What is TAN number and how to apply for TAN number?

What is TAN number

TAN Number is a 10 Digit Alphanumeric Number and is used as an abbreviation for Tax Deduction and Collection Account Number.  Every Assessee liable to deduct TDS is required to apply for a TAN No. and shall quote this number in all TDS Returns, TDS Payments and any other communication regarding TDS with the  Income tax department.

As per Section 203A of the Income Tax Act 1961, it is mandatory for all asseesee’s liable to

deduct TDS to quote this TAN Number in all communications regarding TDS with the Income Tax Department and failure to do so attracts a  penalty of Rs. 10,000. TDS Returns and Payments would not be received by the Banks if TAN No. is not quoted.

How to apply for TAN number

 (a)  An applicant will fill Form 49B online and submit the form.

(b)  If there are any errors, rectify them and re-submit the form.

(c)  A confirmation screen with all the data filled by the applicant will be displayed.

(d)  The applicant may either edit or confirm the same.

Acknowledgment

(a)  On confirmation, an acknowledgment screen will be displayed. The acknowledgment consists of:

      *  A unique 14-digit acknowledgment number

      *  Status of applicant

      *  Name of applicant

      *  Contact details (address, e-mail and telephone number)

      *  Payment details

      *  Space for signature

(b)  Applicant shall save and print this acknowledgment.

(c)  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.

(d)  Left hand Thumb impression, if used, should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp.

Payment

(a)  The fee for processing TAN application is 62.00 ( 55.00 application charge + 12.36% Service Tax).

(b)  Payment can be made by

      -  demand draft or

      -  cheque or

      -  credit card / debit card or

      -  net banking

(c)  Demand draft / cheque shall be in favor of 'NSDL - TIN'.

(d)  Name of the applicant and the acknowledgment number should be mentioned on the reverse of the demand draft / cheque.

(e)  Demand draft shall be payable at Mumbai.

(f)  Applicants making 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. List of HDFC Bank Branches.

(g)  Credit Card / Debit Card / Net Banking payment

Facility of making payment by credit card / debit card / net banking is not available for below mentioned categories:

      -  Central Government / State Government and

      -  Statutory / Autonomous Bodies

Persons authorised to make credit card / debit card / net banking payment for other categories are as below:        

Category of applicant	Authorized person whose credit card / debit card / net banking can be used for making the payment
Company/Branch/Division of a company	Any Director of the Company
Individual (Sole Proprietorship) / Branch of individual business	Self
Hindu Undivided Family (HUF)	Karta
Firm / Branch of firm	Any partner of the firm
Association of Persons/Body of Individuals/ Association of Persons (Trusts)/Artificial Juridical Person	Authorized signatory covered under section 140 of Income Tax Act, 1961

           

Applicants making payment of application fee using credit card / debit card will be charged an additional charge of up to 2% (plus applicable taxes) of application fee by the bank providing payment gateway facility.         

Applicants making payment through Net Banking facility will be charged an additional surcharge of 4.00 + service tax for payment gateway facility.      

On successful payment by credit card / debit card / net banking an acknowledgment will be displayed. Applicant shall save and print the acknowledgment and send to NSDL as mentioned in section 'Submission of Documents' below.

Submission of Documents

(a) The acknowledgment duly signed, along with demand draft, if any, shall be sent to NSDL 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

(b)  Superscribe the envelope with 'APPLICATION FOR TAN - Acknowledgment Number' (e.g. 'APPLICATION TAN - 88301020000254').

(c)  Your acknowledgment and demand draft, if any, should reach NSDL within 15 days from the date of online application.

(d)  Application will be processed only on receipt of duly signed acknowledgment and realisation of payment.

http://companyformationindia.com

Requirements for a Private Limited Company?

A Registered Business Name: This must be followed by the word ‘Limited' or ‘Ltd'. The Companies Registration Office exercises some control over the choice of name, it cannot be identical (or very similar to) the name of an existing company. It won't be considered if it is offensive or illegal and the use of certain words in a company (for example, `Institute', `National') can only be used in certain circumstances. The company name must be displayed in a conspicuous place at every office, or other premises where the company carries out business.


