The TAN holds utmost significance for each taxpayer within India. It comprises a 10-digit alphanumeric code designated to individuals entrusted with the duty of gathering or withholding taxes at the source, whether in an individual capacity or as an entity. Within the Indian context, applying for a PAN/TAN application and possessing a TAN number is mandatory for both individuals and businesses, enabling seamless day-to-day operations.
This unique identifier becomes imperative during processes such as the submission of payment challans, certificates, Annual Information Returns, TDS, and TCS. The efficacy of your filed return is based upon the inclusion of your TAN number. Additionally, financial institutions will decline TDS and TCS challans devoid of this essential TAN component. In this article, we will guide you through the procedure of getting a TAN number for a company.
Understanding TAN Number for Company
The acronym TAN represents Tax Deduction and Collection Account Number. This distinctive code is composed of ten characters, blending both alphabetic and numeric elements, and is bestowed by the Income Tax department. Individuals engaged in tax collection or deduction at source, encompassing both Tax Collection at Source and Tax Deducted at Source, qualify for a TAN. The TAN number configuration involves four alphabetic characters, followed by five numerical digits, and concluded with a final alphabet. The initial quartet of letters holds significance as the jurisdictional code, while the fourth letter signifies the name of the deductee.
Before delving into the procedure of getting a TAN number for a company, one must know the provisions on TAN under the IT Act. Section 203A of the Income Tax Act of 1961 mandates the inclusion of your TAN number in all TDS returns. Under the purview of Indian legislation, the TAN assumes a pivotal role within tax compliance mechanisms. Its application extends to diverse deductions such as salary, dividends, and interests, necessitating its mention in TCS and TDS returns, challans, payments, and certificates. Non-compliance attracts a substantial penalty of Rs. 10,000, as stipulated by the regulations.
How to Know Your TAN Details
For companies acquainted with the procedure of getting a TAN number for a company, here is a guide to help you know how to know your TAN details, if already registered with the authorities:
Step 1: Access the Official Income Tax e-Filing Website
Log in to the official Income Tax e-Filing website using your credentials.
Step 2: Locate the ‘Know Your TAN’ Section
Navigate to the ‘Know Your TAN’ tab on the website’s interface and click on it.
Step 3: Select Search Option
Under the ‘TAN Search’ section, you will see options to search by ‘TAN’ or ‘Name’. Choose the relevant option based on the information you have.
Step 4: Choose ‘TAN’ or ‘Name’
Select either the ‘TAN’ or ‘Name’ option, depending on the information you are providing for the search.
Step 5: Specify Deductor Category
Scroll down and identify the appropriate ‘Category of Deductor’ that applies to your situation.
Step 6: Select Your State
Choose the state that corresponds to your tax jurisdiction from the provided options.
Step 7: Enter TAN or Name
Enter the ‘TAN’ or ‘Name’ based on your earlier selection in the ‘TAN Search’ section.
Step 8: Provide Registered Mobile Number and complete verification process
Input your registered mobile number into the designated field and complete the verification process.
Step 9: Verify Using OTP
Enter the OTP received on your registered mobile number and select the ‘Validate’ option. Upon successful verification, your TAN-related details will be displayed on the screen.
By following these steps, you can easily retrieve your Tax Deduction and Collection Account Number details using the official Income Tax e-Filing website.
Online Procedure of Getting a TAN Number for Company
Businesses seeking a Tax Deduction and Collection Account Number have the flexibility to apply through online or offline channels.
The procedure of getting a TAN number for a company via the online process is as follows:
Step 1: Access NSDL TAN Official Website
Begin by visiting the official website of NSDL TAN to initiate the procedure of getting a TAN number for a company via the online process.
Step 2: Navigate to TAN Application Section
Click on the ‘Online Application for TAN (Form 49B)‘ option.
Step 3: Choose ‘Apply for New TAN’
Select the ‘Apply for new TAN’ option and identify the appropriate category of deductors that pertains to your business.
