What is Form 49B?

Form 49B, following Section 203A of the Income Tax Act, 1961, serves as the application form for obtaining a Tax Deduction and Collection Account Number (TAN). This 10-digit identifier is crucial for entities authorised to withhold TDS on payments. It is assigned to individuals responsible for deducting or collecting taxes on payments made in compliance with the Indian Income Tax Act 1961. Familiarity with Form 49B is imperative for taxpayers engaged in TDS payments.

What is Form 49B?

You might ask what is form 49B. In accordance with Section 203A of the 1961 Income Tax Act, Form 49B is a vital tax-related document that individuals must complete and submit to obtain a Tax Deduction and Collection Account Number (TAN). 

Applicants must ensure accurate and error-free completion of Form 49B since it is important for payees lacking a TAN. It's worth noting that banks have the legal authority to decline payment processing for those without a TAN. Individuals who are required to deduct taxes but fail to possess a TAN may face a penalty of Rs 10,000.

The application process for Form 49B does not necessitate any additional documents. TAN must be filed, whether online or offline, when filing either the Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) return. 
Applicants can initiate the application through the official portals of the National Securities Depository Limited or UTI Infrastructure Technology and Services Limited. During the online submission process, applicants must also mail proof of their identity and residency to the NSDL TAN Registration Division.
 

Why Is TAN Necessary?

Anyone obligated to perform Tax Deduction at Source (TDS) must possess a Tax Deduction and Collection Account Number (TAN). It is a 10-character alphanumeric code allocated to individuals or entities responsible for tax deduction and collection. 

This unique identifier is issued by the income tax department upon request. It is imperative to utilise the TAN for all TDS and TCS payments and include it on every TDS return. Failure to obtain a TAN when required can result in a penalty of up to Rs.10,000. Additionally, neglecting to mention the TAN on TDS challans and certificates can incur a penalty of Rs.10,000.
 

Documents Required for TAN Application

The documents needed for TAN application are as follows:

• Applicant's PAN
• Deductor's personal information such as address, name, contact information, etc.
• Responsible person of company's digital signature certificate
• Incorporation certificate of company
• Responsible person's details 

If you are applying for TAN online, you can send the acknowledgement number printout from the Income Tax Department. Also, you can view the acknowledgement of the TAN after submitting Form 49B on the NSDL website. Moreover, if you have to file form 49B by submitting a physical application, no other supporting document is necessary. 
 

How to Fill Form 49B for TAN?

Prior to filing the form 49B, you must avoid overwriting or editing the specific form. This will reduce the probability of getting your application rejected. Here's what you must remember while filing Form 49B:

1. Please provide all required details in block letters to ensure the information is easily readable.
2. Details regarding the Assessing Officer must be provided, which can be obtained from the Income Tax Office.
3. In order to enhance visibility, enter one letter in each designated box.
4. Precise information related to the area code, district, tax circle, etc., should be supplied, and you can obtain this data from either the TIN Facilitation Center or the income tax office.
5. For your left thumb impression, it must be validated by either a gazetted officer or a magistrate. This requirement is applicable exclusively to individuals applying for TAN through the offline mode. If you fall under the 'Other category of deductors,' it is vital to affix your signature on the acknowledgement slip.
6. It is mandatory to complete all sections of this Form 49B; no empty spaces on the form will be considered.
7. Your designation must be explicitly mentioned, and the provided address must be within the territory of India.
    

Online Procedure for TAN Application

1. Visit the website at https://tin.tin.nsdl.com/tan/.
2. Select the 'Apply for New TAN' option.
3. Opt for the 'Online Application' choice.
4. Choose your 'Category of Deductors' from the provided drop-down menu.
5. Form 49B will now become visible. Complete the form, review the information for accuracy, and submit it by clicking the 'Confirm' button.
6. Make a note of the 14-digit number that is displayed.
7. Print out the acknowledgement form and self-attest it.
8. Send the attested slip to NSDL Headquarters.
    

