Updated : April 06, 2024Tax Deduction Number Registration In India
Tan Number is a ten-digit alphanumeric number which is allotted to by NSDL to tax deductors. This is unique number allotted for the purpose of TDS related accounting by the income tax department in India. This alpha numeric number is required to be obtained by all the individuals who are liable to deduct or collect the tax. Moreover, it is also obligatory to quote TAN in all TDS/TCS certificates, returns and payment challans.
It is to be noted that each tax deductor is separately recognised by a TAN and the first three characters of TAN Number represent the state or city where the TAN has been issued.
Online Acknowledgement of TAN Application Consists of
- Applicant’s Status
- Applicant’s Name
- Details of Payment
- Space for Signature
- A distinct 14 digit acknowledgement number
- Applicant’s Contact Details including e-mail, address and telephone number
TAN number is simply the tax accounting number, also known as tax deduction number. In order to apply for TAN Registration in India , TAN Application in form no 49B is to be made by the tax deductor and needs to be signed by the proprietor in case of proprietorship firm, by any partner of a firm or any designated partner in case of LLP, by any director in case of a company.
The TAN number can be applied only after permanent account number (PAN) is allotted to the applicant. Hence before an application for allotment of tan number is made the assesses must get his pan card made. There is no card which department issues but sends a letter quoting ten-digit tan number to the assesses.
Section 203A of the Income-tax Act 1961 makes it mandatory for all assesses who is liable to deduct TDS to acquire the TAN number and use the same on all communication related to tax deduction number. Any non-compliance of section 2013A invites a penalty of Rs. 10,000/-
Income Tax law cast an obligation on the Company/LLP making specified payments to other persons to deduct Tax at prescribed rates known as TDS. The deducted Tax need to be deposited Income Tax Department and subsequently, a TDS return has to be filed. To comply with the above provisions of law the Income Tax department allots a unique tax account number also known as TAN. In all challans of TDS and its return the same need to be quoted by the company or LLP. To apply for a TAN an application needs to be made in Form No. 49B. As explained above in case the company is incorporated using an e-Spice form then there is no need to apply for TAN as the same is allocated during the incorporation process itself.
