Withholding Tax in India

Any payer deducting an amount directly from its payee’s earning is referred to as Withholding tax. By law, the payer is obliged to deduct the amount at the time of making the payment on account of a Non-Resident Individual. Let’s learn about withholding taxes in further detail.

What is Withholding tax

Withholding tax is similar to Tax Deducted at Source (TDS). Withholding tax also known as retention tax is another terminology used for TDS. It is deducted by the payer directly from its payee’s earning. This tax is then deposited as part of the Non- resident individual’s tax liability to the Central government of India. The central government of India is an official body to levy and collect taxes.

For better understanding, TDS has to be paid by Residents, and withholding tax is to be paid by Non-resident individuals only on income earned in India.

Example: Mr. Rohan is an NRI and is working as a freelancer with Mr. Shah & Co. in India. Mr. Rohan has earned INR 95000 by providing his services. Now, while making the payment Mr. Shah & Co. will credit INR 90000 to Mr. Rohan’s account and deduct INR 5000 as withholding tax.

Rates of Withholding tax in India

Following are the rates applicable for Non- Resident Indian individuals:

  • 20% Interest rate is applicable for dividends paid by domestic companies
  • 10% rate is applicable for technical services are charged
  • 10% rate is applicable for other services
  • Individuals are charged 30% rate of the Income
  • Companies are charged 40% rate of the Income
  • No tax charged for royalties

Note: The above stated rates are applicable on those countries with whom India does not have a double taxation avoidance agreement.

Process of doing an assessment for Non-resident Indians

Assessment of Non- Resident Indians can be done by an agent or even directly. A person who is considered as ‘agent‘ of a non-resident assessee is as under:

  • Employee or trustee of a Non-resident Indian
  • Any individual who has any business connection with a Non-resident
  • Any person through whom a Non-resident is receiving any income
  • Any person who has acquired or purchased any capital asset in India from a Non-resident.

Due date of Filing returns

The returns for withholding of tax are filed quarterly, and it includes details about every payee and amount deducted for that particular quarter.

Following are the dates of filing the returns for every quarter:

Quarter Months Due Dates
Q1 April – June July 15th, 2021
Q2 July – September October 15th, 2021
Q3 October – December January 15th, 2021
Q4 January – March  May 15th, 2021

Due date of depositing payment

Following are the due dates of making payments of withholding tax:

Month End of Quarter Withholding Tax Payments Due Date – Government  Withholding Tax Payments Due Date – Non- Government 
January 31st March 7th February 7th February
February 31st March 7th March 7th March
March 31st March 7th April 30th April
April 30th June 7th May 7th May
May 30th June 7th June 7th June
June 30th June 7th July 7th July
July 30th September 7th August 7th August
August 30th September 7th September  7th September 
September 30th September 7th October 7th October
October 31st December 7th November 7th November
November 31st December 7th December 7th December
December 31st December 7th January 7th January

FAQs

What is the difference between TDS and withholding tax?

TDS is applicable while making payments to Indian Citizens while Withholding tax is applicable while making payments to foreign individuals.

What is the rate of withholding tax in India?

Following are the rates applicable for Non- Resident Indian individuals:
1. 20% Interest rate is applicable for dividends paid by domestic companies
2. 10% rate is applicable for technical services are charged
3. 10% rate is applicable for other services
4. Individuals are charged a 30% rate of the Income
5. Companies are charged 40% rat of the Income
6 . No tax charged for royalties

When should I make payment for withholding tax?

Withholding tax payment has to be done on the 7th of every month. While returns are to be filed within 30 days from the ending of every quarter.

Latest TDS and TCS Rate Chart for FY 2020-21

TDS Rate Chart

TDS is nothing but an early collection of tax. It needs to be deducted on a specific payment at a prescribed rate by the payer/deductor. Deductor is a person who is liable to deduct TDS before making payment to a deductee. Let’s take a look at the TDS Rates for FY 2020-21. In this article, we take a closer look at the TDS rate chart.

Finance Minister confirms TDS Rates applicable for the coming Financial year in every Budget. During the year 2020, there was Covid-19 induced distress. In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation, the government announced various relief measures on 13 May 2020 through a press release. One of them was a reduction in TDS Rates for FY 2020-21 on non-salaried payments.

