How to File Form 49B for TAN Application?

Form 49B for TAN Application

Updated on 24 Oct, 2023

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What is TAN? and Why is TAN Necessary?

TAN stands for Tax Deduction and Collection Account Number. The Income Tax Department issues TAN to taxpayers. Moreover, individuals and businesses who are obligated by the Income Tax Act of 1961 to deduct or pay tax on payments, are required to receive TAN.

A TAN is essential for everyone who must deduct tax at source (TDS) or collect TCS. A tax deductor as well as a collector receives a 10-digit alphanumeric number which is similar to PAN. The person who submits an application for this number will receive it from the IRS. The taxpayer must use the TAN for all TDS or TCS payments and mention it on every TDS return and Form 16. If a person deducting tax at source does not have a TAN, they may face a penalty of up to Rs. 10,000. Failure to quote TAN in TDS challans and TDS certificates is also subject to a penalty of Rs.10,000.

Who Should Apply For TAN?

All taxpayers who are responsible for deducting tax at source (TDS) or collecting tax at source (TCS) must get a TAN. The first four digits of TAN are alphabets, the next five are numeric, and the final one is an alphabet.

What is Form 49B?

Form 49B is an application form for the assignment of a TAN number or TAN deduction and a permanent account number under section 203A of the Income Tax Act of 1961. Using Form 49B, an individual must apply for a new TAN. Form 49B is available at any Taxpayer Identification Number (TIN) facilitation centre.

TAN registration is mandatory for all entities who are required to deduct TDS from payments. A Tax Deduction or Collection Account Number (TAN) is a ten-digit number. It is provided to all individuals who are entitled to deduct or collect tax on payments made to them under the Indian Income Tax Act, 1961. Form 49B is a required document for obtaining a TAN number, and all taxpayers who pay TDS must be familiar with it.

How to Apply for TAN Online with Form 49B?

The steps to apply for TAN online with Form 49B are as follows:

Step1: Select “Online Application for TAN (Form 49B)” at https://tin.tin.nsdl.com/tan/index.html

Step 2: Click on the option “Online Application for TAN (Form 49B)”.

Step3: Under ‘Category of Deductors,’ scroll down to the bottom of the page to discover a drop-down list.

Step 4: Fill in the required information, double-check the information, and submit the form by clicking the “Confirm” button.

Step 5: A screen will appear verifying that the form has been sent to the income tax department. Take down the 14-digit acknowledgement number that appears.

Step 6: Print the acknowledgement form and sign it in the space provided on the printed copy.

Step 7: Send the acknowledgement slip and relevant papers to NSDL.

Things to Consider While Filing Form 49B

On Form 49B, you must submit information about the Assessing Officer.
The form requires information such as the income tax circle, area code, and district. Read the form to learn how to determine this information.
Get it confirmed by a gazetted officer/notary/magistrate if you use a left thumb impression instead of a signature to authorize the form.
If you are an individual applicant, you can only authorize the acknowledgement with a thumb impression. If you applied under a different deduction category, you must sign the acknowledgement slip.
Form 49B is incomplete if any sections are blank.
It is important that you fill out the form with your designation.
The address in the form must be located in India.

Documents Required

Each person, such as an individual or partnership firm, has different requirements for submission of the documents for the TAN application which are as follows:

For Individuals

When applying online, users do not need to send any documents other than the application form and the fees. If you apply offline or through an agent, you must present KYC documents, which include the following:

A passport size photo
Adhaar card as a proof of address.

For Partnership Firm

The following is a list of documents that the applicant partnership firm must submit with the application form:

An application form that is completely filled out and signed.
A passport-sized photograph of each authorized partner.
ID Proof of all partners as evidence.
Address proof for the existing office space.
The most recent or updated partnership deed.
The company’s account statement for the previous three months.
The registration certificate obtained for running the business.
Two passport-size photos, government-issued ID proof as evidence, and address proof of the partners.