For anyone who deducts or collects tax at the source, a TAN is crucial. Therefore, it is crucial to quote a TAN card for each TDS/TCS return. If the user does not apply for it or does not adhere to any of the rules mentioned in Section 203A of the Income Tax Act, they must pay a penalty of INR 10,000.
We will cover what is a TAN card in this blog, including how to apply for one.
What is a TAN Card?
According to Section 203A of the Indian Income Tax Act of 1961, persons obligated to deduct and collect tax get a 10-digit alphanumeric account number called the Tax Deduction and Collection Account Number (TAN). Therefore, a TAN card is an essential document for a TDS return.
Importance of a TAN Card
For TDS and Tax Collected at Source, it is mandatory to quote a TAN card as proof of identity (TCS). Therefore, TIN facilitation centers cannot accept TDS and TCS without a TAN card.
Please be aware that banks will not accept TCS/TDS challans without a TAN card. Moreover, a person will incur an INR 10,000 fine if they do not apply for a TAN card or forget to include it in any essential paperwork.
Why is it Required to Apply for a TAN Card?
Under Section 203A of the Income Tax Act, everyone who deducts or collects tax at the source must apply for a TAN card. A TAN card must accompany all TCS/TDS returns, TDS/TCS certificates, and TDS/TCS challans according to Section 203A. According to the section, anyone who violates the section’s rules or does not apply for a TAN card is subject to an INR 10,000 fine.
Who can Apply for a TAN Card?
The following applicants must have a TAN card:
- People who collect or deduct tax at the source
- Association of Persons
- Company
- Undivided Hindu Family
- Firm
- Governing bodies at all levels: central government, state government, local authorities, autonomous bodies, and statutory bodies
Structure of a TAN Card
The components of a TAN card’s structure are as follows:
- Each TAN card has a unique 10-digit alphanumeric number. The number has four letters in the first four characters, five numerals in the following five, and one more letter in the final character. UTTY75759P is an example.
- The first three characters indicate the state or city that issued the TAN.
- The fourth character represents the deductor’s first initial.
- The following five characters are numbers.
- The last character is a letter.
How to Apply for a TAN Card?
You can apply for a TAN card in two ways – online and offline. In the blog’s next part, you can follow along as we walk you through how to apply for a TAN card.
How to Apply for a TAN Card Online?
Following these instructions, individuals, firms, or associations can apply for a TAN card online.
- Visit the NSDL- TIN official website.
- Select “TAN” from the list of services.
- Select “New TAN” after clicking on “Apply Online”.
- Read the instructions and complete Form 49B.
- Click on “Submit.”
After submission, a screen will show the following information:
- An acknowledgment number with 14 digits
- Name of the applicant
- Applicant’s status
- Contact information
- Payment information
- Space for signature
Obtain a printout of the acknowledgment slip and send it, along with the necessary supporting documentation, to the NSDL at the address provided below.
NSDL e-Governance Infrastructure Limited,
5th Floor, Mantri Sterling
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune- 411016
Note:
- When mailing the TAN acknowledgement slip, write “APPLICATION FOR TAN- Acknowledgement Number” on the outside of the envelope; for example, “APPLICATION TAN- 12345678910112.”
- Within 15 days from the date of the online application, you should send the acknowledgment slip and demand draft to the NSDL.
- They will process the application after receiving an adequately signed acknowledgment and payment realization.
How to Apply for a TAN Card Offline?
To apply for a TAN card, a candidate must go to the National Securities Depository Limited’s official TIN facilitation center and speak with the appropriate official.
How to Check the TAN Card Status?
Following the guidelines provided, a candidate can check the status of the TAN Card after applying.
- Visit the NSDL-TIN official website.
- Choose TAN under ‘Services’.
- Click on ‘Know Status of Your Application’.
- Enter the ‘14-digit acknowledgment number” after choosing the “Application Type’.
- Select ‘Submit’.
- The screen will display the TAN card status.
An applicant can also check the status of their TAN card through SMS in the following way:
“NSDLTAN <space> Acknowledgement No and send it to 57575.”
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