TAXINDIA FAQ's
Capital Gains refer to the income earned from the sale of a capital asset. A capital asset is any property that an individual or entity holds for personal or business purposes. These assets are subject to tax in the year they are transferred. This tax is commonly known as Capital Gains Tax.
There are two types of capital gains tax:
Short-Term Capital Gains (STCG)
Long-Term Capital Gains (LTCG)
The taxable capital gain is calculated by subtracting the cost of acquisition from the sale value of the asset. The resulting profit is subject to capital gains tax.
Common Examples of Capital Assets:
Land
Buildings
Residential properties
Patents
Trademarks
Vehicles
Leasehold properties
Machinery
Jewelry
Capital gains tax applies to these assets when sold, and the amount of tax depends on the duration of ownership, whether short-term or long-term. For more details, visit TAX INDA's FAQ Section.
A capital asset refers to significant property or items such as investments, stocks, bonds, homes, vehicles, and art collectibles. These assets typically have a useful life exceeding one year and are not intended for regular sale in the normal course of business. For example, a car bought for resale purposes would be classified as inventory, not a capital asset. However, a car purchased by an individual or business for personal or operational use would be considered a capital asset.
According to Section 2(14) of the Income Tax Act, 1961, the term "capital asset" includes:
Any type of property held by the taxpayer, regardless of whether it relates to their business.
Securities held by Foreign Institutional Investors (FIIs) who have invested in securities as outlined by the SEBI Act, 1992.
Unit Linked Insurance Policies (ULIPs) that do not fall under exemptions specified in Section 10(10D).
However, the following are not considered capital assets:
Stock-in-trade, except for specific securities, raw materials, or consumable goods held for business or professional purposes.
Personal assets held for personal use or for the use of dependents. However, assets such as jewelry, paintings, sculptures, artwork, and historical collections are still considered capital assets.
For more detailed information on capital assets, visit TAX INDA's FAQ Section.
A long-term capital asset is an asset that is held for more than 36 months before it is transferred or sold. However, there are exceptions where certain assets are considered long-term even if held for more than 12 months. These include:
Equity shares or preference shares listed on a recognized Indian stock exchange.
Other securities listed on the Indian Stock Exchange.
Units of UTI (Unit Trust of India).
Units of equity-oriented mutual funds.
Zero-coupon bonds.
Unlisted preference shares or equity shares in a company (if transferred on or before July 10, 2014).
Mutual fund units as specified under Section 10(23D) (except for equity-oriented funds).
If an asset is held for 36 months or less, or 12 months for specific assets, it is categorized as a short-term capital asset. Such assets are taxed at a different, often higher, rate compared to long-term capital assets.
For more insights, visit TAX INDA's FAQ Section.
Long-term capital gain refers to the profit earned from the sale of a long-term capital asset. The classification of assets as short-term or long-term depends on the holding period. For long-term capital assets, there is an additional benefit known as indexation. This allows you to increase the acquisition cost of the asset, which in turn reduces the taxable profit and the overall tax liability.
Short-term capital gain, on the other hand, arises from the sale of short-term capital assets. These gains are also classified based on the holding period and the type of asset. Unlike long-term capital gains, short-term capital gains do not benefit from indexation. Additionally, the tax rates on short-term capital gains, particularly on equity mutual funds, tend to be higher than those on long-term capital gains.
To calculate the indexed cost of acquisition, you can use an indexed cost calculator to determine the adjusted acquisition cost for long-term assets.
For more details on capital gains and taxes, visit TAX INDA's FAQ Section.
The classification of capital gains into short-term and long-term is based on the holding period of the asset. The duration for which an asset is held determines whether it is subject to short-term or long-term capital gains tax. Additionally, the tax rates for short-term and long-term capital gains differ, which is why assets are classified accordingly.
Long-term capital gains (LTCG) apply to assets held for over 1 year (for most assets) or over 3 years (for fixed assets). The tax rates on long-term capital gains can be 0%, 15%, or 20%, depending on the taxable income.
Short-term capital gains (STCG) refer to the profits from the sale of assets held for less than 1 year or 3 years, depending on the asset type. The tax rates for short-term capital gains are generally higher than those for long-term capital gains.
For more information on capital gains and related taxes, visit TAX INDA's FAQ Section.
Long-term capital gains are earned when an asset is sold at a profit after being held for more than 1 year (for shares and securities) and up to 3 years (for assets like land, buildings, etc.).