The TDS Payments can be divided into 3 sections as TDS on:

  1. Salary Payments
  2. Non-Salary Payments.
  3. Applicable to Non-Residents
TDS Return (24Q) for Salary Payments (Quarterly)
CA Assisted TDS return filing of one quarter for startups, companies and partnership firms making salary payments.
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TDS Return (24Q) for Salary Payments (Quarterly)
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TDS on Salary Payments

As per Section 192 of the Income-tax Act, the employer needs to deduct TDS on salary payment. Employer/Deductor needs to deposit TDS deducted on salary before the 7th of the next month (30th April for the month of March). The employer has to file TDS Return in FORM 24Q.

Due to Covid-19, the government announced a reduction in TDS Rates on Non-Salaried payments on 13 May 2020.
However, there has been no reduction in the TDS Rate of Section 192 TDS on Salary Payments. Therefore, regular slab rate shall be applicable to the employee based on the slab he/she falls in.
Tip
Due to Covid-19, the government announced a reduction in TDS Rates on Non-Salaried payments on 13 May 2020.
However, there has been no reduction in the TDS Rate of Section 192 TDS on Salary Payments. Therefore, regular slab rate shall be applicable to the employee based on the slab he/she falls in.

TDS on Non-Salary Payments

TDS on payments other than Salary depends upon the nature of Payment. Some common payments which feature the TDS system of taxation include commission, FD interest, rent, etc. TDS on different payments and their applicable rates are notified by the Income Tax Act, 1961. For payments other than salary deductor has to file TDS Return Form 26Q.

TDS Return (26Q) for Non-Salary Payments (Quarterly)
CA Assisted TDS return filing for employers, firms and companies making payment of Professional fees, Rent, Contracts, Commission, etc.
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TDS Return (26Q) for Non-Salary Payments (Quarterly)
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In a press release, Finance Minister Nirmala Sitharam as part of the Covid-19 package to revive the economy declared that the TDS rates for all non-salaried payment to residents, and TCS rates will be slashed by 25 percent of the specified rates for the remaining period of FY 2020-21. These rates shall be applicable for the period starting from 14th May 2020 to 31st March 2021.

TDS Rate Chart and sections applicable to Individual/HUF

Given below is the TDS rate chart:

Section

Nature of Payment

Threshold Limit (INR)

Existing Rates

TDS Rates From 14/05/2020    to          31-03-2021

193 Interest on Securities 5000 10% 7.5%
194 Dividend 2500 10% 7.5%
194A Interest other than Interest on Securities 5000 10% 7..5%
194C Payment of contractors and sub-contractors 100000 1% 0.75%
194D Insurance Commission 15000 5% 3.75%
194DA Payment in respect of Life Insurance Policy 100000 1% 0.75%
194EE Payments in respect of
deposits under National
Savings Scheme
2500 10% 7.5%
194F Payments on account
of re-purchase of Units
by Mutual Funds or UTI
20% 15%
194G Commission, prize, etc. on sale of lottery tickets 15000 5% 3.75%
194H Commission or brokerage 15000 5% 3.75%
194-I(a) Rent for Plant and Machinery 240000 2% 1.5%
194-I(b) Rent for immovable property 240000 10% 7.5%
194-IA Payment for acquisition of immovable property 5000000 1% 0.75%
194-IB Payment of Rent 180000 5% 3.75%
194-IC Payment for Joint Development Agreements 10% 7.5%
194J Fee for Professional or
Technical Services
(FTS), Royalty, etc.
30000 2% (FTS, certain
royalties, call
center)
10% (others)
1.5% (FTS, certain
royalties, call
center)
7.5% (others)
194K Payment of Dividend by Mutual Funds 5000 10% 7.5%
194LA Payment of compensation on acquisition of immovable property

250000

10% 7.5%
194LBA(1) Payment of income by business trust  – 10% 7.5%
194LBB(i) Payment of income by investment fund  – 10% 7.5%
194LBC(1) Income by Securitisation Fund  – 25% 18.75%
194M Payment to
commission, brokerage
etc. by Individual/HUF
 – 5% 3.75%
194-O TDS on e-commerce
participants
 –

1%  (w.e.f 01-10-2020)

0.75%

Note: No Reduction in rate of TDS where the tax is required to be deducted at higher rate due to non furnishing of PAN.

