New
January 18, 2023
By
Jasmine John

Form 49B TAN Application Form

Form 49B is an application form for allotment of TAN or Tax Deduction and Collection Account Number. The form has to be filled out by the person who wants to apply for the TAN. The TAN is required for individuals, companies, and firms who are required to deduct tax at source or collect tax at source on behalf of the Indian Income Tax Department. According to Section 203A of the Income Tax Act, quoting TAN as provided by section 203A (6) is compulsory. A person responsible for deducting tax at source shall quote a unique Tax Deduction and Collection Account Number (TAN) while furnishing the return of deductions/collections of tax (TDS/TCS). If the deductor fails to quote PAN or quotes incorrect PAN in the statement of deduction/collection of tax, penalty under section 272B would be levied."

Importance of Form 49B

Form 49B is an application form for allotment of TAN or Tax Deduction and Collection Account Number. It is required to apply for any products or services provided by the government through the portal www.mygov.in, which includes:

1. Monthly Income Tax Returns (Form 16)

2. Employee Provident Fund (EPF) Scheme Application Forms

3. E-filing forms for income tax returns etc.

Who requires the TAN?

The TAN is required for individuals, companies, and firms who are required to deduct tax at source or collect tax at source on behalf of the Indian Income Tax Department.

TAN is required for any person who deducts tax at the source or collects tax at the source on behalf of the Indian Income Tax Department.

Applying For A Tan

According to the Income Tax Act, a person applying for a TAN has to submit an application in Form 49B. The form has to be filled by the person who wants to apply for the TAN and not their employer or any other person.

Form 49B is an application form for allotment of TAN or Tax Deduction and Collection Account Number (TAN/CEN) which can be used by any individual or company that will pay tax on income earned from business activities. The form also contains details such as name, PAN number, address, etc., so that it can be sent through post or courier service if required

Post Allotment of TAN 

Once the TAN is allotted, it should be quoted in all TDS returns which has to be furnished by a person responsible for deducting tax.

The Income Tax Department has been issued instructions on Form 49B "TAN Application Form", which is required to be filled by all individuals, firms, and companies having income exceeding Rs 10 lakhs in a year.

Quoting Of Tan

According to Section 203A of the IT Act, quoting TAN as provided by section 203A (6) is compulsory.

According to Section 203A(1), quoting of TAN by a person who has been required under this section or section 302(1) or 303(1) shall be done only in accordance with any directions issued by an officer authorized by a bank or other financial institution concerned for this purpose.

Requirement of TAN

A person responsible for deducting tax at source shall quote a unique tax deduction and collection account number (TAN) while furnishing the return of deductions/collections of tax (TDS/TCS).

The TAN is required for individuals, companies, and firms who are required to deduct tax at source or collect tax at source on behalf of the Indian Income Tax Department.

The TAN is allotted by the income tax department and should be quoted in all TDS returns.

Failing to Quote PAN

If the deductor fails to quote PAN or quotes incorrect PAN in the statement of deduction/collection of tax, a penalty under section 272b would be levied.

Non-quoting of PAN or incorrect quoting of TAN in the statement of deduction/collection of tax attracts a penalty under section 272B. The same is applicable to non-declaration that the tax deducted has been deposited in the bank and it is not possible to ascertain if any amount has been deposited as on a date or not with them or if they have not deposited any amount as on a date. This also attracts penalties under section 272BC (1).

Incorrect Quoting of TAN

Non-quoting/incorrect quoting of tan in challan and statement also attracts similar penalties under section 272bb.

If you quote the TAN incorrectly, and your bank does not provide a copy of the same to you, you will attract a penalty under section 272B. Similarly, if a bank does not provide its customers with copies of their challans or statements, it too will be penalized under section 272BB.

Conclusion

Form 49B is an application form for allotment of TAN or Tax Deduction and Collection Account Number. The application can be downloaded from the income tax website and also obtained from the income tax office.

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