Surrender of TAN
Tax Deduction and Collection Account Number (TAN) is a unique 10-character alphanumeric code issued by the Income Tax Department of India. It is mandatory for entities responsible for deducting or collecting tax at source (TDS/TCS). However, in some situations, such as the cessation of business or the absence of a future requirement for TDS/TCS, an entity may need to surrender its TAN.
When to Surrender TAN
TAN surrender is applicable under the following circumstances:
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Closure of Business: If the entity ceases operations permanently.
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Duplicate TAN: When multiple TANs are inadvertently obtained by the same entity.
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No Future TDS/TCS Obligations: If TDS or TCS deduction/collection is no longer applicable to the entity.
Process of surrender of TAN
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Prepare an Application for TAN Surrender
Draft an application addressed to the Income Tax Officer (TDS), providing details such as:
2. Documents to be submitted along with the application
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Proof of TAN( existing TAN i.e. the one currently in use).
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Proof of TANs to be surrendered/cancelled, if any.
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Applicant may submit the TAN allotment letter received from ITD as proof of TAN. In case the applicant does not have TAN allotment letter, he can submit a printout of his TAN details using TAN search facility provided at www.incometaxindia.gov.in or www.protean-tinpan.com
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Relevant documentary proof to support request for correction/change in TAN change request to be forwaded to Protean along with TAN acknowledgment.
The address of applicant should be an Indian address only.
3. Submit the Application
The application can be submitted either:
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Offline: Submit the application to the jurisdictional TDS Assessing Officer.
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Online: Application for cancellation of TAN online is to be made in the “Form for changes or correction in TAN” which can be downloaded from the website of Protean(http://www.protean-tinpan.com/) or obtained from any other source. The application is also available at TIN Facilitation Centres.
4. Follow-up
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After submission, keep track of the acknowledgment number.
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Once the application is processed, you will receive confirmation of TAN surrender.
Conclusion
Surrendering a TAN is a straightforward process, but it requires careful compliance with all pending TDS/TCS obligations. Whether it’s due to business closure or duplicate issuance, following the correct procedure ensures that there are no complications in the future. Entities should ensure that all required documentation is in place and reach out to their jurisdictional TDS office or use the TRACES portal for a smooth process. |