Today, an increasing number of people want to set up their own business. While setting up an own business is an ultimate dream they are working towards; there are a lot of things one must take into consideration.
The moment a person decides to become an employer there are few significant documents that must be handy with him. One such document is TAN. Let us try to understand the differences between TIN TAN and PAN.
What is TAN?
TAN is an acronym for Tax deduction Account Number. This particular number is brought to use every time TDS – Tax Deducted at Source comes to play. In layman terms, under the Indian Income Tax Act, 1961 every individual is liable to deduct a certain amount of tax on payment.
As the Indian taxation laws, it is compulsory to submit the Tax deduction Account Number while taking care of all the TDS returns and Challans with your respective bank. Also, one must make a note that TAN is a compulsory document. Violation of the same shall be penalized under the Indian Income Tax Act.
How Does a TAN Look?
It is a 10 digit alphanumeric number. For instance, MAHR02922G. The first four letters are the denotation of the state from where it has been issued. The last five digits coupled with the last letter is what makes the TAN a unique number.
How to Apply for TAN?
National Securities Depository Ltd – NSDL is responsible for issuing the Tax deduction Account Number (TAN). In the early days, one had to queue up in their office and wait for hours to get the process done.
However, with the digital age, getting a TAN has come to the comfort of few clicks away. The NSDL owns its official site, wherein the issuer can fill in the required form making the entire process an online affair. Also, make a note, that a PAN is a mandatory document to issue a TAN.
The site is a self-explanatory one. It provides you with the form known as 49B. You are to fill this form. As mentioned earlier, if at any instance you are stuck while filling the form there are necessary guidelines chalked out for the same. The website also comes with the necessary filling instructions.
The immediate step post filling the form rightfully is the payment. Now one can make payments in different modes. For instance, if you do not wish to make it to their office and make a payment to the counter, you can use other resorts as well. NSDL allows you to make Credit Card or Net Banking payments as well. You can also issue a cheque or demand draft in the name of NSDL – TIN. The fees incurred from them is Rs. 62, which is inclusive of the taxes.
Once the required amount is paid through your choice of mode of payment, the NSDL issues an acknowledgement letter. With the help of this letter, you can track the status of your TAN as this letter consists of all the crucial details related to your TAN.
You need to note that an individual or entity can hold only one TAN as it is considered illegal under the Indian Income Tax Act to hold more than one TAN. Having said that, one can issue different TAN on the basis of the sectors or departments of a single entity or organization.
To know more about TAN in details, go through: How to apply for TAN?
The Bottom Line
One can issue a TAN on their own in these few simple steps. So what are you waiting for? Accomplish your dreams without all these legal technicalities having to hamper you.
Not only does this simplify the process of availing your loan, but also helps you save on time. All you have to do is share a few basic details and check out your loan deal.