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Post-implementation of GST, tax collection has become a crucial and mandatory matter. In an attempt to ease the collection process and ensure the accurate follow-ups of TDS or TCS returns, certificates, payments – the Government of India launched TAN number to streamline every point of this process.

What is TAN number?

TAN number full form is Tax Deduction and Collection Account Number. It is a 10-digit alpha-numeric code that is issued by the Income Tax Department to those individuals, companies, firms, etc. who require to deduct TDS or TCS. It consists of details like unique 6-digit system-generated ID, individual’s jurisdiction, initials of the company or person. 

Failure to obtain this number or quoting an incorrect TAN number may draw a penalty of up to Rs. 10,000.

How to apply for TAN number?

The Government of India has made it mandatory to have and know your TAN for all TCS or TDS functions while paying dividends, salary or interest, or applying for financial assistance via business loans. The application process for TAN includes - 

• Online mode

Step 1: Visit the official website for filling in the TAN application form.

Step 2: Apply for TAN and provide the necessary details including –

• Contact details.
• Space for signature.
• Name of applicant.
• 14-digit unique acknowledgement number.
• Payment details.
• Status of application.

Step 3: Sign within the provided boxes and submit the form.

Step 4: Attach documents of identity and residence over to the NDSL-TAN Application division and pay nominal fees via debit or credit card, demand draft, or cheque. 

• Offline mode 

Fill up Form 49B in duplicate and submit it in a TIN Facilitation Centre. In case of companies that are not registered under the Companies Act, 2013, application needs to be made in SPICe, or Form No. INC-32.

Apart from this, make sure to look into the required documents for TAN application. Considering that this is everything you need to know about TAN, make sure to apply for it at the earliest to continue with your TDS and TCS deduction.

Read More about TAN Number, Here: All About TAN Number – What it is and How to Apply?