Form 49B for TAN Application-Importance,Procedure,Required Documents

Apply form 49B for Tan application on NSDL site by following the prescribed procedure at certain nominal Fees, only by the liable person and Consequences if not comply with Tan provisions

TAN Application

What do you mean by TAN/ Meaning of TAN?

Tan is of 10 digits Unique number that distinguishes the Tax deductor from others and it is required to be mentioned in relevant prescribed documents.TAN is required to be acquired by the person who is responsible or liable to deduct TDS or TCS.

Format of TDS/TCS:

First, 4 digits of TAN are alphabets, the next 5 digits of TAN are numeric and the last digit is an alphabet. TAN number denote jurisdictional area code with initial name of Holder of Tan and some digits.

Persons liable to apply for TAN:

As previously discussed, It is compulsorily obtained by all persons who are liable to deduct TDS or collect TCS. However, in the following cases, only PAN number is not required instead of the TAN number that is:-

  1. Section 194IA:- Purchase of Immovable property by Buyer 
  2. section 194-IB:-  ON the Rent paid by Individual or Huf(Non-Audited person)

Importance of TAN:-

As per section 203A of the Income-tax Act, 1961, All such person who are liable to deduct or collects tax at source has to apply for the allotment of TAN. So, Section 203A also makes it mandatory to quote TAN in the following documents:

  1. TDS statements i.e. return
  2. TCS statements i.e. return
  3. SFT that is Statement of financial transactions or known as Reportable Accounts
  4. Prescribed Challans required  for payment of TDS/TCS
  5. TDS/TCS certificates
  6. Other documents as may be prescribed

Procedure to obtain TAN:

There are two modes for applying for TAN:

  1. Online mode and
  2. Offline mode. They are as follows:
  • OFFLINEAn application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN-FC. Addresses of TIN-FCs are available at NSDL-TIN website (https://www.tin-nsdl.com).
  • ONLINEOnline application for TAN can be made from the website of NSDL-TIN website

Note:-  Form No. INC-32 requires for the companies  that are not registered under the new /old company Act

Places from where to obtain Form 49B:

  1. Form 49B is easily downloaded from the site of Income-tax Department (http://www.incometaxindia.gov.in)
  2.  It is also available at TIN-FCs.
  3. Photocopies that are Legible of Form 49B or forms legibly printed exactly as per the format prescribed by Income-tax Department are also allowed to be used.

Important Documents to be submitted/ annexed  with TAN Application

For Offline Application:-

No documents are required to be submitted in Offline mode by any persons who are liable to be deducted/collected.

 For Online Application:

 For offline application, the acknowledgment that must be signed by the applicant only after the form is to be forwarded to NSDL by the relevant persons who are liable to be deducted/collected.

On online application being uploaded, a generation of acknowledgment will be available on the system. The acknowledgment will be as :

(Unique 14-digit acknowledgment number) , this must be signed by Applicant for TAN)

Tips for filing Form 49B

  • You must provide details of the Assessing Officer in Form 49B.
  • If Any blank section is seen in Form 49B then it will be regarded as incomplete.
  • It is mandatory for you to mention your designation in the form.
  • The address provided of the applicant must be in the form must belong to India, not of another country.

No Separate TAN is required to obtain for TCS collector:

TAN allotted for TDS, can be used for the purpose of TCS also. And there is no need to obtain a separate TAN number for TCS as it works for both COLLECTION or DEDUCTION.

How to find the address of nearest TIN-FC?

Addresses of all TIN-FC are available on NSDL-TIN website (https://www.tin-nsdl.com).

Single TAN is to be used in case of Deductor who has to deduct tax from different types of payment prescribed under section like sec 192, 194A namely,(salary, interest payment, etc…..)

Fee and payment modes:

A nominal fee of Rs.65 is compulsorily required to be paid when you are applying for a new TAN. It includes application charge of Rs.55 including 18% Goods and Services Tax. You can make the payment by any of the following modes:

  1. Cheque
  2.  Demand draft
  3. Credit card
  4. Debit card
  5. Net banking

Precautions should be there while making payment via cheque or demand draft (DD) for the payment,  in favor of or the payee will be the  NSDL-TIN. The DD must be payable in Mumbai. In the case of a cheque, deposit a local cheque at any HDFC Bank branch except Dahej branch.

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