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You must have come across the term ‘TAN’ i.e. Tax Deduction and Collection Account Number. However, not everyone needs to have a TAN in order to pay taxes. There are specific cases when you must have a TAN such as for depositing tax deducted at source when making payment of rent, professional fee, and salary to name a few. Read through to know more about how to apply for TAN and when Form 49B will come handy.

  1. Why is TAN necessary?
  2. What is Form 49B?
  3. How to apply online for TAN?
  4. Tips for filing Form 49B
  5. Fee and payment modes
  6. Fee and payment modes

1. Why is TAN necessary?

Every person who is required to deduct tax at source (TDS) is required to have TAN. Similar to PAN, TAN is a 10-digit alphanumeric number assigned to a tax deductor and collector. The income tax department will issue this number to the person making an application for it. Every TDS payment or TCS payment should be made using the TAN. Also, every TDS return must have TAN quoted on it. A penalty of up to Rs.10,000 can be levied if a person deducting tax at source does not have a TAN. Also, a penalty of Rs.10,000 is levied for a failure to quote TAN in TDS challans and TDS certificates.

2. What is Form 49B?

Individuals must use Form 49B to apply for a new TAN. The form can be accessed at the nearest Taxpayer Identification Number (TIN) facilitation centre set up to receive e-TDS returns.

3. How to apply online for TAN?

Step 1: Visit the URL – https://tin.tin.nsdl.com/tan/

NSDL- Application for TAN
Step 2: Click on the option ‘Online Application for TAN (Form 49B)’.

Click on 49B
Step 3: Scroll down to the end of the screen to find a drop-down list under ‘Category of Deductors’.

Apply for new TAN
Step 4: You will be redirected to a page displaying Form 49B as given in the image below. Fill in all the necessary details, check the entered details, and submit the form by clicking on ‘Confirm’ button.

Fill 49B form
Step 5: A screen will be displayed confirming the submission of the form to the income tax department. Make a note of the 14-digit acknowledgement number displayed.

Step 6: Print the acknowledgement form and sign on the printed copy in the space provided.

Step 7: Send the acknowledgement slip to NSDL along with the supporting documents.

4. Tips for filing Form 49B

  • You must provide details of the Assessing Officer in Form 49B.

  • Details such as income tax circle, area code, and district must be filled in the form. Read the page to know the procedure to figure out this information.

  • If you use left thumb impression instead of a signature to authorise the form, get it attested by a gazetted officer/notary/magistrate.

  • You can authorise the acknowledgement with thumb impression only if you are an individual applicant. If you have applied under other deductor categories, the acknowledgement slip must be mandatorily signed.

  • Any blank section in Form 49B will be considered as incomplete.

  • It is mandatory for you to mention your designation in the form.

  • The address provided in the form must belong to India.

  • 5. Fee and payment modes

    A fee of Rs.65 must be paid when you are applying for a new TAN. It includes application charge of Rs.55 and 18% Goods and Services Tax. You can make the payment in one of the following modes:

    a. Cheque
    b. Demand draft
    c. Credit card
    d. Debit card
    e. Netbanking

    If you choose cheque or demand draft (DD) for the payment, it should be in favour of 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.

    Persons authorised to make the payment of the fee are:

     

    Category of applicant

    Authorised person

    Individual – Proprietor

    Individual

    HUF (Hindu Undivided Family)

    Karta of the HUF

    Company

    Any Director of the company

    Firm/LLP

    Partner or Designated partner of LLP

    Trusts/Association of Persons (AOP)/Body of Individuals (BOI)

    Authorised person/signatory

     

    6. Submission of TAN application

    The acknowledgement of the TAN application must be sent to the address given below:

    NSDL e-Governance Infrastructure Limited
    5th Floor, Mantri Sterling,
    Plot No.341, Survey No.997/8,
    Model Colony,
    Near Deep Bungalow Chowk,
    Pune – 411016

    After receipt of the acknowledgement and payment of application fee, the TAN application would be processed and TAN would be allotted to the applicant.

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