Changing TAN

Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric number issued by the Income Tax Department of India. It is mandatory for entities required to deduct or collect tax at source (TDS/TCS). Sometimes, businesses or individuals may need to change or update their TAN details due to various reasons, such as changes in the organization name, address, or nature of operations.

Changing or updating TAN information ensures compliance with tax laws and avoids penalties for incorrect or outdated records.

Reasons for Changing TAN

1. Change in Address:

   • Relocation of the entity to a new office or branch.

2. Change in Name:

   • Update required for name changes in companies, individuals, or organizations.

3. Correction of Errors:

   • Fixing mistakes in the original TAN application, such as spelling errors or incorrect details.

4. Change in Jurisdiction:

   • Business shift to a different tax jurisdiction or circle.

5. Nature of Business Change:

   • Update required if the nature of the entity’s business changes.

6. Merger or Acquisition:

   • Updating TAN for merged entities or new entities post-acquisition.

Process for Changing TAN in India

1. Download the TAN Correction Form:

   • Obtain Form 49B for TAN correction or change from the NSDL (National Securities Depository Limited) website.

2. Fill in the Form:

   • Provide accurate details, including the existing TAN, updated information, and the reason for changes.

3. Attach Supporting Documents:

   • Submit documents verifying the changes, such as address proof, name change certificates, or merger/acquisition agreements.

4. Payment of Fees:

   • Pay the applicable fees for processing the TAN change application.

5. Submit the Form:

   • Send the completed form and supporting documents to the nearest NSDL office or submit it online.

6. Acknowledgment Receipt:

   • Upon submission, you will receive an acknowledgment number for tracking the status of your application.

7. Verification and Processing:

   • The Income Tax Department verifies the application and updates the TAN details in its database.

8. Receive Updated TAN:

   • The updated TAN details are communicated to the applicant through email or post.

Important Points to Note

1. Mandatory for TDS/TCS Filings:

   • Updating TAN ensures uninterrupted TDS/TCS filing and avoids penalties.

2. Separate TANs for Different Branches:

   • If an organization has multiple branches, a separate TAN must be applied for each location, if required.

3. Penalty for Non-Compliance:

   • Failure to update TAN details can result in penalties under Section 272BB of the Income Tax Act.

4. Timeframe:

   • TAN correction or changes usually take 15–20 business days to process.

5. Use of Same TAN for Updates:

   • The existing TAN remains valid; only the associated details are updated.

Documents Required for TAN Change

1. Proof of address (e.g., utility bills, rental agreements).
2. Proof of name change (e.g., incorporation certificate, gazette notification).
3. Old TAN allotment letter (if available).
4. Proof of business merger or acquisition, if applicable.
5. Any other documents requested by the NSDL.

Where to Apply for TAN Changes

1. Online:

   • Through the NSDL website (www.tin-nsdl.com).

2. Offline:

   • Submit the application at the nearest NSDL TIN Facilitation Center.

Benefits of Updating TAN

1. Compliance with Tax Laws:

   • Ensures compliance with the Income Tax Act and prevents legal complications.

2. Smooth Operations:

   • Avoids disruptions in TDS/TCS filings and refunds.

3. Avoid Penalties:

   • Prevents penalties for incorrect TAN details.

4. Enhanced Credibility:

   • Accurate records enhance trust with stakeholders, employees, and tax authorities.

5. Timely Refunds:

   • Accurate TAN details expedite the processing of TDS refunds.