Introduction
There may be a time when you need to surrender or cancel your Tax Deduction and Collection Account Number (TAN) if you are a taxpayer and obtained it from National Securities Depository Limited. (NSDL). Knowing how to surrender or cancel your TAN is crucial, regardless of whether you have stopped your business operations, combined your accounts, or no longer have your TAN number required for any other reason. Here we will delve into the procedure of surrendering a TAN number online and understand how to cancel a TAN application. By following these procedures, you can make sure that TAN is successfully surrendered or canceled, simplifying your taxation process and preventing unnecessary complications.
What does the TAN application mean?
The TAN application can refer to the process of applying for TAN (Tax Deduction and Collection Account Number). In India, NSDL (National Securities Depository Limited) issues a unique alphanumeric code known as TAN. For various tax-related operations, including the deduction and remittance of tax deducted at source (TDS), this ten-digit number is required.
What are the reasons for surrendering the TAN application?
There are two scenarios where TAN applications may be canceled or surrendered.
Instance 1: If a duplicate TAN is issued
In the first scenario, the deductor needs to contact the NSDL and request that they cancel the "Duplicate Unsed TAN." This can be done by using the "Changes and Corrections to the TAN application." This is available for download through the NSDL website, and the same is available through the TIN-FC and other suppliers.TAN applications online as well as paper applications are accepted. With this, "Duplicate TAN" can be terminated.
Instance 2: When the designated TAN is no longer needed by the assessee or deductor
In the second scenario, for the cancellation of the TAN, the deductor must send a written request to the Jurisdictional Authority (TDS) along with supporting documents.
How do you surrender or cancel your TAN?
1. Understand the Guidelines
It's important to go over the guidelines issued by the Income Tax Department before surrendering or canceling your TAN. Thoroughly analyze the precise guidelines and procedures so that you can ensure compliance and avoid legal problems or potential penalties.
2. Be prepared with the required documents.
Gather all the required documents needed to surrender or cancel your TAN. This usually includes the original TAN allotment letter, proof of identity, and address verification, as well as any additional supporting documentation specified by the Income Tax Department.
3. Notify relevant authorities.
Let the relevant authorities know that you intend to surrender or cancel your TAN. To prevent any further tax deductions or remittances, this includes informing your employer, clients, or any other deductor or collector of taxes related to your TAN—of the taxes linked with your TAN.
4. Complete the application form.
Get the application for TAN surrender or cancellation at the Income Tax Department's official website or via approved channels. Provide accurate information on the form, including the current TAN number, the reasons for surrender or cancellation, and any other relevant details.
5. Application Form Submission
After completing the form, send it to the relevant income tax office or authorized center along with the necessary supporting documentation. Make sure that the information provided is accurate and that the documents have been properly attested if required.
6. Follow-up and confirmation
After submitting your application, to monitor the status of your request, it is recommended that you get in contact with the Income Tax Department.They can require additional data or supporting documents while the evaluation is being conducted. You will receive a confirmation letter or notification from the Income Tax Department once the surrender or cancellation is processed and approved.
Conclusion
Surrendering or canceling the TAN application is crucial when it becomes necessary due to business changes. You may guarantee a smooth process and continue to comply with tax laws by adhering to the appropriate method as specified by the Income Tax Department. Follow the instructions, collect the required documents, notify the relevant authorities, accurately complete the application, and submit it to the approved authorities. By following the above procedure, you can successfully surrender or cancel your TAN and avoid unnecessary penalties or issues.
The author is the operations director and co-founder of Ebizfiling India Private Limited, has 13+ years of rich and profound experience with various corporate sectors, and has led teams of 50+ professionals. In due process, I gained vast knowledge of all the areas of Indian statutory compliance, which include laws and taxation. She can also be reached at info@ebizfiling.com.
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