What is TAN Card: Eligibility, How to Apply & Documents Required
Did you know that section 203A of the Income Tax Act, 1961 mandates quoting TAN on all TDS returns? The Indian government authorises a TAN card or TAN, which stands for Tax Deduction and Collection Account Number.
Given its significance, it is critical to understand its variables. So, keep reading to learn how to apply for TAN card online and the other related parameters.
What Is a TAN Card?
A Tan card displays a ten-digit alphanumeric code that all individuals responsible for tax collection or deduction must obtain. The Income Tax department allots this unique number to taxpayers.
Moreover, you should know that lending institutions aren’t allowed to accept TCS or TDS challans if the TAN is not quoted. Lack of TAN number in official documents may lead an individual to a penalty of ₹10,000.
Therefore, persons liable to deduct tax at source or collect tax at source must obtain a TAN card. That said, individuals required to deduct tax under sections 194-IA, 194-IB, or 194M do not need to obtain TAN.
However, before filling a TAN card application form, you should know about its types.
What Are the Types of TAN Application?
There are two types of TAN applications:
- Request for Correction in TAN Data: It allows you to make changes or corrections in TAN data.
- Application for Allotment of TAN: Individuals without a TAN card can submit Form 49B for issuance of the same. You can make the application at the TIN facilitation centres established by NSDL or make an online application.
Now let’s check the steps for the TAN card online application.
How to Apply for a TAN Card?
You can make an online application for this card by following these steps:
- Visit the official TIN website.
- Select ‘TAN’ option from the services tab on the homepage.
- Click on ‘apply online’ option and select ‘new TAN’.
- On the redirected page, choose the respective category of deductor.
- Now, the website redirects you to fill Form 49B.
- Fill in the form and click on the ‘Submit’ option.
- The screen will display a 14-digit acknowledgement number and other details.
- Save this page and take a printout of it.
Furthermore, this printout and required documents should be sent to the following address: NSDL e-Governance Infrastructure Limited 5th floor, Mantri Sterling Plot No.341, Survey No.997/98, Model Colony Near Deep Bungalow Chowk Pune – 411016.
Alternatively, if you are uncomfortable with submitting a TAN application online, you can easily opt for an offline method. The process for it remains the same. However, you need to visit a TIN facilitation centre located in your vicinity. You can also obtain Form 49B from any TIN facilitation centres and submit the filled form.
What Are the Documents Required for TAN Card?
Apart from learning how to apply for a TAN card online, one should take note of the required documents. An applicant needs to submit two vital documents:
- A Duly Signed Acknowledgement Page
- Demand Draft Within 15 Days of Application
In addition, individuals must superscribe the envelope with the terms ‘application for TAN’ and mention the acknowledgement number.
How Much Does a TAN Card Cost?
The charge for processing a TAN application is ₹65. This fee includes ₹55 as application charges and 18% as Goods and Services Tax (GST).
Moreover, applicants will be charged an additional 2% when completing this transaction with a credit card or debit card. In addition, individuals making payments through net banking will be charged an additional ₹4 on top of Goods and Services Tax (GST).
An acknowledgement slip indicates a successful payment.
How Long Does It Take to Get a TAN Number?
You will get this card within 7 to 15 days. However, this can vary based on one’s postal address. So, it is beneficial to keep a tab on the TAN card status for updates. You need the 14-digit acknowledgement number to check the status.
- Visit the TIN NSDL website.
- From the ‘Services’ menu, select ‘TAN’.
- Click on ‘Know Status’ of your application option.
- Select an application type and enter acknowledgement number.
- Finally, enter a captcha code.
- Click on submit option to know the status of your TAN.
By following these steps, you can check the TAN card status by name and date of birth. You can also send an SMS to number 57575 and type NSDL TAN to know TAN status.
FAQs about TAN Number
Do I need to apply for a new TAN card if I relocate to a different city?
Yes, you need to surrender the existing TAN card and apply for a fresh one when relocating to a new city.
Can I quote my PAN in place of TAN when filing TDS?
No, you cannot quote PAN in place of TAN when filing TDS. This is because they both serve different purposes.