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TDS Rate Chart and sections applicable to Others

Section

Nature of Payment

Threshold Limit (INR)

Existing Rates

TDS Rates From 14/05/2020    to          31-03-2021

193 Interest on Securities 5000 10% 7.5%
194 Dividend 2500 10% 7.5%
194A Interest other than Interest on Securities 5000 10% 7..5%
194C Payment of contractors and sub-contractors 100000 2% 1.5%
194D Insurance Commission 15000 5% 3.75%
194DA Payment in respect of Life Insurance Policy 100000 1% 0.75%
194EE Payments in respect of
deposits under National
Savings Scheme
2500 10% 7.5%
194F Payments on account
of re-purchase of Units
by Mutual Funds or UTI
20% 15%
194G Commission, prize, etc. on sale of lottery tickets 15000 5% 3.75%
194H Commission or brokerage 15000 5% 3.75%
194-I(a) Rent for Plant and Machinery 240000 2% 1.5%
194-I(b) Rent for immovable property 240000 10% 7.5%
194-IA Payment for acquisition of immovable property 5000000 1% 0.75%
194-IB Payment of Rent 180000 5% 3.75%
194-IC Payment for Joint Development Agreements 10% 7.5%
194J Fee for Professional or
Technical Services
(FTS), Royalty, etc.
30000 2% (FTS, certain
royalties, call
center)
10% (others)
1.5% (FTS, certain
royalties, call
center)
7.5% (others)
194K Payment of Dividend by Mutual Funds 5000 10% 7.5%
194LA Payment of compensation on acquisition of immovable property

250000

10% 7.5%
194LBA(1) Payment of income by business trust –  10% 7.5%
194LBB(i) Payment of income by investment fund  – 10% 7.5%
194LBC(1) Income by Securitisation Fund  – 30% 22.5%
194M Payment to
commission, brokerage
etc. by Individual/HUF
 – 5% 3.75%
194-O TDS on e-commerce
participants
 –

1%  (w.e.f 01-10-2020)

0.75%

TCS Rate Chart for AY 2020-21 and AY 2021-22

The below table consists of the TCS rate charts from AY 2020-21 and 2021-22. The Finance Minister has made various changes in TDS provisions in the Finance Act, 2020. She also introduced two new sub-section such as section 206C(1G) and 206C(1H) which provides TCS on foreign remittance through Liberalised Remittance Scheme (LRS) and on selling of overseas tour package TDS as well as TCS on sale of goods over a limit.

TCS Rate Chart

Section Particulars TCS Rates  (AY 2020-21) TCS Rates  (Upto 13th May, 2020) TCS Rates (From 14th May, 2020 to 31st March, 2021)
206C(1) Sale of the following:      
  a) Alcoholic Liquor for Human Consumption 1% 1% 1% (No Change)
  b) Tendu leaves 5% 5% 3.75%
  c) Timber obtained under a forest lease 2.5% 2.5% 1.875%
  d) Timber obtained by any mode other than under a forest lease 2.5% 2.5% 1.875%
  e) Any other forest produce not being timber or tendu leaves 2.5% 2.5% 1.875%
  f) Scrap 1% 1% 0.75%
  g) Minerals, being coal or lignite or iron ore 1% 1% 0.75%
206C(1C) Grant of lease or license of the following:      
  a) Parking lot 2% 2% 1.5%
  b) Toll Plaza 2% 2% 1.5%
  c) Mining and quarrying (Other than mining and quarrying of mineral oil, petroleum and natural gas) 2% 2% 1.5%
206C(1F) Sale of the motor vehicle of the value exceeding Rs. 10 lakh whether payment is received by cheque or by any other mode 1% 1% 0.75%
206C(1G)(a) TCS on foreign remittance through Liberalised Remittance Scheme (LRS)

 

(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020)

(Please refer Note 1 for in depth explanation of this new section)

NA 0.5%: Where
remittance is a repayment of loan obtained for the
purpose of
pursuing any
education.5% In any other
case.(wef 01.10.2020)

 

(10% for non PAN or Aadhaar cases)

(W.e.f. 01/10/2020)

0.5%: Where
remittance is a repayment of loan obtained for the
purpose of
pursuing any
education.5% In any other
case.(wef 01.10.2020)

 

(10% for non PAN or Aadhaar cases)

(W.e.f. 01/10/2020)

206C(1G)(b) TCS on selling of overseas tour package

 

(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020)

(Please refer Note 2 for in depth explanation of this new section)

NA 5%

 

(10% for non PAN or Aadhaar cases)

(W.e.f. 01/10/2020)

5%

 

(10% for non PAN or Aadhaar cases)

(W.e.f. 01/10/2020)

206C(1H) TCS on sale of any goods [except goods on which TCS applicable as per Section 206C (1), 206C (1F) and 206C (1G)]

 

(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020)

(Please refer Note 3 for in depth explanation of this new section)

NA 0.10%

 

(1% for non PAN or Aadhaar cases)

(W.e.f. 01/10/2020)

0.075%

 

(1% for non PAN or Aadhaar cases)

(W.e.f. 01/10/2020)

TDS on payments to Non-Resident

Tds u/s 195 is deducted on payments to be made to Non-Resident. There is no threshold limit under section 195 of the Income Tax Act, hence TDS will be deducted from the entire income/amount. TDS shall be deducted at the time of making payment. Form 27Q is required to be submitted on quarterly basis on or before the due date on payments other than salary made to NRI. 