To compute long-term capital gain, follow this formula:
Long-term capital gain = Sale Price - (Indexed Cost of Acquisition + Indexed Cost of Improvement + Transfer Costs)
Indexed Cost of Acquisition: The purchase cost of the asset multiplied by the Cost Inflation Index (CII) for the year the asset was transferred or acquired.
Indexed Cost of Improvement: The cost of improvements made to the asset, adjusted by the Cost Inflation Index of the year the asset was transferred or improved.
The resulting gain is taxed at the rates applicable based on the asset type and your tax bracket.
For more detailed information, visit TAX INDA's FAQ Section.
A short-term capital gain (STCG) arises when a capital asset is sold for a profit after being held for less than 1 year (for shares and securities) or less than 3 years (for other assets).
Calculating Short-Term Capital Gains on Shares:
Let’s say you bought 100 shares of X Ltd. at Rs. 100 each and sold them at Rs. 120 after holding for 6 months. The calculation for STCG would be:
STCG = Sale Price - Purchase Price
STCG = (Rs. 120 x 100) - (Rs. 100 x 100) = Rs. 2000
Sale Price Calculation:
The sale price is calculated as:
Sale Value of the asset - (brokerage charges + securities transaction tax)
Calculating STCG on Other Assets:
To compute STCG for other assets, use the following formula:
STCG = Sale Value of the Asset - (Cost of Acquisition + Transfer Expenses + Cost of Improvement)
Cost of Acquisition: For assets bought before 1st February 2018, the cost is calculated using the Fair Market Value (FMV), which is determined by multiplying the number of shares by the highest share price on 31st January 2018. The lower value between the FMV and the actual sale price is used. This is then compared with the actual purchase value, and the higher of the two is selected.
Cost of Improvement: This refers to the expenses made to enhance the asset, such as construction, expansion, or repairs. Note that this does not apply to equity shares.
For more information on capital gains, visit TAX INDA's FAQ Section.
No, the benefit of indexation is not available when calculating the capital gain from the transfer of short-term capital assets.
Indexation is the process of adjusting the purchase price of an asset according to inflation, ensuring that the real gain is taxed. By accounting for the inflation rate between the purchase year and the sale year, the indexation reduces the asset's purchase price, leading to a lower taxable profit and, thus, a reduced tax liability.
Since short-term capital assets are held for a shorter duration, they are less impacted by inflation. As a result, the benefit of indexation does not apply to short-term capital gains.
For further details on capital gains, visit TAX INDA's FAQ Section.
For capital assets acquired before 1st April 2001, the cost of acquisition is either:
Fair market value (FMV) as of 1st April 2001, or
Actual cost of acquisition, whichever is higher.
If the asset is acquired through undisclosed income declared under the Income Declaration Scheme, 2016, the cost of acquisition will be the FMV on the date of the declaration.
As per the Income-tax Law, the term 'transfer' includes:
Sale, exchange, or relinquishment of the asset.
Extinguishment of any rights in the capital asset.
Transfer through a gift or inheritance (though it does not trigger immediate capital gains tax).
Under Section 10, there are exemptions available on certain capital gains, such as:
Agricultural land in specific rural areas.
Capital gains from the sale of residential property if invested in another residential property (under Section 54).
Certain bonds or assets under Section 54EC or 54F.
Short-term capital gains (STCG) are taxed at 15% on equity shares and equity mutual funds. For other assets, the rate is based on the nature of the asset.
Long-term capital gains (LTCG) are taxed at:
0% for assets up to Rs. 1 lakh.
10% on gains exceeding Rs. 1 lakh (for equity shares and equity mutual funds, without indexation).
20% with indexation for other assets.
The stamp duty value plays a crucial role when transferring land or buildings. It is considered the fair market value for calculating capital gains if it exceeds the sale price. If the stamp duty value is higher than the sale price, it becomes the consideration for transfer.
Interest earned on the amount deposited in a Capital Gain Account Scheme is taxable as income from other sources and is subject to tax.
To withdraw from a Capital Gain Account, you need to:
File Form C (for withdrawal for reinvestment in another asset) or Form G (for withdrawal for other purposes).
Ensure proper documentation is provided to the bank, such as the endorsement from the Assessing Officer (AO), if required.
For capital assets transferred by gift or will, the cost of acquisition and holding period are transferred to the beneficiary. The asset’s cost is taken as the cost of acquisition for the previous owner, and the holding period is calculated from the date the asset was first acquired by the donor or testator.
