How to Surrender a Duplicate TAN

Overview about the TAN (Tax Deduction and Collection Account Number)

TAN (Tax Deduction and Collection Account Number) is a unique alphanumeric code issued by the NSDL  or UTIITSL  in India. It is a ten-digit number required for various tax-related transactions, particularly for deducting and remitting tax deducted at Source .

It is mandatory for all entities & individuals who are liable to deduct Tax Deducted at Source or collect Tax Collected at Source.

It uniquely identifies the tax deductor or collector, ensuring proper tracking and crediting of taxes deducted or collected at source. As per Section 203A of the Income Tax Act, Tax Deduction and Collection Account Number must be quoted in all TDS/TCS-related transactions.  This includes quoting Tax Deduction and Collection Account Number while deducting or collecting tax, making payments through challans, filing TDS/TCS returns, and issuing TDS certificates to deductees.

TAN is required in the following scenarios:

• Collecting TCS on specified transactions like the sale of certain goods.
• Deducting Tax Deducted at Source on payments such as salaries, interest, rent, professional fees, etc.
• Making payments through Tax Deducted at Source /TCS challans to the government.
• Filing quarterly Tax Deducted at Source /TCS returns.
• Issuing Tax Deducted at Source /TCS certificates to the deductee/collectee

Steps to Apply for TAN- Guide on the TAN application process

1. Apply the TAN application

1. • Entities and individuals required to deduct or collect tax at source need a TAN. This includes employers deducting TDS on salaries, businesses making specified payments subject to TDS, and others as mandated by the Income Tax Act. Recommended for ease and speed. Can be done through the NSDL e-Governance or UTIITSL website. Alternatively, you can submit a physical application at TIN Facilitation Centers managed by NSDL or UTIITSL offices.

2. Online Application Process:

1. • Go to the NSDL e-Governance or UTIITSL website. Select and fill out Form 49B, the application form for TAN. Enter all required details accurately, including name, address, type of deductor, and other relevant information.
   • Pay the application fee online using a credit/debit card, net banking, or demand draft. After filling in the details and making the payment, submit the form online. You will receive an acknowledgment receipt.

3. Offline Application Process:

1. • Download Form 49B from the NSDL e-Governance or UTIITSL website or obtain it from a TIN Facilitation Center. Fill out the form accurately, providing all necessary details.
   • Attach a demand draft for the application fee if required. Submit the completed form along with the fee at the nearest TIN Facilitation Center or UTIITSL office. Obtain an acknowledgment receipt upon submission.
   • Use the acknowledgment number to track the status of your TAN application on the NSDL or UTIITSL website. Upon successful processing, the TAN will be sent to the address mentioned in the application form.

4. Important Notes :

Applying for a TAN is a straightforward process that can be completed online or offline. By following the steps outlined above and ensuring the accuracy of the information provided, you can obtain a TAN efficiently and comply with tax deduction and collection requirements in India.

Ensure all details provided in the application form are accurate to avoid delays or rejections. Keep ready any supporting documents that may be required to verify the information provided. Retain the acknowledgment receipt for tracking the application status and future reference.

Ensure that you do not apply for multiple TANs unless required for different branches or divisions of your organization

How deal with Duplicate Tax Deduction and Collection Account Number (TAN) 

• A duplicate Tax Deduction and Collection Account Number arises when a person or entity already possessing a valid Tax Deduction and Collection Account Number applies for and receives an additional TAN.
• This situation is generally considered non-compliant unless the additional Tax Deduction and Collection Account Numbers are for different branches or divisions of an organization, which require separate Tax Deduction and Collection Account Number’s for operational reasons.
• It is illegal to have more than one Tax Deduction and Collection Account Number for the same entity or person, as it can lead to confusion and improper crediting of TDS payments.
• If a duplicate TAN is inadvertently obtained, the entity or individual must surrender the duplicate Tax Deduction and Collection Account Number to the Income Tax Department and continue using the originally allotted TAN.

How to Surrender a Duplicate TAN

Steps to Surrender or Cancel TAN (Tax Deduction and Collection Account Number)

1. Identify the duplicate TAN: Determine which Tax deduction and collection account number is being used and which one is to be surrendered. Prepare necessary documents: Like Original TAN Allotment Letter, Proof of Identity, Proof of Address, any other Supporting Documents,
2. Obtain the Form for Changes or Corrections in TAN Data for TAN Allotted (Form 49B), which can be downloaded from the NSDL e-Governance website.
3. Fill out the form accurately, providing details such as the existing TAN number, reason for surrender or cancellation, and other relevant information. Indicate clearly in the form that the TAN is being surrendered/canceled.
4. Submit the completed application form along with the required documents to the nearest TIN Facilitation Center (managed by NSDL) or the relevant ITO. Ensure all information is accurate and documents are properly attested if required.
5. Submit an application: Submit a formal application to the Income Tax Department or through the NSDL e-Governance website, requesting the cancellation of the duplicate Tax Deduction and Collection Account Number
6. Provide Necessary Documentation: Include necessary documentation, such as copies of the TAN allotment letters and a cover letter explaining the reason for surrender.
7. After submission, follow up with the Income Tax Department or the TIN Facilitation Center to track the status of your application. Respond promptly if additional information or documentation is requested.
8. Upon approval, you will receive a confirmation letter or notification from the Income Tax Department indicating that your TAN has been surrendered or canceled.

Penalties for Failure to Apply for TAN or False Quoting of TAN in TDS Returns

The Income Tax Act prescribes specific penalties for non-compliance with Tax Deduction and Collection Account Number requirements:

• Failure to Apply for TAN: If an entity or individual who is required to deduct or collect tax at source does not apply for a Tax Deduction and Collection Account Number, a penalty of INR 10,000 may be imposed u/s 272BB(1) of the Income Tax Act.
• False Quoting of TAN: If an incorrect Tax Deduction and Collection Account Number is quoted on TDS returns, certificates, or any other related documents, a penalty of  INR 10,000 may be imposed u/s 272BB(1A) of the Income Tax Act

Tax Deducted at Source (TDS) Rate Chart 

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The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.