Introduction
If you are planning to start a business in India, you need to register for a Tax Deduction and Collection Account Number (TAN) with the Income Tax Department. TAN is a 10-digit alphanumeric code that is required for businesses to deduct and deposit taxes at the source. In this blog, we will discuss how to register for a TAN in India.
What is TAN?
TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric code that is issued by the Income Tax Department of India. Any business or individual who is responsible for deducting and depositing taxes at the source is required to have a TAN.
Why is TAN registration necessary?
TAN registration is necessary for businesses and individuals who are responsible for deducting and depositing taxes at the source. It is mandatory as per the Income Tax Act, 1961. If a business or individual fails to obtain a TAN, they may be penalized.
Documents required for TAN registration
The following documents are required for TAN registration:
- PAN Card
- Address proof (Aadhar Card, Voter ID, Passport, Driving License, etc.)
- Proof of business (Incorporation Certificate, Partnership Deed, etc.)
TAN registration process
The TAN registration process can be completed online or offline. Here are the steps for online registration:
- Visit the NSDL TIN website (https://www.tin-nsdl.com/).
- Click on the “TAN” option under the “Services” tab.
- Select “Apply Online” and choose the appropriate form based on the type of business entity.
- Fill in the required details, such as PAN, name, address, contact information, and the purpose of TAN.
- Upload the required documents.
- Make the payment of the TAN application fee (currently Rs. 65 plus GST).
- Submit the application.
After the submission of the application, the applicant will receive an acknowledgement receipt with a 14-digit unique acknowledgement number. The TAN will be issued within 15 working days from the date of receipt of the application.
Offline TAN registration
If you prefer to complete the TAN registration process offline, you can do so by visiting any of the NSDL TIN facilitation centers. Here are the steps for offline registration:
- Visit any of the NSDL TIN facilitation centers.
- Fill out the TAN application form.
- Submit the form along with the required documents and the application fee.
- Once the application is processed, the TAN will be issued.
Validity and renewal of TAN
Once a TAN is issued, it is valid for an indefinite period, and there is no need to renew it. However, it is essential to ensure that the TAN is used regularly and that any changes in business structure or details are updated with the Income Tax Department.
Correction or change in TAN details
If there are any errors or changes required in the TAN details, it is possible to apply for corrections or changes through the NSDL TIN website. The application for correction or change can be made for changes in name, address, contact details, etc.
Fees for TAN registration
Currently, the application fee for TAN registration is Rs. 65 plus GST. The payment can be made online through the NSDL TIN website or offline at any NSDL TIN facilitation center.
Consequences of non-compliance with TAN registration
Non-compliance with TAN registration can lead to severe consequences, such as penalties and legal action. Any business or individual who is responsible for deducting and depositing taxes at the source and fails to obtain a TAN is liable to pay a penalty of Rs. 10,000. In addition, non-compliance can also lead to legal action and prosecution.
Who needs to apply for TAN?
As per the Income Tax Act, 1961, any business or individual who is responsible for deducting and depositing taxes at the source needs to apply for TAN. This includes employers deducting taxes from employee salaries, banks deducting taxes on interest income, and businesses making payments to contractors, freelancers, or vendors.
How to verify TAN details?
Once a TAN is issued, it is essential to verify the details to ensure accuracy. The Income Tax Department has an online portal called “Know Your TAN” that can be used to verify TAN details. It requires entering the TAN number and the name of the deductor or the PAN of the deductor.
Penalties for non-compliance with TAN
Non-compliance with TAN can lead to severe consequences, including penalties and legal action. Any business or individual who is responsible for deducting and depositing taxes at the source and fails to obtain a TAN is liable to pay a penalty of Rs. 10,000. In addition, non-compliance can also lead to legal action and prosecution.
TAN application for foreign companies
Foreign companies doing business in India and making payments to residents need to apply for TAN. The process is similar to that of Indian companies, and the application can be made online or offline.
Conclusion
TAN registration is an important aspect of doing business in India. It is mandatory for businesses and individuals who are responsible for deducting and depositing taxes at the source. The process of TAN registration is straightforward and can be completed online or offline. By following the steps mentioned in this blog, you can easily obtain a TAN for your business.
Read more useful content:
- How to Save Tax on Salary
- Guide to Understanding Direct Taxes in India
- Filing Income Tax Returns
- GST E-invoice
Frequently Asked Questions (FAQ’s)
Q1.) Who is required to apply for a TAN?
Any individual or business entity who is responsible for deducting and depositing tax at the source is required to apply for a TAN.
Q2.) How can I apply for a TAN?
You can apply for a TAN online through the NSDL TIN website or offline by visiting any NSDL TIN facilitation center.
Q3.) What documents are required for TAN registration?
The required documents include a copy of the PAN card, address proof of the business or individual, and identity proof.
Q4.) What is the processing time for TAN registration?
The processing time for TAN registration is typically one to two weeks from the date of submission of the application.
Q5.) Is there a fee for TAN registration?
Yes, there is a fee for TAN registration. The current fee is Rs. 65 plus GST.
Q6.) Can I apply for TAN registration on behalf of another person or entity?
No, you cannot apply for TAN registration on behalf of another person or entity. Each person or entity must apply for their own TAN.
Q7.) What is the validity of a TAN?
A TAN is valid for an indefinite period and does not require renewal.
Q8.) What happens if I do not apply for a TAN?
Non-compliance with TAN registration can lead to severe consequences, such as penalties and legal action.
Q9.) Can a TAN be used for multiple branches or locations of a business?
No, a separate TAN is required for each branch or location of a business.
Q10.) How can I verify the status of my TAN application?
You can verify the status of your TAN application online through the NSDL TIN website or by contacting the TIN facilitation center where you submitted your application.
