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A comprehensive list of frequently asked questions on TAN Registration.
Tax Deduction and Collection Account Number (TAN) is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source. It is mandatory to quote TAN in TDS/TCS, any TDS/TCS payment Challan, TDS/TCS certificates, Annual Information Return and other documents related to tax deduction or collection.?
Every person liable to deduct tax at source or collect tax at source is required to obtain a TAN. Except a person required to deduct tax u/s 194IA can use a PAN in place of a TAN, as such person is not required to obtain TAN.
Section 194IA provides for deduction of tax at source from payment on transfer of certain immovable property other than agricultural land.
Note: Failure to apply for TAN or not quoting the TAN in the specified documents attracts a penalty of Rs.10, 000
TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres (TIN-FC) managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.
In case a TAN has already been allotted for the purpose of Tax Deduction at Source (TDS), then no separate application needs to be made for obtaining separate TAN for the purpose of Tax Collection at Source (TCS). The same number can be quoted in all returns, Challan and certificates for TCS. However, if no TAN has been allotted, a duly filled in Form 49B, along with the application fees is to be submitted at any TIN-FC.?
Yes. In such a case, the name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN.
Duplicate TAN is a TAN which has been inadvertently obtained by a same person who is responsible for deducting/collecting tax and who already has a TAN allotted to him earlier. In other words, more than one TAN issued to a person is called duplicate TAN. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may have separate TAN.
At any case not required of duplicate TAN, then the TAN which has been used regularly should be used. The other TAN(s) should be surrendered for cancellation by using "Form for Changes or Correction in TAN".
Yes changes are possible,
If there is any change in the data provided at the time of allotment of TAN, then such change is to be communicated to the Income Tax Department by intimating the change in , the "Form for Change or Correction in TAN data". Duly filed form should be submitted to the TIN Facilitation Centres or an online application can be made in online.
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.