Every person who is required to deduct or collect tax at source on any of the specified payments, needs to apply for allotment of Tax Dedication and Collection Account Number (TAN). TAN should be quoted on all TDS/TCS Challans, Certificate, Statement and Return. [Section 203A]
How to Apply
As per rule 114, application for allotment of TAN shall be made in Form No. 49B in duplicate. The application shall be made to the Assessing Officer of the TDS Circle. Application for allotment of TAN should be made within one month from the end of the month in which the tax is deducted or collected for the first time. Where separate TDS circles have not been established, the application shall be made to the Assessing Officer having the jurisdiction to assess the applicant.
Once a TAN is allotted to a person, he need not make any more application for TAN, in respect of TDS/TCS on any other kind of payment. Thus, TAN resembles with Permanent Account Number (PAN). As per CBDT Circular No. 497, dated 9.10.1987, in the metropolitan charges of Ahmadabad, Bangalore, Mumbai, Calcutta, Delhi, Hyderabad, Chennai and Pune the work of allotment of TAN has been centralized at the headquarters of the charges.
Failure to apply for TAN attracts a penalty of Rs. 10, 000 under Section 272BB (1). Thus, the person concerned should submit the application for allotment of TAN immediately.
Status of TAN Application
The application can enquire about the status of their TAN applications through SMS based facility launched by National Securities Depository Limited (NSDL). The applicant is required to send an SMS to 3030 containing TAN <14 digit acknowledgement number of the application>. The status of applications can also be seen at NSDL-TIN website www.tin-nsdl.com or enquired from NSDL Call Center or Aykar Sam Park Kendra.