An Income Tax Return (ITR) is a form used to report your income, deductions, and tax liability to the Income Tax Department. It is a way for individuals and entities to comply with their tax obligations in India.
Who needs to file an ITR?
Individuals whose income exceeds the basic exemption limit set by the Income Tax Department.
People who have income from multiple sources, including salary, business, capital gains, etc.
Those who have foreign assets or income.
Individuals who wish to claim refunds or carry forward losses.
Businesses and professionals whose annual turnover exceeds the prescribed limits.
Benefits of e-filing:
Convenience and time-saving process.
Faster processing and quicker refunds.
Accuracy and automatic error-checking.
Paperless and eco-friendly.
Revising an ITR: Yes, you can revise your ITR after filing it. If you realize any mistake in the originally filed ITR, you can file a Revised Return under section 139(5) within one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
You can revise your ITR multiple times, but it should be done within the specified period (one year from the end of the assessment year).
No, you cannot file an ITR without a PAN. The PAN is mandatory for the filing of the ITR, as it is a unique identifier for taxpayers.
Aadhaar and PAN linking is mandatory for filing ITR. The Income Tax Department has made it compulsory to link your Aadhaar number with PAN to file ITR and to ensure a more streamlined process.
If there are discrepancies or errors in your filed ITR, such as incorrect income details or tax calculations, you can file a Revised Return under section 139(5). The revised return allows you to correct the mistakes made in the original return.
If the discrepancy involves TDS mismatches or incorrect income details, you should reconcile your information with Form 26AS to avoid errors. You can also correct any mismatches before the assessment is completed.
Consequences of not filing an ITR:
Penalties for late filing or failure to file, as per the Income Tax Act.
Interest on any unpaid taxes.
Loss of the opportunity to carry forward losses.
Ineligibility for tax refunds.
ITR for Senior Citizens: Senior citizens (above 60 years) are required to file an ITR if their income exceeds the basic exemption limit. However, they benefit from higher exemption limits. For example:
Senior citizens aged 60 to 80 years have an exemption limit of Rs. 3,00,000.
Super senior citizens (above 80 years) have an exemption limit of Rs. 5,00,000.
Yes, you need to report:
Unlisted equity shares in the ITR, including their cost of acquisition and sale consideration.
Foreign assets in the Schedule FA.
Capital gains from the sale of land or property outside India in the Schedule CG. You should also provide details of the buyer, including their PAN (if applicable).
To track the status of your filed ITR, you can visit the Income Tax Department's e-filing portal and check the Status section using your ITR acknowledgment number.
Yes, an Authorized Signatory or Representative Assessee can e-verify your ITR on your behalf if you grant them the authorization. The process can be done through the e-filing portal or using OTP via registered mobile or email.
Yes, residential status plays a crucial role in determining the taxability of income. If an individual is a resident, they are taxed on their worldwide income, whereas a non-resident is only taxed on income earned in India.
For a Hindu Undivided Family (HUF), the residential status is determined based on the status of the karta (head) and the period for which the family has been residing in India.
Capital gains from the sale of assets such as land, property, or shares (including unlisted shares) should be reported in Schedule CG, where you provide details of the sale price, cost of acquisition, and capital gain.
Foreign assets are reported in Schedule FA, where you provide details of your foreign bank accounts, financial interests, and income.
Schedule AL requires you to report the details of assets and liabilities if the total income exceeds a specified limit. Unlisted shares held as stock-in-trade should also be reported.
If your Self-Assessment/Advance Tax payments are not reflected in Form 26AS, you should:
Verify the details with the bank or payment platform used for making the payments.
Check whether the payment has been correctly reported to the Income Tax Department.
If discrepancies persist, you may need to raise the issue with the Income Tax Department using the e-filing portal or consult your bank for reconciliation.
Form 16 is a certificate issued by an employer to an employee, which provides details about the salary paid and the tax deducted at source (TDS) from the salary during a particular financial year. It serves as a proof of income and tax deductions for filing Income Tax Returns (ITR).
Form 16A is similar but is issued for non-salary income where TDS is deducted, like interest, rent, or professional fees. Unlike Form 16, which is exclusively for salaried individuals, Form 16A applies to other sources of income and is issued by banks or other dedicators.
Form 16 must be issued by an employer to an employee if TDS has been deducted from the salary, irrespective of the amount. It must include details of salary paid and the tax deducted during the year.
There is no specific income limit for issuing Form 16, but it is applicable only if the employer has deducted TDS on the employee's salary. If the salary is below the taxable limit (after deductions), TDS may not be deducted, and Form 16 will not be issued.
