A Tax Deduction and Collection Account Number (TAN) is a 10 digit Alpha-numeric number issued to persons who are required to deduct or collect tax on payments made by them. The application of TAN and its use is governed by the Income Tax Act 1961.
TAN number is issued by the Income Tax department on an application made to it in this behalf.
It is obligatory to mention TAN in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be accepted if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks.
Application for TAN.
Government Fee and Taxes.
Fresh Application fee if application is rejected.
1 Day time for gathering the necessary documents.
1 Day time to file the application.
7 Working days for processing the application by government.
Copy of PAN
TAN or Tax Deduction or Collection Account Number is a 10 digit Alpha Numeric Number required to be obtained by all persons who are responsible for deducting or collecting tax.
The provisions of Section 203A of the Income Tax Act 1961, requires all persons who deduct tax or collect tax at source to apply for the allotment of TAN. The Section also makes it mandatory to quote TAN in all TDS/TCS/Annual Information Returns, payment challans and certificates to be issued.
All those persons who are required to deduct/collect tax at source on behalf of the income tax department are required to apply and obtain TAN.
You can apply for TAN Online at NSDL-TIN website. You can then fill and submit the form online. Once you click on the submit button, an acknowledgement containing a unique 14 digit number is generated on the screen. You should print that acknowledgement number, sign it and dispatch it to NSDL at the address mentioned in the website.
Section 272BB (1) provides for penalty for failure to obtain TAN and section 272BB (1A) provides for penalty for quoting incorrect TAN. Penalty imposable under section 272BB is Rs. 10,000.
No, TDS/TCS returns are mandatory to be filed only when there are transactions on which Tax is deducted or collected, otherwise there is no such requirement to file periodic returns.