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Introduction:

At the beginning of your taxation journey, you may fear the complexity of the documentation and identification procedures that you must undergo. The Income Tax Act of 1961 contains many provisions on the authentication of individuals’ identities which are due to be used in tax-related purposes. This prerequisite not only applies to taxpayers themselves, but also to people involved in tax refund or collection. Those in charge of such processes should have the required verifications.

TAN:

TAN/Tax Deduction and Collection Account Number is one unique ten digit alphanumeric code that belongs to a taxpayer who may be a nominee of deduction or collection on the Income Tax Department(ITD). Per 203A Section of Income Tax Act, TAx Deducted at Source (TDS) statements shall be incorporated on the forms that correspond to TDS (Tax Deducted at Source). A tax payer can lodge into the official website (www.incometaxindia.gov.in) to know his new TAN code. Secondly, they must confirm this TAN, before reflecting it on their electronic TDS statements. This process saves a substantial amount of time and effort, as well as it guarantees easy filing of e-TDS statements at one click.

Who is required to apply for TAN?

Every individual with the responsibility of Tax Deduction at Source (TDS) or Tax Collect at Source (TCS) shall obtain a TAN before undertaking any business relating to TAN. It is mandatory for all to incorporate in the e-TCS/TDS returns, TDS payment challans, and TDS certificates to ensure that all TCS/TDS obligations are duly addressed.

Importance of TAN:

Anyone having to get a TAN will experience a degree of trouble at the time of returns filing if he or she fails to get it. Concealing the TAN number in the returns or other document shall attract a penalty of Rs.10,000. undefined

• TCS / TDS statements

•The challan of payment for a TDS or a TCS should include the TAN.

• TAN should be mentioned along with TCS and TDS certificates submission.

• The transmission of digital forms such as TAN should be incorporated into the collection / submission procedure of various IT forms.

Structure of TAN:

The TAN, with its ten-digit alphanumeric format, possesses a distinct structure, outlined as follows:The TAN, with its ten-digit alphanumeric format, possesses a distinct structure, outlined as follows:

• The first four digits is made of a letter combination, remarkably the primary three letters indicating the jurisdiction that issues the TAN, while the fourth letter shows either an elided initial of a company/individual claiming the TAN.

• The following group of five numbers is just a number, and it will be encoded by the machine into the identification when it creates a number.

• To make a deal more secure, the final character, a letter, is located at the end of the record. The entire record creates a unique identifier, which is the systems way of confirming that the deal is archived in one place.

Application Process:

There are two methods available for applying for a TAN: There are two methods available for applying for a TAN:

• In offline method ,Candidates are required to submit completed form 49B along with applicable fees at any of Protean-assigned Tax Identification Number Facilitation Centers (TINFCs). Instead, one can simply download the application form from the NSDL website and put it together with the fees at the TIN-FC. IT employees don¹t need to receive the supporting documents when the employee in question wants to file a TIN application in person.

• Applicants can submit their TAN applications through a portal by visiting the authorized website of NSDL. The next steps are for them to read the instructions carefully and complete the online form, from which they submit it. On the online submission itself, they will be received their acknowledgement number which is to be printed and post to the NSDL, Pune office. The fees can be submitted online or according to a draft or cheque via the submission of requisite fees.

• The information received to this effect is verified by the IT department which issues TAN to the applicants to NSDL. Having received the address of the applicant or via email NSDL will proceed to send the TAN details in the Form 49B.

• Rs.65 is the charge for an accomplishment of the TAN application inclusive of GST.

How to Search TAN:

Individuals who have misplaced their TAN number can conveniently retrieve all the TAN details online by following these simple steps: Individuals who have misplaced their TAN number can conveniently retrieve all the TAN details online by following these simple steps:

• Visit the government’s official IT website on the link ‘Know your TAN’ under the department section.

• Then a new window showing the choice ‘TAN search’ will pop up.Choose ‘Name’.

• Notably, fill out the ‘Category of Deductor’ section precicely.

• Subsequently, you will be asked to fill in the abode field (your state), give your name and the active number (for phone verification).

• Then click on the ‘Continue’ button and fill in the details required for adoption procedures which is now your responsibility.

• An OTP will be sent to the registered mobile number. Type your email address here. Type the characters you see below into the appropriate field on the following page.

• Okay, now click ‘validate’ button to finalize the process.

• Information TAN is provided on the next page.

Important Features:

A single taxpayer is granted one TAN no more.

• TAN or PAN cannot be interchanged like with different and distinct functions.

• Any variations in data that is given to the department needs to be updated as the records are dependent on the accuracy of the reflected data.

•In case of a company which is not incorporated under Companies Act, provisions of section 7(1) will be applied and accordingly Form INC 32 given under Chapter 32 of the Companies Act will be used for application.

Conclusion:

The Tax Deduction and Collection Account Number (TDCSN) is an essential part of the tax system in India. This source deduction/collection tax identification function which sets apart the responsible tax institutions is a very crucial pillar in the maintenance of tax compliance. TAN bearers witness a unique set of obligations, including fixed tax deduction and time-sensitive submission of TDS/TCS returns, and the inclusion of TAN in every tax-connected transaction.