Tax deduction and collection account number (TAN) is issued to all companies using which deduct tax at source from its employees and deposit the same with the Income Tax Department of India.
TAN number has to be mentioned in the salary slips of all employees having an annual salary of higher than Rs.2.5 lakh. It has to be quoted in TDS return claims as well.
Also, GST has to be paid on the total revenue generated through the sales of goods and services. Such taxes have to be filed using TAN, monthly quarterly or annually, depending on the TDS amount generated.
Importance of TAN Number
All individuals or businesses responsible for collecting tax are mandatorily required to quote their TAN number during respective deductions. Failure to comply with such rules might lead to a penalty payment of Rs.10,000 levied on total profits.
You can apply for a TAN number with the Income Tax department of India to register for GST online easily –
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The online process for TAN Number
Step 1 – Refer to the official portal ofTax Information Network of NSDL.
Step 2 – Click on ‘Online application for TAN’ to open form 49B.
Step 3 – A list will be displayed, wherein you have to select ‘Category of deductors.’
Step 4 – Fill in all relevant details and submit the form.
Step 5 – Pay the requisite fees through net banking, debit or credit cards, demand draft or cheque.
Step 6 – An acknowledgement slip is generated, containing a 14-digit acknowledgement number, personal information, and payment details.
Step 7 – A print-out of the acknowledgement form, as well as self-attested copies of all relevant documents, have to be sent to the official address of NSDL.
A unique 10-digit alphanumeric TAN will be issued to applicants within 2-4 weeks. This number has to be quoted during GST return filing, to receive reimbursement up to the value of the excess tax paid.
You can also apply for TAN offline by visiting the nearest NSDL centre.
Offline process for TAN Number
Step 1 – Go to thenearest TIN facilitation centre.
Step 2 – Collect form 49B.
Step 3 – Fill in all relevant details, including personal information and information about the company.
Step 4 – Pay the requisite fees for new TAN allotmentthrough cheque or demand draft.
Step 5 – An acknowledgement form will be furnished upon successful payment.
Registering your business for TAN not only helps avoid the penalty charges levied but also increases credibility. Nonetheless, an important thing to know about TAN is that certain business ventures enjoy flexibility in the registering process, as they don’t have to sign up for it mandatorily.
GST return filing under such provisions of the Income Tax Act can be done by visiting the official GST portal directly. Payment of such combined taxes is known to reduce the tax burden effectively, increasing the competitiveness of business through reduced cost of production.
Accurately filed GST returns are important documents required to avail external financial assistances such as business loans.
Financers such as Bajaj Finserv offer such loans against minimal documentation and at affordable interest rates as well.
Pre-approved offers provided by this NBFC make the loan approval process quick and hassle-free as well. Such offers are available on numerous financial products such as home loans, loans against property, personal loans, professional loans, etc.
Instant sanction of high-value loans helps businesses flourish, as funds realised can be utilised to expand respective companies, along with higher annual turnover.
As the GST regime increases the process of tax collection through TAN number, such tax liabilities can be fulfilled with ease, helping companies keep track of total profits realised.