Yes, Form 16 is specifically for salaried employees. It reflects the salary earned and the taxes deducted from it.
Mandatory for filing ITR?
Form 16 is not mandatory for filing ITR, but it is extremely helpful. If you have received Form 16, you should use the information provided to file your Income Tax Return accurately. You can file ITR without it, but you will need to manually report your income and tax deductions.
Form 16 without a signature:
In the case of an e-form 16, a digital signature is sufficient, and a physical signature is not mandatory. In the case of a physical Form 16, a signature from the employer is required.
Form 16 without TDS:
Form 16 cannot be issued without TDS if the employer has deducted tax at source. If no TDS is deducted (i.e., your income is below the taxable limit), Form 16 will not be issued.
If you notice any errors in Form 16, such as incorrect figures or company name in Part A, you should contact your employer immediately for correction. The employer must issue a corrected Form 16, as it is their responsibility to ensure accuracy.
Form 16 should be filled out by the employer. You, as an employee, cannot fill out Form 16 yourself. However, you can use the details in Form 16 to fill out your Income Tax Return (ITR).
Is it necessary for all employees?
No, Form 16 is only issued to employees who have had TDS deducted from their salary. It is not mandatory for employers to issue Form 16 to employees who do not have any TDS deducted.
If there is an error while submitting Form 16/16A on TRACES, the deductor (usually the employer or payer) should correct the details and resubmit the form. They may need to validate the details again to ensure that they are correct before submission.
Due date for issuing Form 16:
Form 16 must be issued to employees on or before 31st May following the end of the financial year.
Can a deductor download Form 16 without being registered on TRACES?
No, a deductor must be registered on the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal to download Form 16 and issue it to employees.
To edit or add details of the authorized person in Form 16/16A, the deductor must access the TRACES portal. The details of the authorized person (such as name, designation, and contact information) can be updated in the TDS/TCS correction statement before generating or issuing Form 16/16A.
For Non-Resident Indians (NRIs) selling property in India, TDS at the rate of 20% is deducted on the sale proceeds. In case of long-term capital gains, the TDS is deducted at 20% with indexation, and for short-term gains, it's at the applicable income tax slab rate.
TDS applies to various types of payments such as salary, interest, rent, commission, professional fees, dividends, etc. The rates for TDS vary depending on the nature of the payment and the recipient’s tax status. For example, salary TDS is based on the individual's income tax slab, while for interest on fixed deposits, it's generally 10% if PAN is provided.
Yes, TDS is generally not deducted if the amount of payment does not exceed the prescribed threshold limit. For example, interest on bank deposits is exempt from TDS if it is less than Rs. 40,000 (for individuals) in a financial year.
Yes, the payee can request the payer not to deduct TDS by submitting Form 15G or 15H (for individuals whose income is below taxable limits). However, these forms are only applicable for certain types of income, like interest, and the payee needs to meet the eligibility criteria.
The tax deducted at source can be verified through Form 26AS, which is available on the Income Tax Department's portal. It shows the details of the tax deducted by the payer and deposited with the government.
If a taxpayer has not filed their income tax return for the previous year, the payer will deduct tax at a higher rate (i.e., 20% or as per the applicable rate under the Income Tax Act). Additionally, if the payer does not have the PAN of the taxpayer, TDS will be deducted at the maximum marginal rate.
If the TDS credit is not reflected in Form 26AS, the taxpayer should contact the deductor to confirm whether the TDS was deposited correctly. The deductor must rectify any discrepancies with the Income Tax Department and update Form 26AS accordingly.
No, you cannot submit Form 15G or 15H for non-deduction of TDS if you do not have a PAN. A valid PAN is mandatory for submitting these forms to avoid TDS deduction, except in specific circumstances like income below the taxable threshold.
Yes, using TDS collected from others for personal use instead of depositing it in the government account is a serious offense. It can lead to penalties and legal consequences under the Income Tax Act.
Yes, even if you have not received the TDS certificate from the deductor, you can still claim TDS credit in your Income Tax Return by referring to the details in Form 26AS. Ensure that the TDS amount is shown in Form 26AS and matches your records.
Yes, under the Income Tax Act, TDS is required to be deducted at the rate of 1% when purchasing immovable property (land or building) for Rs. 50 lakh or more. The buyer must deduct TDS on the sale price before making the payment to the seller.