A Registered Office: This need not necessarily be the same address as the business is conducted from. Quite frequently the address used for the registered office is that of the firm's solicitor or accountant. This is the address, through, where all official correspondence will go.


Shareholders: There must be a minimum of two shareholders (also described as `members' or `subscribers'). A private company can have up to fifty shareholders.


Share Capital: The company must be formed with a stated, nominal share capital divided into shares of fixed amounts. Small companies are frequently formed with a nominal share capital of Rs.100.

Memorandum of Association: The memorandum is the company's charter. It states the company's name; the situation of its registered office; its share capital; the fact that liability is limited and, most importantly, the object for which the company has been formed. In theory, the company can only operate in the areas mentioned in the objects clause but in practice the clause is drawn to cover as wide an area as possible, and anyway a 75 per cent majority of the members of the company can change the objects whenever they like. Nevertheless, it is worth bearing in mind that directors of the company will incur personal liability if the company engages in a type of business which is not authorised by the objects clause. The memorandum must be signed by at least three shareholders.


Articles of Association: The document contains the internal regulations of the company, the relationship of the company to its shareholders and the relationship between the individual shareholders. Many companies don't bother to draw up their own articles but adopt (sometimes with some modifications) articles set out in the Companies Act.


Certificate of Incorporation: This is the document, which the registrar of companies issues to you once he has approved your choice of name and your memorandum. When you receive this document your company legally exists and is ready to trade.


Auditors: The auditor's duty is to report to the treasurer whether or not the books of the company have been properly kept, and that the balance sheet and profit and loss account presents (or doesn't present) a true and fair view of the company's affairs and complies with the Companies Act. Auditors are appointed or re-appointed at general meetings at which annual accounts are presented, and they hold office from the conclusion of the meeting until the next general meeting.


Accounts: The Companies Act lays down strict rules on accounting. Every company must maintain a set of records, which show the financial position at any one time with reasonable accuracy. The accounts comprise a profit and loss account and balance sheet with the auditors' and directors' reports appended. A new company's accounting reference period begins on its incorporation and runs until the following 31st March - unless the company notifies the registrar of companies otherwise. Within ten months of the end of an accounting reference period, an audited set of accounts must be laid before the shareholders at a general meeting and a set delivered to the registrar of companies.


Registers, etc.: In addition to the accounts books, companies are required to have: a register of members and share ledger; a register of directors and secretaries; a register of share transfers; a register of charges; a register of debenture holders; a book can be purchased to hold all of the above. This will be provided automatically if you buy a running concern.


Company Seal: All companies must have an engraved seal. This must be impressed on share certificates and must be used whenever the company has to execute a deed. Again, this is included in the ready-made company package.

Procedure for registration of Digital Signature Certificate

1. The authorized signatory / Individual would log into the E-filing website- http://incometaxindiaefiling.gov.in using the Login particulars such as the userid and password of the company / firm / HUF / Individual etc.

2. Under “My Account” he would have to select -> Update Digital Certificate or register the DSC at the time of creating the user on e-filing website at the time of initial registration:

3. The taxpayer has to select the appropriate type of DSC (.pfx or USB token) and click on ‘Select Your .PFX File Certificate’.

At this stage, the Department would verify if the person holding the DSC matches the Director / Partner / Key Person in the Key Person Schedule of the Company (ITR-6) or Firm etc (ITR­5). If there is a match, i.e. the person registering the DSC is mentioned as a Director / Partner / Key Person, then the DSC would be registered against the Company / Firm / Entity PAN and the critical details such as the Sl no, Name etc would be stored. In this process, it is essential that at least one earlier I-T Return should have been filed by the Company / Firm / Entity so that the verification of key person is possible. In case an individual is registering the DSC for his own ITR (ITRs 1-4 case), then the email id as mentioned in the DSC should match the email id as per his registered profile in the efiling website.

Now, the I-T Return for the Individual/HUF/Company / Firm / Entity PAN can be signed using this registered DSC.