Due to Covid-19, there has been a reduction in TDS Rates. However, there has been no reduction in the TDS Rates of Section 195. Therefore, TDS u/s 195 shall be deducted at the same existing rates.

TDS Return (27Q) for NRI Payments (Quarterly)
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FAQs

At what rate the payer will deduct tax if I do not furnish my Permanent Account Number to him?

As per section 206AA​, if you do not furnish your Permanent Account Number to the payer (i.e., deductor), then the deductor shall deduct tax from whichever is the higher of the following, i.e, at the rate of 20%, or the rates specified in the relevant provision of the act or rates in force or the prescribed in the Finance Act.

How can I know the quantum of TDS deducted?

To know the quantum of the tax deducted by the payer, you can ask the payer to furnish you a TDS certificate in respect of tax deducted by him. You can also check Form 26AS​ from your e-filing account on Income Tax Portal.
You can also use the “View Your Tax Credit” facility available at www.incometaxindia.gov.in

What happens if TDS not deducted?

​It is the duty and responsibility of the payer to deduct tax at source. Therefore, if the payer fails to deduct tax at source, penalty is levied for not depositing or not deducting TDS on time. However, the employer can make the interest payment on such late payment of TDS before filing TDS returns or demand raised by TRACES.


How to Download TDS Return Preparation Utility (RPU)?

The deductor needs to file TDS/TCS Returns on a quarterly basis. The Income Tax Department has notified file formats for the preparation of TDS and TCS statements/returns. Hence, the NSDL e-Gov has developed a software called an e-TDS/TCS Return Preparation Utility (RPU) to facilitate the preparation of e-TDS/TCS returns.

Steps to Download Return Preparation Utility

  1. Visit the TIN-NSDL portal.

    Click on Services > e-TDS/e-TCS option from the dashboard.

  2. Click on e-TDS/e-TCS RPU.

    From the e-TDS/e-TCS option located on the left side.

  3. Click on the “Download RPU Version 3.0” link.

    The versions are modified from time to time. So make sure to have latest version of RPU.

  4. Extract the files

    The file downloaded is a zipped file.

  5. Open the “TDS_RPU_3.0.jar” which is the executable jar file.

    From the list of files in the folder.

  6. Click on the “OK” option to access the utility.

    Start filling the details to prepare TDS Return/Statement.

FAQs

1. Is there any software available for the preparation of e-TDS/e-TCS return?

NSDL e-Gov has made available a freely downloadable Return Preparation Utility for the preparation of e-TDS/TCS statements. Additionally, you can develop your own software for this purpose or you may acquire software from various third-party vendors.

2. What is the current RPU version for the preparation of e-TDS/e-TCS statements?

Return Preparation Utility (RPU) version 3.0 is to be used for the preparation of e-TDS/TCS regular and correction statements pertaining to Financial Year 2007-08 onwards.

3. What is TDS Return Form 26Q?

Form 26Q is for Non-Salary Deductions. Form 26Q is used to file TDS details of payments other than Salary. The form also mentions the total amount that is paid during the quarter and the TDS amount that has been deducted.

Generate TDS File Using RPU

The deductor/collector of TDS/TCS can file Return using Return Preparation Utility (RPU). The users can Download the Return Preparation Utility (RPU) from the TIN NSDL. Once the installation process is complete, the users can prepare their TDS return file using the utility. TDS Return can be filed in following two ways:

  1. Through TIN FC Center,
  2. Through Income Tax e-Filing Portal.

Steps to Prepare TDS File using Return Preparation Utility (RPU)

  1. Open the executable JAR file.

    Once the RPU is downloaded and installed from TIN NSDL.

  2. Click on the “Ok” option to move forward.

    A pop-up message appears on the screen.

  3. Select TDS Return Form Type based on Nature of Payment

    The employer needs to select Form 24Q for filing TDS on salary payments.

  4. Select the Type of Return i.e, Regular or Correction

    Regular return is the original TDS Return and Correction is the revised TDS Return.

