TAN (Tax Deduction and Collection Account Number) is a number which is required by a businessman while paying salaries to the employees. It is a 10-digit number required by individuals responsible to deduct and collect the tax. But, if a person is required to deduct tax under section 194-IA, he can use the PAN number instead of TAN.
TAN is issued by the Income Tax department of India to individuals who are responsible for deducting TDS (Tax Deducted at Source) or to individuals who collect TCS (Tax Collected at Source).
Out of its 10 digits, the first four characters are alphabets, the next 5 characters are digits, and the last character is an alphabet. The starting 3 alphabets are random, but the 4th alphabet is the first letter of the name of the TAN applicant (business owner).
The cost of a TAN application form is Rs. 55 with 18% GST i.e. Rs. 65. The payment can be made offline (at the TIN-FC), a cheque in favor of NSDL, demand draft in favor of NSDL, and by credit/debit card or net banking.
To apply offline you will have to first download the FORM 49B online. You will have to correctly fill the application and then submit it to TIN facilitation centers along with a copy of your identity and address proof.
But an online application for TAN is easier. Just follow these simple steps:
- Visit the NSDL site.
- Select online application for TAN.
- After this, select the category for which you are filling the TAN application form.
- Fill in all the details properly and click confirm.
- You will then receive an acknowledgment which is a 14-digit number. Information like name and status of the applicant, contact details, payment details, and signature.
- You will have to take the print of this acknowledgment and sign it.
- If the application is for an individual, the person will have to seal and stamp the acknowledgment.
- If a thumb impression is used, the acknowledgment must be attested by Magistrate/Notary Public/Gazetted Officer.
- Then the acknowledgment has to be sent along with a demand draft to the relevant address: NSDL, E-governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016.
The acknowledgment has to be sent within 15 days of the application. TAN number will then be allotted within 5 working days via email if the online payment method is used.
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