What is TAN? and How is obtain and if there is duplicate TAN is Allotted then how can cancel.

What is TAN? and How is obtain and if there is duplicate TAN  is Allotted then how can cancel.

What is TAN?:

TAN or Tax Deduction and Collection Account Number is a 10 digit alphanumeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

Who must apply for TAN? :

All those persons who are required to deduct tax at source or collect tax at source on behalf of the Income Tax Department are required to apply for and obtain TAN.

Why apply for TAN?: The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Why is it necessary to have TAN? : TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-. How to apply for TAN? : An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns. Addresses of the TIN FC Who will allot TAN? : TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS. What are the documents that need to accompany the TAN application? No documents are required to be filed with the application for allotment of TAN. However, where the application is being made online, the acknowledgment which is generated after filling up the form will be required to be forwarded to NSDL.

 Cancellation of Duplicate TAN:

As we are aware that some times assessee obtain TAN just to make some TDS payments and after those transactions and payments there is no need of that TAN in further future. Also sometimes an assessee may have been allotted multiple TAN. The multiple TAN may have been allotted to the Assessee for many reasons i.e. He may have applied multiple times for allotment of TAN and every time he has been allotted a TAN or may have inadvertently allowed multiple TAN by Income-tax Department, NSDL or UTI. The assessee who have more than one TAN should immediately Apply for the surrender of additional TAN number(s) allotted to them.

Cancellation Procedure Prescribed by NSDL:

In case of duplicate TAN has been allotted, which TAN should be used?:

In case duplicate TANs have been allotted, the TAN which has been used regularly should be used. The rest of the TANs should be surrendered for cancellation using “Form for Changes or Correction in TAN” which can be downloaded from the website of NSDL

The TAN can be cancelled by following procedure:

1. Go to http://tin.nsdl.com.
2. Download the form “Form for Changes or Correction in TAN”
3. Fill up properly and indicate TAN numbers you want to cancel in point 6 of the Form

What do we have to do if we have been allotted a duplicate TAN by oversight?:

In case of duplicate TAN has been allotted, an application may be made for cancellation of the TAN which has not been used in the “Form for Changes or Correction in TAN” which can be downloaded from the website of NSDL (http://tin.nsdl.com) or printed by local printers or obtained from any other source. The application is also available at TIN Facilitation Centres.