TAN number is allotted to entities by the Income Tax Department for deducting tax from taxpayers. Now, it could happen that an individual employer or a firm responsible for tax deduction inadvertently ends up with two TAN numbers. Keep in mind that carrying two different TAN allotted to one single individual is illegal.
How to surrender duplicate TAN?
Individuals or companies must take all the necessary steps to surrender their duplicate TAN numbers allotted to them. It is essential to point out if an entity or firm has various branches – then they are free to use two different TAN numbers. Besides, if by mistake two TANs are allotted, you must use the one which has already been used.
There is a procedure through which you can surrender the TAN that is not used regularly. Visit TIN NSDL and navigate to ‘Form for changes or correction in TAN’. Fill-up the application and submit with all the necessary details.
You will be asked to provide details like 10-digit TAN, deduction category, address, nationality, PAN and the second TAN number (if allotted). Applicants are required to prove TAN allotment by submitting allotment details issued by the IT department. You can also download the application form and send it from any TIN facilitation centre near you.
TAN number full form or Tax deduction and Account Collection Number can also be rectified in case of discrepancies in data. You are required to fill a form highlighting the corrections necessary for TAN data and inform the Income Tax authorities accordingly.
Why is TAN important?
Be it tax deposits, issuance of TCS and TDS certificates or you running a successful trading business – holding a TAN is crucial for all aspects. Moreover, as per Section 230A of the Income Tax Act of 1961, it is compulsory to quote TAN for the following documents:
- TDS and TCS statements
- Statement of reportable accounts and financial transactions
- TDS or TCS certificates
- Challans for payments of TCS and TDS
Thus, obtaining your TAN number is mandatory for business entities or individuals who are authorised to collect or deduct tax. As per Section 272BB of the Income Tax Act of 1961, in case you fail to furnish correct TAN details – you can incur a penalty of up to Rs. 10,000.
Further, if you ever require funds for your business, you need to furnish IT return files along with other documents. For instance, if you procure a Business Loan from lenders like Bajaj Finserv, you will be asked to provide PAN, IT details, etc.
It can fetch you a hefty sum of up to Rs. 30 Lakh at competitive interests with zero-collateral. However, you need to check the eligibility criteria and the documents required for a business loan. You can also enjoy pre-approved offers if you are an existing customer of this lender.
These pre-approved offers streamline the process of availing finances via minimal documentation and instant loan processing.
Also Read: Common Tax Mistakes That Can Cost You a Lot
Apply for TAN (online/offline)
As it is essential to know your TAN, here is a guideline of the application process:
- Online application procedure
TAN application can be easily applied online from the official website of NSDL TIN. You will receive an acknowledgement on confirmation of accurate uploading of TAN allotment application.
- Offline application procedure
If you choose offline mode of TAN application, you must visit the nearest TIN-FC (Facilitation Centre) and submit the TAN application in Form 49B. The TIN-FC addresses are provided on the website.
Now, that you know what TAN is and how it can help you, this information will prove valuable for businesses paying commission or salary to any entity and secure a lifetime of financial freedom.