TAN is a 10 digit alphanumeric number required to obtain by those persons who are responsible for deducting & collecting taxes on the behalf of government. For ex – DNBD66666T, first three letters indicate the name of the city or a state and fourth letter signifies the first letter of your name.
The individual who is in charge of deduction & collection of taxes needs to store the tax deducted to the credit of central government by mentioning the TAN number. Individuals running a proprietorship business needs to obtain TAN & deducts tax at source, whenever it is required. There is no need for salaried peoples to obtain TAN.
Features Of TAN Registration
It is a 10 character alpha-numeric code issued by the income tax department for deduction or collection
of taxes at source.
It is issued for lifetime Individuals’ running a Proprietorship business needs to obtain TAN. It is not applicable in the case of salaried peoples.
In relation to TDS payments, TAN must be
quoted at the time of depositing TDS in the bank.
How To Apply For TAN?
Start with filling the form 49B online
If there is any error in your application, you need to rectify it and submit the form again.
The information entered by you in the form will be displayed on screen as a confirmation.
The applicant can edit or confirm the information.
The fee of Rs.65 (Rs.55 application charge + 18% GST) will be charged to process the TAN application. It is a nonrefundable fee in case your application got rejected. If your application is accepted, TAN details will be sent to your address or to your e-mail (If you have applied online) by NSDL. If you want to pay by cheque or demand draft, it should be drawn in the favor of NSDL-TIN