TDS on director's remuneration is generally deducted at the rate of 10% under Section 194J, provided the total remuneration exceeds Rs. 30,000 during the financial year. If no PAN is provided, the TDS rate is 20%.
No, TDS is not required to be deducted on payments made to the Government, as the Government is exempt from TDS.
Yes, Tax Collected at Source (TCS) can be collected on the amount inclusive of GST. However, it depends on the type of transaction and whether it falls under the specified provisions for TCS.
Salary income includes basic salary, allowances, bonuses, perquisites, and other forms of compensation received by an employee from their employer in return for services rendered. This also includes benefits like housing rent allowances (HRA), special allowances, and retirement benefits (pension, gratuity) if applicable.
Allowances are amounts paid by an employer to an employee to meet certain specific expenses incurred in the course of performing job duties. These can be taxable or exempt, depending on the type. Examples include house rent allowance (HRA), transport allowance, special allowances, and medical allowances.
Reimbursements for expenses like grocery and children's education are generally not taxable as income if they are made on an actual basis, i.e., if they are reimbursements for actual expenses incurred by you in the course of your employment. However, if these amounts are paid over and above actual expenses or are considered a fringe benefit, they may be treated as income and taxed accordingly.
Yes, if your total income exceeds the basic exemption limit and tax has not been deducted at source (TDS), you are liable to pay tax on your own by filing your income tax return. You can calculate your total taxable income, including the salary from all employers, and pay the taxes accordingly.
Yes, even if no taxes have been deducted, your employer is required to issue Form 16. This is a certificate of salary income and the TDS deducted (if any), and it is essential for you to file your Income Tax Return (ITR). It helps in providing a breakdown of your salary and other deductions.
Ex-gratia is generally considered a voluntary payment made by an employer. It is taxable under the head 'Income from Salary' unless it is part of a settlement (such as retrenchment compensation). The taxability depends on the circumstances under which it is paid and whether it is linked to the termination of employment or not.
Yes, transport allowance is eligible for tax exemption under Section 10(14) of the Income Tax Act, up to a limit of Rs. 1,600 per month. However, this exemption is available only if the transport allowance is paid for commuting to work and not for personal expenses.
Pension income is not considered salary income but is instead taxed under the head "Income from Other Sources". However, in case of family pension, it is taxable as "Income from Other Sources" as well but is eligible for a deduction of one-third of the pension amount or Rs. 15,000, whichever is lower.
Family pension is not taxed as salary income; it is taxed under the head "Income from Other Sources." However, it is eligible for a deduction of one-third of the family pension received or Rs. 15,000, whichever is lower.
Senior citizens (aged 60 years or above) are entitled to higher basic exemption limits, and very senior citizens (aged 80 years or above) get even more beneficial exemptions. The tax slab for senior citizens is more favorable, allowing them to earn more without paying tax. Additionally, there are tax exemptions on interest income from deposits for senior citizens.
For senior citizens (60-79 years):
The basic exemption limit is Rs. 3,00,000 (instead of Rs. 2,50,000 for others).For very senior citizens (80 years and above):
The basic exemption limit is Rs. 5,00,000.
Under the Income-tax Law:
A senior citizen is an individual aged 60 years or more but less than 80 years.
A very senior citizen is an individual aged 80 years or more.
Yes, very senior citizens (aged 80 years or more) enjoy certain special benefits:
A higher basic exemption limit of Rs. 5,00,000.
They also have exemptions on interest income from savings accounts and fixed deposits under Section 80TTB.
No need to pay advance tax (if their total tax liability is below the threshold, they are not required to pay advance tax).
Yes, very senior citizens (aged 80 years or more) are granted an exemption from mandatory e-filing of income tax returns. They can file their return in paper form instead of using the e-filing method. This exemption is specifically provided to ease the process for individuals of advanced age.
Yes, resident senior citizens (aged 60 years or more) are exempted from paying advance tax, provided their income is not derived from business or profession. This benefit is available to senior citizens who do not have business income and only have pension, interest, or rental income, for example.
Senior citizens are eligible for the following benefits in respect of interest on deposits:
Under Section 80TTB, a deduction of up to Rs. 50,000 is available on interest income earned from savings accounts, fixed deposits, and recurring deposits for senior citizens.
This deduction is available only to senior citizens (aged 60 years and above).
For very senior citizens (aged 80 years and above), the same deduction is available, and they are also exempt from TDS on interest income up to this limit.
