The Tax Deduction and Collection Account Number, or TAN, is a unique 10-digit alphanumeric code that the Income Tax Department of India issues. If you’re responsible for deducting or collecting tax at source under the Indian Income Tax Act, having a TAN is a must. However, instances where a given business or individual may not require TANs anymore – this would be when they shut down operations or change their structure as a business, or by chance get duplicate TANs. It is important when you are in such a situation to follow the right procedures for cancelling your TAN.
In this guide, we’ll take you through the process of cancelling your TAN number, whether you prefer to do it online or offline. We’ll also cover what you need, the forms to fill out, and the overall procedure.
What is TAN and Needs for Cancellation
TAN is needed to deduct TDS (Tax Deducted at Source) or TCS (Tax Collected at Source). It needs to be quoted in all TDS/TCS returns, payment challans, and certificates. Failure to apply for TAN or mentioning TAN incorrectly can result in a steep fine.
You might find yourself needing to cancel your TAN for several reasons:
- Your business has closed down
- You accidentally obtained duplicate TANs
- Your business structure has changed (like moving from a sole proprietorship to a company)
- You received a TAN that was issued incorrectly or under the wrong category
If any of these situations sound familiar, it’s important to start the TAN surrender process, either online or offline, to avoid any penalties and keep your records straight with the Income Tax Department.
Who Can Apply for TAN Cancellation?
- The deductor or collector (whether an individual or an entity) to whom the TAN was assigned
- An authorized signatory if it’s a company or partnership
- A representative, like a chartered accountant or legal consultant, who has the proper authorization
How to Cancel TAN Number: Online Process
The NSDL TAN cancellation portal makes it super easy for users to surrender their TAN online.
Step 1: Visit the NSDL TIN Portal
First, visit the official NSDL TIN website at https://tin.tin.nsdl.com/tan/index.html
Step 2: Select TAN Services
After getting to the site, click on the TAN section and select “Change or Correction in TAN data for TAN Allotted”.
Step 3: Fill the TAN Cancellation Form
After this, you are required to fill in the online application form with the required details.
- TAN to be cancelled
- Deductor/collector name and address.
- Reason for cancellation (one of the suggested choices)
- Any supporting documents in case there are some
Ensure that you tick the box that reads “Surrender of TAN.”
Step 4: Upload Required Documents
Depending on the reason for the cancellation, you may have to upload such documents as declaration letter, proof of identity or a business closure certificate. Just ensure that you upload them in the right format.
Step 5: Submit and Pay the Fees
Once having done your double check of everything, then go on and submit the form online and pay the fees.
Step 6: Acknowledgment Receipt
Once your submission is successful, you’ll receive an acknowledgment slip. Be sure to save and print this for your records. You might also need to send a signed copy of the acknowledgment along with any supporting documents to the NSDL office via courier.
TAN Cancellation via Offline Mode
Step 1: Download the TAN Cancellation Form
Take the form to be used in making changes or corrections to your TAN data, the same one used for corrections. This is the official form that you will need for cancelling your TAN.
Step 2: Fill Out the Form Carefully
Do not fail to give all the details, namely:
- The TAN that you want to terminate
- Your name and designation
- The cause of the cancellation
- Any supporting documents
Do not forget to select the “Surrender” option to indicate your request declaratively.
Step 3: Attach Your Supporting Documents
Include photocopies of important documents like the original TAN allotment letter, proof of business closure, and your identity/address proof.
Step 4: Submit to the NSDL Office
Send your completed form and attachments to the nearest NSDL TIN Facilitation Centre. You can find the closest centre by visiting the NSDL website.
Conclusion
De-activating your TAN is not that difficult as long as you undertake the correct procedures. In case you go the online way through NSDL portal, or you want to go the old-fashioned way, just ensure that all your particulars are on point and all your documents are in order. Being familiar with the process of how to cancel TAN assists the businesses in adhering to the compliance and avoiding any unwanted issues.
Kanakkupillai is here to provide expert support for TAN surrender, corrections, and TAN registration. Our team efficiently and accurately manages the entire TAN cancellation process, both online and offline.
Get in touch with Kanakkupillai today for seamless and trustworthy compliance services!