4. At the time of uploading the I-T Return of the Company / Firm / Entity PAN, if the DSC is used for signing the I-T Return, the Department verifies,

i. if the DSC is registered;

ii. that the unique Sl No of the DSC used to sign the I-T Return is the same as the unique Sl No of registered DSC; and,

iii. the PAN number of the Verifier (Authorized Signatory) as mentioned in the Verification portion of the I-T Return, is the same as that of the person bearing the registered DSC; or

iv. in case of ITRs 1-4, the Individual logged in is the same as the person bearing the registered DSC,

only then the I-T Return is permitted to be signed and uploaded.

Select ‘Submit return’-> ‘AY 2010-11’ for submitting I-T return for AY 2010-11 and then select ‘Do you want to Digitally Sign the file’ -> ‘Yes’.

Select appropriate type of DSC (.pfx or USB token) and click on ‘Next’ to proceed further to enter the DSC password and sign and upload the I-T return.

 

C             Amendment to Rule 12 – Making Digital Signature Mandatory for Companies

Vide notification dated 9^th July 2010 amending Rule 12, the CBDT has made it mandatory all Companies filing ITR-6 to digitally sign the I-T return for AY 2010-11. In the following scenarios, taxpayers may find it difficult to register the DSC as per the existing procedure as mentioned above:

1. Non-resident companies where the Directors are foreign nationals.
2. Companies where the I-T return is being filed for the first time
3. Companies where the Managing Director has changed and other Directors are either unavailable or also have changed.

In all such cases it is difficult to verify the identity of the person and his relationship with the Entity for which he is the authorized signatory. With a view to make registration simpler in such cases, the procedure has been changed to enable registration of a DSC where the PAN is also provided in the DSC as per the latest Interoperability guidelines issued by the Chief Controller of Certifying Authorities. Such DSCs with encrypted value of PAN are now available in the market.

Refer to the new guidelines for DSC Interoperability issued by the CCA, Government of India in http://cca.gov.in/rw/resource/dsc guidelines r2.pdf?download=true wherein the Permanent Account Number (PAN) has been included in an encrypted format as an attribute (Page 50).

D.           Changes in the process of Registration of DSC

In view of the above, a change is made in the registration process (as compared to sub-para 3 in para B above) for DSC as under:

Modified sub-para 3 of para B. The Authorized Signatory has the option-

i. To select existing procedure to register the DSC, in case the scenarios mentioned in sub­paras 1, 2, or 3 in para C above are not applicable (the Authorized Signatory details must be already available in the previously filed I-T return of the Company/Firm/Entity, in which case he can continue to use his existing DSC issued prior to 01/08/2010); or

ii. To select new procedure as given below:

a. The Authorized Signatory must use a fresh DSC having encrypted value of his PAN, as issued by Certifying Authorities with effect from 01/08/2010.

b. Enter Authorized Signatory’s PAN number while registering the DSC. The same person must also enter the same PAN in the Verification portion of the I-T Return which he is signing in his capacity as Director/ Partner/Karta/Authorized Signatory.

c. If the Authorized Signatory PAN number matches the encrypted value of the PAN present in the DSC – then the DSC will be registered after selecting the appropriate type of DSC (.pfx or USB token) and clicking on ‘Select Your .PFX File Certificate’.

d. In case of an Individual is registering his DSC for submitting own ITR (ITRs 1-4 case) then his PAN as per his login should match the encrypted PAN contained in the DSC- then the DSC will be registered after selecting the appropriate type of DSC (.pfx or USB token) and clicking on ‘Select Your .PFX File Certificate’.

e. Now, the I-T Return for the Self / Company / Firm / Entity PAN can be signed using this registered DSC.

The I-T Return upload process remains the same. If the DSC is used for signing the I-T Return, the Department verifies,

i. if the DSC is registered and in case DSC has been updated the DSC being used is the latest DSC registered;

ii. that the unique Sl No of the DSC used to sign the I-T Return is the same as the unique Sl No of registered DSC; and,

iii. the PAN number of the Verifier (Authorized Signatory) as mentioned in the Verification portion of the I-T Return, is the same as that of the person bearing the registered DSC; or

iv. in case of ITRs 1-4 the Individual logged in is the same as the person bearing the registered DSC,

only then the I-T Return is permitted to be signed and uploaded.

  For more details:-

http://www.companyformationindia.com/director-identification-number.html