Step 4: Complete the TAN Application Form
The TAN application form will appear. Complete the form with accurate details, ensuring that you fill in all mandatory fields indicated with asterisks. In cases of error, rectify the errors and resubmit the form.
Step 5: Confirm Form Accuracy
Upon ensuring the accuracy of the provided information, a confirmation screen will be presented. If needed, you can choose the edit option to make any necessary modifications.
Step 6: Confirm Application
After verifying all details, click the ‘Confirm’ button to proceed.
Step 7: Payment of Fees
Make the necessary fee payment online using methods such as credit/debit card, cheque, or demand draft payable to NSDL-TIN.
Step 8: Obtain Acknowledgement Slip
Upon successful payment, an acknowledgement slip will be generated. This slip contains a 14-digit acknowledgment number, crucial for tracking your application’s status. Ensure to save, print, and retain this acknowledgement slip.
Step 9: Submission of Documents
Submit the printed acknowledgement slip along with any required documents to Protean eGov Technologies Ltd.
By following the procedure of getting a TAN number for a company, you can effectively apply for a TAN number online and initiate the process of obtaining your Tax Deduction and Collection Account Number.
Offline Procedure of Getting a TAN Number for a Company
The procedure of getting a TAN number for a company via the offline process is as follows:
Step 1: Obtain Form 98
Visit the nearest TIN Facilitation Centre to procure Form 98 for TAN application to start the procedure of getting a TAN number for a company via the offline process. Alternatively, you can download this form from the official Income Tax website. Note that if your business isn’t registered under the Companies Act, you must utilise Form INC-7 instead.
Step 2: Submission of Application
Complete the chosen form with accurate details. Submit the filled-out form along with a processing fee of Rs 63 at the designated TIN counter. Payment can be made through methods like cheque, cash, or demand draft.
TAN Application Status Tracking
To stay informed about the progress of your TAN application, you have two options:
- Call the TAN call centre at 020-27218080.
- Send an SMS with the text ‘NSDLTAN’ to 57575.
By following the given procedure of getting a TAN number for a company, you can successfully apply for a TAN number offline and keep track of your application’s status using the provided contact options.
Downloading Your TAN Certificate Online
After getting to know the procedure of getting a TAN number for a company, companies must also realise how to download their TAN certificate online. The stepwise process is as follows:
Step 1: Access NSDL TIN Website
Begin by visiting the NSDL TIN website, where you can conveniently download your TAN certificate.
Step 2: Select Application Type
Choose the ‘Application Type’ as ‘TAN-New/ Change Request’.
Step 3: Enter Acknowledgement Number
Provide the ‘Acknowledgement Number’ that you received during your TAN application process.
Step 4: Complete Captcha and Submit
Enter the captcha code as displayed and then click on the ‘Submit’ button.
Step 5: Check TAN Status
Upon submission, the page will display the current status of your TAN application.
Step 6: Download Your TAN Certificate
Locate the section labeled ‘Click here to download your TAN Allotment Letter’. Click on this link to initiate the download of your TAN certificate.
By adhering to these straightforward steps, you can successfully download your TAN certificate online from the NSDL TIN website after completing the procedure of getting TAN number for your company.
Final Thoughts
The Tax Deduction and Collection Account Number holds indispensable importance for tax compliance in India. It is a pivotal number for individuals and businesses engaged in tax deduction and collection at source. The procedure of getting a TAN number for a company, whether through online or offline channels, is essential knowledge for seamless financial operations.
Adherence to TAN regulations ensures accurate tax reporting and avoids penalties. Additionally, the guide provides clear steps for downloading the TAN certificate online, enhancing accessibility and convenience for taxpayers. Overall, understanding and following these processes are integral to a well-functioning tax system in the country.
For more information on the procedure of getting a TAN number for a company, connect with our experts at StartupFino.
