Every company who is responsible for Deducting Tax at Source is required to obtain a Tax Deduction and Collection Account Number (TAN).
TAN or Tax Deduction and Collection Account Number is a unique 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting the tax. Section 203A of the Income Tax Act, 1961, mandates quoting of TAN allotted by the Income Tax Department (ITD) on all TDS returns.
In case any person fails to apply for TAN number or quote the TAN or quotes incorrect TAN a penalty of Rs. 10,000 shall be levied.
Structure of the TAN
The correct structure of TAN is as mentioned below:
TAN structure is as follows: ABBBB89899C
- The first three characters represent the city or state where the TAN was issued.
- The fourth character of the TAN is the initial letter of the tax deductor. Which Means name of the Tax Deductor starts with this letter.
- Next five characters are system generated numeric Numbers.
- The last character is Alphabetic Number which is also known as check digit which is also system generated.
Procedure for Obtaining a Valid TAN number
Broadly there are two modes of acquiring a valid TAN -
- Offline Mode- An application for allotment of TAN shall be made in duplicate in Form No. 49B at any TIN Facilitation Centers (TIN-FC). However, in the case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No INC-7.
- Online mode- The application for TIN allotment can be made through online mode by filing form-49B on the official website NSDL. After filing the form the applicant is required to pay the fees of Rs 62 for filing the TAN application. The payment can be made by cash, cheque, demand draft or net banking. As soon as the successful payment is made, a 14 digit acknowledgment number will get generated. The applicant shall submit the duly signed acknowledgment along with the required documents to the NSDL within 15 days from the date of the online application. After the documents and application are verified by NSDL, the TAN number will be communicated to the applicant.
To apply TAN Number for a Company visit Registrationwala.com.