Tax Deduction and Collection Account Number (TDCAN)

• Applicable Section/Rules/Forms

  • Section Section 203A,

  • Rules Rule 114A, (Rule 114AA has been redundant w.e.f. 8-12-2004 upon introduction of substituted Rule 114A for TDCAN.)

  • Form: `Form No. 49B and INC -7, (Under Companies Act 2013).

• Common 10 digit Alphanumeric Number is allotted for both Tax Deduction and / or Collection.

• Application to be made within one month from the end of the month in which tax is deducted or collected. Tax deducted or collected cannot be deposited without TDCAN. Hence TDCAN need to be obtained before latest date by which tax deducted or collected is required to be deposited.

• Persons who have been earlier allotted TAN/TCS (ten digits) are not again required to apply for TDCAN.

• Every deductor / collector (including DDO from Government Departments) are required to obtain TDCAN.

• Every deductor / collector can have only one TDCAN, but different branches/divisions of a deductor / collector may apply for separate TDCAN for each branch/division.

• Applicable Section, Rules and Form: Section 203A, Rule 114A, Form No. 49B and INC -7, (Under Companies Act 2013). Rule 114AA has been redundant w.e.f. 8-12-2004 upon introduction of substituted Rule 114A for TDCAN.

TDCAN Allotment process

• Allotment of TDCAN is partly outsourced.

• Application is to be made to undermentioned authorities through TIN facilitation centres.

  • Assessing Officer as may be assigned by the Principal Chief Commissioner / Principal Commissioner / Chief Commissioner / Commissioner, with the function for allotment of TDCAN, or

  • Jurisdictional Assessing Officer

• On receipt of application, NSDL would forward it to Income Tax Department (ITD) in digitised form.

• Income Tax Department (ITD) would then allot TDCAN and intimate to NSDL electronically.

• Post receipt of information, NSDL issues the TDCAN letter to the applicant.

• Deductors can search TDCAN on www.incometaxindia.gov.in under the tab “Know your TAN”.

Application

• Application for the allotment of TDCAN, to be made in Form No. 49B.

• Application can be either submitted online or through NSDL to the designated Assessing Officer (TDS/TCS) having jurisdiction to assess the applicant.

• New Companies at the time of registration can apply for TAN in Form INC-7 w.e.f. 10-4-2015. However in such case, the Form INC-7 needs to be uploaded at e-Biz website www.ebiz.gov.in. This facility is applicable only in case of TAN of head office.

• Online application can be made at www.tin-nsdl.com.

• In case change in any of the particulars submitted at the time of furnishing original application, amendment application is required to be made in "Application for Changes or Correction in TAN Data for TAN allotted". However in case the applicant's address changes to a different city and the new address falls under different Regional Computer Centre of ITD, applicant needs to apply for a new TDCAN and can apply for cancellation of old TDCAN.

Requirements

• Physical application

  • Application should be filled in black ink.

  • Physical copy of application can be submitted at any of the TIN facilitation centres.

• Online application

  • Where application is submitted online, duly signed printed copy of the acknowledgment generated online is required to be submitted to NSDL within 15 days from the date of online application.

  • The printed acknowledgment is required to be submitted at NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016. Envelope is required to be superscribed as ‘APPLICATION FOR TAN – Acknowledgment Number’ e.g. ‘APPLICATION TAN - 88301020000260’.

  • On-line filed application would be processed only on receipt of signed acknowledgment and realisation of payment.

• Other

  • Application should be complete in all respects, including details of AO (TDS/TCS).

  • Address of the applicant has to be Indian address only.

  • Signature/left thumb impression should only be within the box provided in the acknowledgment. In case of applicants other than 'individuals', the authorised signatory shall sign the acknowledgment and affix the appropriate seal or stamp. In case application is signed using a left hand thumb impression, it should be attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.

  • No documents are required to be attached along with TDCAN. However in case of "Application for Changes or Correction in TAN Data for TAN allotted" outsource agency insists for copy of existing TDCAN (copy of TDCAN allotment letter or in absence of TDCAN letter, applicant can submit a printout of TDCAN details using TAN search facility provided at www.tin-nsdl.com or www.incometaxindia.gov.in), documentary evidence in respect to changes or corrections.

  • On submission of the application, acknowledgment containing a 14-digit unique number is issued.

  • Application can be tracked online or through mobile using unique number. (SMS NSDLTAN < space > acknowledgment no. & send to 57575).

Processing Fees

• ₹ 63 (₹ 55 application charge+14.50% service tax) is charged towards processing of all types of application.

• Additional surcharge of ₹ 4 (plus service tax) is charged where payment is through Net Banking facility.

• Additional surcharge of ₹ 2% (plus applicable taxes) is charged where payment is made by debit card/credit card.

• Online application payment can be made by:

  • Demand draft or

  • Cheque or

  • Credit /debit card or

  • Net banking

• Demand draft/cheque shall be in favour of ‘NSDL-TIN’ and payable at Mumbai.

• Payment by cheque shall deposit a local cheque (drawn on any bank) with any HDFC Bank branch across the country (except Dahej). The applicant shall mention TANNSDL on the deposit slip.

• Applicant’s name and the acknowledgment number should be mentioned on the reverse of the demand draft/cheque.

• Persons other than Central Government, State Government and Statutory, Autonomous Bodies are allowed to make payment by credit card/debit card/net banking. But such card or account of authorised persons only as under:

Cancellation of TDCAN

Cancellation of TDCAN can happen under two circumstances:

1. Duplicate TDCAN

2. TDCAN no more required

Process of cancellation

• For cancellation of duplicate & unused TDCAN, application to be made to ITD through NSDL in "Application for Changes or Correction in TAN Data for TAN allotted".

• For cancellation of "TDCAN if no more required" application to be made on plain paper before jurisdictional Assessing Officer (TDS), along with the reasons for such request. However A.O. to proceed only after verifying genuineness of the application and authenticity of the person making application.

Responsibility of person deducting/collecting tax

TDCAN to be quoted in all

• Challans

• TDS/TCS certificates

• Return or statements of TDS/TCS

• All such other documents pertaining to such transactions as may be prescribed. (No documents has been prescribed till now).

Penalty

Penalty u/s. 272BB of ₹ 10,000 may be levied in case of each default of:

• Not applying or applying belatedly for allotment of TDCAN,

• Non-quoting of TDCAN, or

• Quoting TDCAN which person believes to be incorrect.