TAN is a 10 digit number that is assigned to the authorities to deduct and collect income tax in India on behalf of the Income Tax Department. This is a unique number like the PAN. Both these tax numbers have different uses and cannot be used both at a single place or time. This means, where TAN is quoted, PAN cannot be considered as both have entirely different purposes. TAN is needed for filing the TDS and TCS return in both electronic and paper modes.
TAN is an authorization by the Income Tax Department to collect the income taxes on their behalf. This number must be quoted on the TDS form that an individual fill and communicate for tax purpose with the Income Tax Department. If you do not have this number, you can be charged a fine of Rs 10,000 even if you are deducted for the TDS. Along with this, banks can also deny any tax-related transaction if TAN is not provided. With so many uses and importance, it is mandatory for the private and public sector enterprises to have a TAN in order to deduct tax.
Steps to file for the TAN:
In order to file for the TAN, you need to submit the tan application form. For this, you should know about the different forms needed for different purposes. It is necessary to fill and submit form 49B at any TIN facilitation centres that is meant for receiving the e-TDS return. Income Tax Department allow the TIN to these entities. An individual can apply for this number either by filing an online application at the Income Tax official website or by submitting the form by visiting the Income Tax department office. One can successfully only after filling the 49B form.
When the application is filed online, several support documents like acknowledgement received after the successful submission of the 49B form to be sent to the Income Tax Department as a proof. However, in the case of the application, it is submitted physically to this department and does not require any supporting documents.
Documents and fees needed for TAN application:
When you file for the TAN, you need to pay the required fees along with the form. For the successful application of TAN, you need to fill the 49B form along with the fees of Rs. 50 in addition to the service charges. This fee is non-refundable even when the application is filed in error. Even if you have made some error in the application, you can change them by submitting the correction form. This form can be downloaded from the Income Tax Department website. For successful filling the TAN form you can find the guidelines over the official website.
Hence, once the form 49B is filled and submitted, it is necessary its look is correct and verified. This form is long and consists of various types of information to be filled. Hence, know all about the importance of TAN and the best way is to fill it successfully.