  5. Fill in the required details in the Form

    Enter basic details like TAN, FY, Name and Address of Deductor and Responsible Person.

  6. Fill in the Challan details.

    Challan details like BSR Code, Challan Number, Date of Deposit, TDS Amount, Section, etc.

  7. Clicking on the “Add Rows” option to add more challans.

    This will allow you to add all the challan deposited with the Income Tax Department.

  8. Click on the “Annexure Deductee Details” section.

    Add details of deduction/ payment here like PAN, Name, Payment Amount, Section, TDS Amount, etc.

  9. Click on the “Create File” option.

    If there are any errors then same will be shown. And needs to be fixed before filing TDS Return.

Once the file is created from RPU, one needs to add this file and Challan Inquiry File into FVU of TDS/TCS Return and create an FVU file. And this FVU file will be used to file TDS/TCS Return.

FAQs

1. Can we file an e-TDS return without TAN?

Quoting of TAN is mandatory in TDS and TCS returns, whether filed in paper or electronic format. The returns, whether in paper or electronic format, will not be received in case TAN is not quoted.

2. What is Form 27A?

The Form 27A is a summary of e-TDS/TCS returns which contains control totals of “Amount Paid” and “Income Tax Deducted at Source”. The control totals of Amount Paid and Income Tax Deducted at Source mentioned on Form No. 27A should match with the corresponding control totals in e-TDS/TCS return. It gets generated from FVU while filing TDS Return.

3. What is the Challan Serial Number given by the bank?

Bank Challan Number is a receipt number given by the bank branch where TDS is deposited. A separate receipt number is given for each challan deposited. You are required to mention this challan number in the e-TDS/TCS return.

4. What is the Bank Branch Code and where do I get it from?

The Reserve Bank of India has allotted a unique seven-digit code to each bank branch. You are required to mention the code of the bank branch where TDS is deposited in the e-TDS/TCS return. You can get this code from the bank branch where the TDS amount is deposited.

5. Can I file Form 26Q separately for contractors, professionals, interest, etc.?

No. A single Form 26Q with separate annexures corresponding to each challan payment for each type of payment has to be filed for all payments made to residents.

Application for Duplicate Provisional Receipt Number (PRN)

A 15-digit Provisional Receipt Number (PRN) gets generated once the e-TDS or e-TCS return is filed. The deductor can file TDS/TCS Return either on Income Tax E-filing Portal or with TIN FC. PRN is nothing but an acknowledgment of e-TDS/ e-TCS Return filed. Furthermore, there are two different ways to gain access to the Provisional Receipt. They are as follows:

  1. Download the Provisional Receipt from the Income Tax e-Filing portal
  2. File a request letter to the NSDL e-Governance to obtain a duplicate Provisional Receipt
The Provisional Receipt Number can be accessed from the Income Tax e-Filing Portal only if the TDS return is filed from the Income Tax e-Filing portal.
Tip
The Provisional Receipt Number can be accessed from the Income Tax e-Filing Portal only if the TDS return is filed from the Income Tax e-Filing portal.

Steps to Download Provisional Receipt Number from the Income Tax e-Filing Portal

  1. Visit the Income Tax e-Filing Portal and Log into your Account.

    Select the TDS > View Filed TDS option from the dashboard.

  2. Fill in TAN, Financial Year, Form Name, Quarter, Upload Type

    Click on View Details

  3. Click on the Token Number.

    Details of Return along with PRN will appear

  4. Click on the option to download the Provisional Receipt.

    It is password protected and password is TAN in lower case.

Steps to Apply for Duplicate Provisional Receipt on TIN NSDL

  • Step 1: Visit the TIN-NSDL portal.
  • Step 2: Click on the Services > Form 24G from the dashboard.
  • Step 3: Click on the “Procedure to obtain a duplicate copy of the “Provisional Receipt Number” option under the Form 24G section.

Hence, the address where the request letter should be forwarded to is mentioned.

Therefore, the format of the letter to be submitted is given below.

Download Letter Template
Download Letter Template for Gaining Access to the Duplicate Provisional Receipt
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Download Letter Template
Download Letter Template for Gaining Access to the Duplicate Provisional Receipt
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FAQs

What is the importance of the Copy of the Provisional Receipt Number?

It is required under the following 2 scenarios:
– To prepare Correction statement: While preparing correction statement, the Original Provisional Receipt Number of the last statement is required.
– Submission of Correction Form statement through TIN FC: While submitting correction Form statement through TIN FC, the copy of Original Provisional Receipt needs to be mandatorily submitted along with the Form statistic report.

