that is required by entities that are responsible for deducting or collecting tax at source.

2. Who needs to apply for a TAN?

Any entity or individual making tax deductions or collections at the source, including businesses, government agencies, and individuals, must apply for a TAN.

3. How to apply for a TAN number?

An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN Facilitation Centres (TIN-FC). Addresses of TIN-FCs can be obtained from NSDL-TIN website.

4. Can an individual apply for a TAN?

Yes, individuals responsible for deducting tax at the source, such as employers or freelancers, can apply for a TAN.

5. How to Know TAN Card Details Using the Applicant’s Name?

6. Can TAN be applied for online?

Yes, the Income Tax Department offers an online application facility for TAN. You can visit the official website and follow the guidelines to apply for a TAN online.

7. What documents are required for TAN application?

The following documents are required for TAN application:

8. What is the penalty for not applying for TAN?

Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-.

9. What is the significance of a TAN registration number?

A TAN registration number is a unique identifier allotted to an applicant upon successful TAN registration. It serves as a reference for all tax-related activities associated with the entity or individual.

10. Can the TAN registration number be used for multiple entities?

No, each entity or individual requires a separate TAN registration number. It is essential to obtain a distinct TAN for each branch or division involved in tax deduction or collection.

11. Can changes be made to a TAN application after submission?

Yes, you can make corrections or update information in your TAN application by filing the relevant request through the official website.

12. What is duplicate TAN?

A duplicate TAN is a TAN that has been inadvertently obtained by the same person who is responsible for deducting/collecting a tax and who already has a TAN allotted to him earlier. In other words, more than one TAN issued to a person is called a duplicate TAN. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.

13. Can a TAN be surrendered or canceled?

Yes, a TAN can be surrendered or canceled if it is no longer required. You can apply for TAN cancellation through the designated authorities.

14. Is it necessary to apply for different TAN if a deductor has to deduct tax from different types of payments?

No, it is not necessary to apply for different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend, commission, etc. The same TAN can be used for all types of payments.

15. Is it mandatory to quote TAN on specified documents?

Yes, it is mandatory to quote your TAN on all TDS/TCS returns, challans, and other documents related to tax deduction or collection.

16. Is it mandatory to quote TAN on specified documents?

Yes, it is mandatory to quote your TAN number on all TDS/TCS returns, challans, and other documents related to tax deduction or collection.

Conclusion

In conclusion, TAN application is a simple process that can be done online or offline. Entities that are responsible for deducting or collecting tax at source need to apply for TAN. The TAN number is valid for a lifetime and can be used for all types of payments. By following the guidelines and submitting the required documents, entities can easily obtain a TAN number.