A tax audit is an examination of the financial records and accounts of a business or individual to ensure that the tax returns filed are accurate, complete, and in compliance with the provisions of the Income-tax Act. It is conducted by a qualified Chartered Accountant (CA) to verify the taxpayer’s income, expenses, deductions, and the tax liability.
The primary objective of a tax audit is to:
Ensure compliance with tax laws and regulations.
Verify that the financial statements provided are true, fair, and accurate.
Assess whether the taxpayer has correctly reported income and claimed deductions.
Minimize tax evasion by ensuring that businesses and individuals maintain proper accounting records and adhere to tax laws.
The due date for getting the accounts audited is typically the same as the due date for filing the Income Tax Return (ITR), which is:
September 30th of the assessment year (for businesses).
For businesses and professionals whose accounts need to be audited, the due date for filing the ITR is extended to September 30th (from the original date of July 31st).
In case the tax audit report is not filed by this date, it could result in penalties.
Form 3CA: This form is used when a taxpayer has their accounts audited under any other law (like the Companies Act, etc.), and they need to comply with the tax audit provisions under section 44AB of the Income-tax Act.
Form 3CB: This is used for individuals or entities who are required to get a tax audit done but do not have their accounts audited under any other law. It is a tax audit report specifically under section 44AB.
Form 3CD: This form contains the detailed tax audit report, which needs to be submitted along with Form 3CA or 3CB. It includes various details regarding the taxpayer's financials, income, and tax-related matters.
No, if a person is already required to get their accounts audited under any other law (such as the Companies Act, etc.), they do not need to get a separate tax audit under section 44AB. Instead, they can submit Form 3CA along with Form 3CD, which will fulfill the requirements of tax audit under the Income-tax Act.
If a taxpayer fails to get their accounts audited as required under section 44AB, they may face a penalty. The penalty is generally the lower of the following:
0.5% of the total sales, turnover, or gross receipts of the business or profession.
A minimum penalty of Rs. 1,50,000.
A tax audit under section 44AB is compulsory for the following entities and individuals:
Business with a turnover or gross receipts exceeding Rs. 1 crore.
Profession with gross receipts exceeding Rs. 50 lakh.
Businesses and professionals claiming deductions under sections 10A, 10B, 10BA, 80H to 80RRB, etc.
Individuals whose income exceeds the taxable limit and who have any of the above conditions.
Taxpayers whose turnover, gross receipts, or income exceeds the threshold mentioned are mandated to get a tax audit done.
TAN (Tax Deduction and Collection Account Number) is a unique 10-digit alphanumeric number issued by the Income Tax Department. It is required by businesses or individuals who are responsible for deducting or collecting tax at source. TAN is used for the purpose of reporting TDS (Tax Deducted at Source) or TCS (Tax Collected at Source).
Any person or entity that is required to deduct tax at source (TDS) or collect tax at source (TCS) is required to obtain a TAN. This includes:
Employers who deduct TDS from salaries.
Business owners who deduct TDS from payments made to contractors, professionals, etc.
Banks or financial institutions that deduct or collect TDS or TCS.
TAN is required to:
Track and report tax deductions or collections made at source.
Ensure proper compliance with the Income Tax Act by reporting the amount of tax deducted or collected.
Avoid penalty or non-compliance by providing a unique identification for TDS/TCS transactions.
It is needed to file TDS returns and issue TDS certificates (Form 16, 16A).
A duplicate TAN is issued when the same entity has applied for more than one TAN, often due to oversight, or if an applicant inadvertently applies multiple times. The duplicate TAN might cause confusion or result in non-compliance.
If a duplicate TAN has been allotted, you should use the original or primary TAN. The duplicate TAN should be canceled to avoid any confusion in TDS filings. The duplicate TAN can be surrendered by contacting the Income Tax Department.
If you have been allotted a duplicate TAN by oversight, you should:
Surrender the duplicate TAN by submitting the required request to the Income Tax Department.
Use the primary or original TAN for all TDS or TCS related matters.
Ensure that all future returns or TDS filings are done using the correct TAN.
TAN can be applied for online or offline:
Online: Visit the official NSDL-TIN website (https://www.tin-nsdl.com) and fill out the application form (Form 49B). Submit the form and make the payment.
Offline: Download the form, fill it out, and submit it to the TAN facilitation center.
The Income Tax Department is responsible for allotting the TAN. When an application is submitted, the department verifies the details and assigns a unique TAN number.
Yes, an online application for TAN allotment can be made. You can apply through the official website of NSDL-TIN or UTIITSL by submitting the Form 49B online, paying the applicable fees, and obtaining the TAN.