How should I get the duplicate copy of Original Provisional Receipt or Provisional Receipt Number (regular or correction)?

NSDL e-Gov shall email the duplicate copy of Original Provisional Receipt or Provisional Receipt Number (regular or correction) on the email ID as mentioned in the last Form 24G statement accepted at TIN Central System.

What is the password to open PRN of TDS Return filed on Income Tax E-filing site?

The password to open PRN is TAN of the deductor in Lower Case Format. The Receipt will open in a new tab and the deductor can download the same for future reference.  

Check Status of TDS / TCS Return Statement on TIN NSDL Portal

The individuals can visit the TIN NSDL portal to check the status of filed TDS/TCS return statements. TIN NSDL is essentially a repository that contains tax-related information from across the country. The deductor will require the following information to check the TDS / TCS Statement status on TIN-NSDL portal:

  1. TAN
  2. Provisional Receipt Number (PRN)
Check TDS / TCS Return Status
Enter TAN & PRN (Provisional Receipt Number) to check your TDS / TCS Return Status
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Check TDS / TCS Return Status
Enter TAN & PRN (Provisional Receipt Number) to check your TDS / TCS Return Status
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Steps to Check Status of TDS/TCS Return Statement on TIN-NSDL Portal

  1. Visit the TIN-NSDL portal.

    Click on the Services > Status of Tax Refunds option from the dashboard on the TIN-NSDL portal.

  2. Click on the “Quarterly Statement Status

    From the “eTDS/eTCS” section.

  3. Enter TAN, Provisional Receipt Number and Captcha.

    On the “Status of TCS/TDS Statements” page.

  4. Click on the “View Status” option.

    It will show you the status of filed TDS/TCS Statement.

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FAQs

After I prepare my eTDS/eTCS Statement, is there any way I can check or verify whether it conforms to the prescribed data structure?

Yes, after you have prepared your eTDS/eTCS statement/return, you can check or verify the same by using the File Validation Utility (FVU). This utility is freely downloadable from the TIN NSDL website.

What is the challan serial number given by the bank?

Bank Challan Number is a receipt number given by the bank branch where TDS is deposited. A separate receipt number is given for each challan deposited. You are required to mention this challan number in the e-TDS/TCS return.

Is the challan identification number compulsory while preparing the TDS Statement?

Yes. Challan Identification Number is necessary for all non-Government deductors.

Track the TDS Refund Status

The deductor needs to deduct the Tax (TDS) and file return is a quarterly statement with the Income Tax Department (ITD). The deductor can track the status of their TDS refund through the TIN NSDL portal.

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Steps to Track TDS Refund Status

  1. Visit the TIN-NSDL portal

    Click on Services > Status of Tax Refunds option from the dashboard on the TIN-NSDL portal.

  2. Click on the “Status of TDS Refunds” option

    It is under the “Status Tax Refunds” section.

  3. Enter the TAN, Assessment Year and Captcha Code

    On the “Refund Tracking” page. Click on the proceed to check the status.

FAQs

1. Can an e-TDS statement be filed without TAN or in case TAN has not been allotted?

Quoting of TAN is mandatory in TDS and TCS returns. The returns, whether in paper or electronic format, will not be received in case the TAN is not quoted.

2. Whom do I contact if the refund dispatched has not been received?

The refunds dispatched through the speed-post can be tracked by the tracking number. This tracking number is provided on the refund status track view on TIN NSDL. The taxpayer can also contact the local post office with the tracking number as displayed on the TIN NSDL.

3. Why does the status of TIN NSDL show that interest has been deducted on my refund?

The TDS u/s 195 had been deducted on interest income paid to NRIs at the time of determining refunds u/s 244A. For more details, you can contact the Assessing Officer of Ward where you have filed your return/CPC Bangalore in case of return filed online.

Selecting Assessing Officer Code for TAN Application

Deductor/Collector deducting TDS/TCS needs to apply for TAN before filing a return. The Assessing Officer (AO) is responsible for the assessment of filed returns. Furthermore, the Income Tax Department (ITD) appoints them. In case of any discrepancy is found in a filed return, AO will send you a notice seeking clarification.

The AO has the authority to ask for books of accounts, various other supporting documents, or any other details from the taxpayer for verification. The Assessing Officer can exercise the power of assessment or re-assessment.

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Steps to Find out Assessing Officer Details

  1. Visit TIN-NSDL portal.

    Click on Services > TAN from the dashboard.