Guidelines for Filling Application Form 49B

Here are some essential guidelines that the applicant should bear in mind when completing Form 49B:

1. Form 49B must be filled out exclusively in English, using capital letters to ensure the entries are easily readable.
2. While filling out the form, placing a single letter in each text box is essential to enhance readability and clarity.
3. The deductor or tax collector must provide details of the assessing officer. These details can be obtained from the Income Tax Office if they are not readily available.
4. The tax collector or deductor should also provide details related to the area, area code, district, etc. If this information is not readily available, the Income Tax Office can be consulted prior to completing Form 49B online.
5. If the left thumb impression is used for signing the form, it should be attested by a gazetted officer, notary, or magistrate. Only individuals applying for TAN can use their left thumb impression; those applying under other 'categories of deductors' must sign the printed acknowledgement slip.
6. Form 49B online should be completely filled out; no empty or incomplete sections will be considered.
7. The person responsible for filing and submitting the Tax must include their designation as a mandatory requirement.
8. The provided address must be an Indian address.

Once Form 49B is filled and submitted, the Income Tax Department will verify the provided details. If the application is deemed correct, Protean eGov Technologies Limited will either send the new TAN details to the address specified in Form 49B online or email the TAN information if the application was submitted online.
 

How to Download TAN Form 49B?

You can visit the official site of https://tin.tin.nsdl.com/tan/, where you can download the TAN form 49B. 

Fee And Payment Modes

A payment of Rs. 65 is required when applying for a new TAN, which comprises an application fee of Rs. 55 and an 18% Goods and Services Tax (GST) component. You have the option to make this payment using one of the following methods:

• Cheque
• Credit card
• Demand draft (DD)
• Netbanking
• Debit card

If you pay via cheque or demand draft (DD), it should be made payable to "NSDL-TIN," with the DD payable in Mumbai. You should deposit a local cheque at any HDFC Bank branch except the Dahej branch for cheque payments.

Individuals authorised to make the payment of the fee include:

Submission of TAN application

You can send the acknowledgement of your TAN application to this address:

NSDL e-Governance Infrastructure Limited 5th Floor, Mantri Sterling, Plot No.341, Survey No.997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016

After receiving the acknowledgement and paying the fee, the concerned authorities would process the TAN application and allot the TAN to the applicant. 
 

TAN Acknowledgment

After submitting your TAN application successfully, you must remember to send the duly signed acknowledgement slip to Protean eGov Technologies Limited at:

Protean eGov Technologies Limited
5th Floor, Mantri Sterling
Plot No.341, Survey No.997/8,
Model Colony
Near Deep Bungalow Chowk
Pune - 411016

It is crucial to send the acknowledgement form and the required documents to the above address within fifteen days of application to ensure smooth application processing. 
 

Benefits of TAN card

• The Income Tax Department provides a seamless channel for deductors to access information related to Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) by retrieving it from an up-to-date database of active TAN (Tax Deduction and Collection Account Number) details.
• A secure login section is available to all deductors, ensuring their authentication.
• Additionally, some features and advantages enable deductors to download the latest input file (FVU) for preparing correction statements and verifying the status of Challans online.
• Deductors can obtain a statement displaying the Tax Deducted status at Source (TDS).
• Uploading e-TDS returns online is a straightforward process for deductors.
• Reconciliation between Tax Deducted at Source (TDS) and TAN holders, particularly concerning Section 200A, is facilitated.
• Registration and verification processes are simplified with the use of a TAN number.
   

Conclusion

Individuals who must pay their taxes while residing in India must mandatorily apply for the TAN to obtain all the necessary details about their income tax returns. It is usual for individuals to get perplexed about the several steps involved in the application procedure because Form 49B meaning is indeed a complicated process. Therefore, to ensure a smooth and hassle-free application, this post has enlisted all the details one must remember to file Form 49B online TAN application seamlessly.