Essential Documents Needed to Apply for TAN in India

A Tax Deduction and Collection Account Number, commonly known as TAN, is a unique identification number required by businesses and organizations in India responsible for deducting or collecting tax at the source (TDS/TCS). This ten-digit alphanumeric number is issued by the Income Tax Department under the Indian Government and is crucial for the proper handling of TDS-related transactions.

Acquiring a TAN is a relatively straightforward process, but it requires some documentation to ensure the applicant’s legitimacy and compliance with regulations. Below, we discuss the documents and steps necessary to obtain a TAN in India.

1. Understanding TAN and its importance

Before moving to the list of documents that need to be submitted for obtaining a TAN, let’s first know what a TAN is. TAN is needed by those persons who are entitled to make deductions or collections on account of tax from the Income Tax Department. 

It is necessary to submit TDS/TCS returns and all other TDS related activities. These entities cannot make TDS filings and thereby face penalties and hold back their processes if they do not have a valid TAN.

Who needs to apply for a TAN?

Any individual or organization liable to deduct or collect tax at the source, under the Income Tax Act, needs to apply for a TAN. This includes:

• Employers deducting TDS on salaries
• Banks deducting TDS on interest payments
• Businesses making certain types of payments to vendors
• Any entity involved in specified financial transactions requiring tax deduction or collection

2. Documents required for TAN application

Getting a TAN is quite simple and the paperwork that is needed is very little. It is also possible to apply online or fill in the paper form. The required documents vary with the type of applicant – citizen, company or organization, or government agency.

For individuals and sole proprietors

For individuals or sole proprietors, there is not much paperwork to do. The following information and documents are required:

1. PAN card details

The PAN code of the applicant is also very significant especially if the TAN of the applicant is used for tax purposes.

2. Identity proof

While it is not mandatory to attach it with the application, an Aadhaar Card, Passport or Voter ID may be asked for identification.

3. Address proof

Similar to the case of identity proof, address proof, that can be a utility bill, a bank statement or a property registry document, may be requested for confirmation.

For companies and organizations

For any business or organization, further information has to be submitted in order to identify the organization and to confirm the tax Hay’ah compliance. The following documents are typically required:

1. Certificate of incorporation

For the purpose of this tender, Companies and organizations are required to submit a certificate of incorporation as issued by the Ministry of Corporate Affairs (MCA) or any other regulatory body.

2. Partnership deed

For partnerships, a copy of partnership deed acts as an important document.

3. PAN card of the company/organization
The same as for individuals, the PAN of the entity is necessary in connecting TAN with other tax submissions.

4. Address proof of the company
For this purpose, a copy of the company’s address- the utility bill, bank statement or registration document, has to be submitted.

5. Authorized signatory details
Sometimes, it is also required to provide information about the person who is authorized to sign on behalf of the organization, and the identification of the address of that person for filing tax returns.

For government entities

It is also necessary for government departments and bodies to have a TAN in order to manage TDS responsibilities. The documentation requirements are slightly different:

1. Letter of authorization

A letter from the head of department or any other authorized officer to indicate the official to handle TDS affairs.

2. Address and identity proof
Government entities may be required to provide a copy of the office address and identity of the authorized person.

3. Steps to apply for TAN

After acquiring the documents that are required you can easily apply for TAN. Here’s a step-by-step guide to the application process:

Step 1: Obtain form 49B

Form 49B is used to make an application for obtaining TAN. This is both over the internet on the TIN-NSDL website and at facilities that have been designated to offer TIN services.

Step 2: Fill in the application form

Both in the online and offline application, fill in the details required for the application correctly. It is advisable to verify all the information entered in the form, for example, TAZ being obtained only when all the necessary information is correct in the application for TAN.

Step 3: Please submit your application and documents:

For online applications, fill the form and submit it online; however, you must attach the printed acknowledgement slip that you will receive to the necessary documents and submit it to the NSDL office. In a case of offline applications, the form and the required documents are submitted to a TIN facilitation center.

Step 4: Pay the application fee

An application fee is payable when filing Form 49B. The fee can be paid via the internet or at the facilitation center.

Step 5: Track your application status

When you have submitted your form for application of TAN, you can check the status of your application on the TIN-NSDL website. If approved, the TAN will be given to the applicant within one or two weeks.

Conclusion

Getting a TAN is compulsory for every person who is responsible for deducting or collecting tax at source in India. If all the documents are in order and all the steps of application have been followed, it is relatively easy to obtain TAN. For further information on TDS procedures and how to meet the current tax law regarding TDS return filing, you can attend the TDS return filing course in Super 20 Training Institute. 

This is a complete course on TDS, filing, compliance and management hence suitable for anyone who wants to get comprehensive information about tax compliance. Super 20’s experience comes in handy to make sure you are armed with the right information on how to go about filing your TDS return.