  2. Click on “Apply Online

    Select the “New TAN” option from the drop-down list.

  3. Scroll down to the “Apply for New TAN” section

    Select the “Category of Deductors” from the drop-down list and click on the “Select” option.

  4. Click on the link given in the first line indicating the details of the Assessing Officer.

    On the Form 49B application page.

  5. Search the Assessing Officer details

    By selecting the appropriate alphabet of your city.

Check TAN Application Status
Check your TAN Status online. TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department. Get TAN status, name, application type.
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Check TAN Application Status
-Check your TAN Status online. TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department. Get TAN status, name, application type.
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FAQs

How do I find out the details of the Assessing Officer?

You can go to TIN NSDL > TAN > AO Codes to know the details of the jurisdictional assessing officer.

What are the powers of the Assessing Officer?

Following are the powers of an Assessing Officer (AO).
– Discovery and inspection
– Enforcing the attendance of any person, including any officer of a banking company and examining him on oath.
– Compiling the production of books of accounts and other documents.
– Issuing commissions

Who needs TAN number?

The alphanumeric TAN number is mandatory for all individuals who are responsible for deducting or collecting the tax.

Application for Correction/Change in TAN on TIN NSDL

The Payer/ Deductor can make change/correction in TAN details online through TIN NSDL. The deductor can make changes by filing “Form for Changes or Correction in TAN data for TAN allotted” for the following:

  • Change in address within the same state,
  • Contact Details Change, 
  • Change in details of Responsible Person, 

Moreover, a physical acknowledgment, along with proof should be submitted within 15 days of the online submission.

Steps to Apply for Correction/Change in TAN

  1. Visit the TIN-NSDL portal

    Select the “TAN” option from the “Services” drop-down on the dashboard

  2. Click on the “Apply Online” option

    Choose the “Change/Correction” option from the drop-down list

  3. Scroll down to the “Apply for Changes or Corrections in TAN data” section

    Select the Category of Deductor from the drop-down list and click on the “Select” option

  4. Enter the mandatory details in the form

    Enter the TAN number, Contact details, Address details, and click on the check-box located on the left side of the margin to mark the section that requires a change or correction.

  5. Click on the “Submit” option located at the bottom of the page.

    Once the form is filled out and Checked.

  6. Make Payment for an application

    There are 5 options for payment available i.e, Debit Card, Credit Card, UPI, Internet Banking, BharatQR.

Therefore, after completing the above process, your application for correction or change in TAN will be submitted.

Check TAN Application Status
Check your TAN Status online. TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department. Get TAN status, name, application type.
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Check TAN Application Status
-Check your TAN Status online. TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department. Get TAN status, name, application type.
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FAQs

Do I have to inform the Income Tax Department (ITD) or apply for a new TAN if I have changed my address?

The change of address within the jurisdiction does not change the TAN. However, it may involve a change in the Assessing Officer (AO). Therefore, such changes must be intimated to the ITD via change/ correction for filing. In case of a change in the state of the deductor, a new TAN needs to be allotted and the previous TAN needs to be surrendered.

What needs to be shown as proof of TAN in case one has lost the TAN allotment letter?

The printout of the webpage showing the details of the TAN from the Income Tax Department (ITD) website can serve as proof of TAN.

How can I change my address in TAN?

Address in TAN doesn’t change if an Individual has changed his/her address with the AO’s jurisdiction. However, it may require a change in Assessing Officer (AO)

What is Tax Account Number – TAN?

TAN is the short form for Tax Deduction and Collection Account Number. It is a 10 digit alphanumeric number, issued to a person who is required to deduct or collect tax on payments made by them. It is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).

Who needs TAN?

Every person who deducts or collects tax at source has to apply for the TAN. Since it is mandatory to file the following documents with the Income Tax Department:

  • ​TDS statements i.e. Return
  • ​TCS statements i.e. Return
  • Annual Information Return
  • Challans for payment of TDS/TCS
  • TDS/TCS certificates

As prescribed above, if a person fails to obtain or fails to quote a TAN, a penalty of INR 10,000 will be imposed.

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Understand TAN Number

It is 10 digit alphanumeric number which is explained in further detail below:

  • First, 4 digits of alphabets, the next 5 digits of are numeric and the last digit is an alphabet.
  • The First 3 alphabets represent the jurisdiction code, 4th alphabet is the initial of the name of the holder who can be a company, firm, individual, etc. For example, it is allotted to Mr. Atul of Ahmedabad may appear as under:

The combination of all the above items give TAN it’s unique identity.

