Form No 49b See Form Of Application For Allotment Of Tax: Fill & Download for Free

Income tax is one of the most scary and complex topics for a lot of individuals. The calculation of tax and various terms associated with it make it difficult to grasp. TAN and TIN are two such terms that confuse a lot of people. Both these terms are relevant with respect to filing of tax in any financial year. Let us look into the definitions of TIN and TAN and see how are these two different.What is TAN?TAN is short-form for Tax Deduction and Collection Account Number. TAN is a unique ten-character code that is assigned to entities that are eligible for collecting TDS or tax on behalf of the Income Tax Department. TAN is required for furnishing TDS details collected by any entity. Examples of such entity include corporates, offices that deduct tax on behalf of tax department.TAN is mandatory for such entities under section 203A of the Income Tax Act , 1961 and not quoting the same while filing TDS is subject to a penalty of Rs.10,000 as per section 272BB of the act.As for PAN, TAN also can be applied either offline or online at the NSDL or UTITSL website. For offline application, form 49B needs to be filled and submitted at any of the TIN facilitation centers across the country. Online application of TAN can be made at the UTITSL or NSDL websites which are facilitation partners for the Income Tax Department for furnishing of TAN.What is TIN?TIN or Tax Identification Number is a unique 11 character identification number that is allotted to all taxpayers registered under VAT for sale of goods and services. Like individuals, all business enterprises too are required to file their taxes. The way PAN is required for any tax transaction handled by individuals, TIN is required by business enterprises. Quoting of TIN is mandatory for filing of taxes by a business enterprise. Failing to do so may attract penalty similar to how it is done for PAN.TIN is used for transactions within a state or those between two or more states. Similar to TAN, TIN also can be applied either offline via TIN facilitation centers or through online platform TIN-NSDL which acts on behalf of the Income Tax Department of India.Major Points of Difference between TIN and TAN:PARAMETERTANTINIssuing AgencyIncome Tax Department of IndiaCommercial Tax Department of the applicant’s statePurposeStreamline deduction and collection of tax at sourceTrack VAT related activities in the countryForm to be used for ApplicationForm 49BForms vary for different statesCode typeAlphanumeric code of 10 characters11 digit numeric code (where the first 2 digits signify the state of the applicant)Structure of CodeTAN is composed of 4 alphabets, followed by 5 numbers, with an alphabet as the last characterTIN is composed of 11 digits onlyWho should have itAny entity that is eligible to deduct TDS on behalf of the Income Tax DepartmentAny enterprise that is liable to pay Value Added Tax or VATSections of IT Act which account for itSection 203A of Income Tax Act of 1961Different states have different Acts under which TIN is applicableFines/Penalties ApplicablePenalty of Rs. 10,000 may be leviedPenalties vary according to stateDocuments Required to ApplyNone. Only form 49B needs to be filled and submittedProof of registration, PAN, ID proof of owner, etc. (documents may vary depending on state)Maximum number of TAN/TIN that can be owned by an entityOneOneCost of ApplicationRs.55 plus service taxVaries according to state

There are differences between the Tax Deduction and Collection Account Number (TAN) and Tax Identification Number (TIN). Both are important when filing of income tax returns. There are some important differences between both.Income tax is one of the most scary and complex topics for a lot of individuals. The calculation of tax and various terms associated with it make it difficult to grasp. TAN and TIN are two such terms that confuse a lot of people. Both these terms are relevant with respect to filing of tax in any financial year. Let us look into the definitions of TIN and TAN and see how are these two different.WHAT IS TAN?TAN is short-form for Tax Deduction and Collection Account Number. TAN is a unique ten-character code that is assigned to entities that are eligible for collecting TDS or tax on behalf of the Income Tax Department. TAN is required for furnishing TDS details collected by any entity. Examples of such entity include corporates, offices that deduct tax on behalf of tax department.TAN is mandatory for such entities under section 203A of the Income Tax Act , 1961 and not quoting the same while filing TDS is subject to a penalty of Rs.10,000 as per section 272BB of the act.As for PAN, TAN also can be applied either offline or online at the NSDL or UTITSL website. For offline application, form 49B needs to be filled and submitted at any of the TIN facilitation centers across the country. Online application of TAN can be made at the UTITSL or NSDL websites which are facilitation partners for the Income Tax Department for furnishing of TAN.WHAT IS TIN?TIN or Tax Identification Number is a unique 11 character identification number that is allotted to all taxpayers registered under VAT for sale of goods and services. Like individuals, all business enterprises too are required to file their taxes. The way PAN is required for any tax transaction handled by individuals, TIN is required by business enterprises. Quoting of TIN is mandatory for filing of taxes by a business enterprise. Failing to do so may attract penalty similar to how it is done for PAN.TIN is used for transactions within a state or those between two or more states. Similar to TAN, TIN also can be applied either offline via TIN facilitation centers or through online platform TIN-NSDL which acts on behalf of the Income Tax Department of India.Bibliography: Difference between TIN and TAN - Check Major PointsCheers!