Tax Deduction and Collection Account Number, TAN is an important and mandatory number for any individual, business or enterprise who is filing for their Tax Deduction at Source, TDS or Tax Deduction at Source Return. Without the Tax Deduction and Collection Number, TAN, the individual or business will not be able to file for their TDS taxes. The form number that follows the TAN Application in Form 49B and hence knowing the details of Tax Deduction and Collection Account Number, Form 49B is of utmost importance to ensure the smooth sailing of filing of taxes and returns.
One can avail the form 49B of Tax Deduction and Collection Account Number, TAN anywhere from a TIN facility centre which is set up for receiving e-TDS returns. One can easily apply for a new TAN Application online by visiting the website and entering all the details that are necessary for obtaining the Tax Deduction and Collection Account Number.
What is TAN and is it important in the tax filing process?
Tax Deduction and Collection Account Number is a specific number given to an individual or business who need to file for their Tax Deducted at Source, TDS. Without obtaining the TAN, one cannot go ahead with the process. So yes, having a TAN is of the utmost importance in the tax filing process. Without the TAN one cannot go ahead with the procedure. Procuring a TAN is very easy and can be done online on the TIN facility website. Every payment under the pretext of TDS and TCS that need to be made needs a TAN.
Please note, not everyone needs a TAN in their tax filing process. They are only needed in specific cases and if you fall under those categories then you need a Tax Deduction and Collection Account Number.
In what situations is the TAN required?
As mentioned above, a TAN is not mandatory for everyone and is required only in specific situations. In case you fall into those situations then you need a TAN and it is mandatory for you. Some of the situations in which Tax Deductions and Collection Account Number, TAN, form 49B are required are:
- Tax Deduction at Source, TDS situations such as:
- Payment of Rent
- Payment of salary to the employee
- Professional fees paid to freelancers or in general
- Tax Deduction at Source return
- Tax Collection at Source
An employee who receives his salary post a TDS cut is not required to have a TAN but the employer needs to have a TAN.
Similarly, when buying a house, a 1% TDS needs to be cut from the property value if the property is more than INR 50 lakhs. In such a situation the individual does not need a TAN and can instead mention their PAN while deducting and filing for returns.
What is the difference between PAN and TAN?
Permanent Account Number, PAN is an account number that is mandatory for all individuals in the nation of the country when they are filing for their taxes. If an individuals income is greater than INR 2.5 lakhs they are required to pay their taxes and hence need their PAN card. Without a PAN card, it is impossible for anyone to file for their returns. A PAN is a 10 digit alpha numeric number that is different for each individual. PAN Card is mandatory in today’s documentation procedure.
Similar to Permanent Account Number, PAN, a Tax Deduction and Collection Account Number form 49B is a 10 digit alpha numeric number that is given to an individual, business or enterprise. However, the biggest difference between a PAN and TAN is that while a PAN is mandatory, a TAN is an option and depends on the situation. In the case of TDS, TDS Return and TCS a TAN is mandatory. But it is not necessary for all individuals or businesses to have a TAN. This is the biggest difference between PAN and TAN and how it separates them.
What are the documents required for form 49B Tax Deduction and Collection Account Number?
Tax Deduction and Collection Account Number, TAN form 49B do not require any documents for the process of getting a TAN card. However, if an individual or a business decides to get a TAN form 49B via an online process, then the acknowledgement generated on submission of the form needs to be downloaded, signed, forwarded to NSDL by post.
Once an individual or business has submitted the application for TAN form 49B, they can track their application process using the 14 digit acknowledgement number received during the application process.
How to apply for TAN form 49B, Tax Deduction and Collection Account Number?
- The first step of the procedure is to visit the official website – https://www.tin-nsdl.com/
- Under the ‘Services’ dropdown option, the individual or business needs to click on the TAN
- Once the new page open, they need to click on ‘Apply Online’ and ‘New Applicant’ in case they’re a new user
- A new window will open up with ‘category of deductions’ and the next step is to click on ‘Select’ and then ‘Form 49B’
- The user then needs to fill in all the information that is asked on the page. This ranges from Name, Central Authority, Company, Individual or Hindu United Family, HUF, Address, Telephone number, PAN details and so on.
- Once the details are filled in, click on Submit and a 14 digit acknowledgement number will be given to track the status of the application and so on.
- In case of an online application, the acknowledgement form needs to be printed and posted to NSDL – NSDL e-Governance Infrastructure Limited 5th floor, Mantri Sterling Plot No.341, Survey No.997/98, Model Colony Near Deep Bungalow Chowk Pune – 411016
This is the procedure for an applicant to avail the Tax Deduction and Collection Account Number, TAN form 49B. The same process can be done offline and for that, the applicant needs to physically go to a TIN facility that is in their local area of residency.
FAQs about TAN application Form 49B
- What is the full form of TAN and why is it needed?
The full form of TAN is Tax Deduction and Collection Account Number, TAN Form 49B and it is needed for any individual or business entity that has transactions with Tax Deducted at Source, TDS or Tax Deducted at Source Returns. It is not compulsory for every individual to have a TAN.
- What is the payment for availing of a TAN and what are the modes of payment via which one can pay?
There is a fee of INR 65 (INR 55 + 18% GST) that one needs to pay for when availing of a TAN Form 49B. The payment can be made Demand Draft, Cheque, Net Banking and Debit or Credit Cards.
- What is the penalty for not applying and having a TAN application?
In case an individual is subject to TDS or TDS return they need to have a TAN. If an individual or business does not have a Tax Deduction and Collection Account Number they can be subject to a penalty and fine of INR 10,000.
- Can one file for a TAN application online as well as offline?
Yes. TAN Application Form 49B can be applied online as well as offline. In case one decides to go via the online route then the acknowledgement form needs to be posted to NSDL. In case one decides to choose the offline route, they need to go to a TIN facility in their local area of residency and ensure the form is filled and submitted.
- What are the documents required for applying for a TAN application Form 49B?
No documents are required when applying for a Tax Deduction and Collection Account Number.