How to apply for TAN?

You can apply for TAN using Form 49B. There are two modes for form submission:

  • Submit to nearest TIN Facilitation Center
  • Apply online via TIN-NSDL Website
Check TAN Application Status
Check your TAN Status online. TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department. Get TAN status, name, application type.
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Check TAN Application Status
-Check your TAN Status online. TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department. Get TAN status, name, application type.
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Apply via TIN-FC

An application for allotment is to be filed in Form 49B and submitted to any TIN-FC. Addresses of TIN-FCs are available at the TIN-NSDL website. You can download the Form 49B, fill it, and send it to the nearest TIN-FC.

Online Application

You can also apply online from the TIN-NSDL website. Following are the steps:

  1. Go to TIN NSDL
  2. Go to Services > TAN > Apply Online
  3. Prepare Form 49B with the required information
  4. Save the Acknowledgment, sign it and send it to TIN NSDL within 15 days.

Documents required for TAN

Following are the documents required for the application:

  • PAN of applicant
  • Personal Information of Deductor like Name, Address, Contact Details, etc,
  • Incorporation certificate of companies
  • Digital Signature Certificate (DSC) of Responsible person of Company
  • Details of Responsible Person
Know Your TAN
TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department to every taxpayer. Search by name and know your TAN.
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Know Your TAN
TAN (Tax Account Number) is a unique 10 digit issued by the Income Tax Department to every taxpayer. Search by name and know your TAN.
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Steps to file an Application Form for TAN on the TIN-NSDL Portal

Follow these steps to file an online application for the TAN on the TIN-NSDL portal.

  1. Visit the Tin-NSDL portal.

    Click on the Services > TAN option from the dashboard on the TIN-NSDL portal.

  2. Select the “New TAN” option

    From the “Apply Online” drop-down list.

  3. Go to “Apply for New TAN” section and select the “Category of Deductors” from the drop-down list.

    Select the applicable category.

  4. Click on the “Select” option

    After selecting the “Category of Deductors”

  5. Enter all the details in TAN Application Form 49B

    Click on the “Submit” option.

  6. click on the “Confirm” option.

    Enter the captcha code from the given image to complete the verification process of the registration.

  7. Click on the “Agree” option below the “Terms and Conditions” section.

    Go through Terms and Conditions before you agree.

  8. Choose the appropriate option the payment to complete the registration process.

    Payment can be done through Card or Net Banking.

  9. Download the TAN Application Acknowledgement

    It will be available to you in the PDF format which can be downloaded or printed if required.

You can also track the status of the TAN application from the TIN-NSDL portal.

Steps to View TAN Application on TIN NSDL Portal

  • Visit the TIN-NSDL portal and select the “TAN” option from the “Services” drop-down list on the TIN-NSDL Portal dashboard.
  • Select the option to know the Status of the TAN application
  • Select the “TAN – New/Change Request” option from the “Application Type” drop-down list
  • Enter the captcha code from the given image before submitting.

How to File an Application to Cancel TAN?

  • Click on Services > TAN from the dashboard on the TIN-NSDL portal.
  • From the “Apply Online” drop-down list.
  • Select the “Category of Deductors” from the drop-down list. Thereafter, click on the “Select” option.
  • On the corrections/change application page.
  • Click on the check-box on the left side of the margin.
  • Payment can be done through Debit Card, Credit Card, UPI, Internet Banking, or BharatQR. 

Therefore, after completing the payment process, an acknowledgment screen will be displayed with following information:

  1. Unique 14-digit acknowledgment number
  2. Status of applicant
  3. Name of applicant
  4. Contact details
  5. Payment details
  6. Space for Signature

Steps to View TAN Application on TIN NSDL Portal

  • Select the “TAN” option from the “Services” drop-down list on the TIN-NSDL Portal dashboard.
  • Choose the “Know Status of Your Application” from under the “TAN” Section.
  • Enter the 14-digit acknowledgment number in the respective field.
  • Enter the captcha code from the given image before submitting.

FAQs

1. How to check TAN application status?

You can track the application status either on TIN-NSDL or using track your TAN status tool.

2. Can I have more than one Tax Account Numbers?

No, you can not have more than one TAN. If a duplicate is allotted, you must surrender the duplicate it.

3. How long does it take to get TAN?

If you submit Form 49B without a digital signature, you must send a signed copy of Acknowledgement to TIN NSDL. TIN-NSDL will only process your application once they receive signed acknowledgment. It should take 1-2 weeks to receive your Tax Account Number post that.