How to Reactivate a Cancelled TAN?

The Tax Deduction and Collection Account Number (TAN) is a unique 10-digit alphanumeric identifier issued by the Income Tax Department of India. It is mandatory for individuals and various other entities responsible for deducting or collecting tax at source (TDS/TCS). Without an active TAN, deductors cannot file TDS returns, issue TDS certificates, or deposit TDS/TCS with the government.

In some cases, a TAN may get cancelled, which is either voluntary by the deductor or involuntary by the Income Tax Department due to non-compliance with requirements, duplication, or changes in business structure. When this happens, it’s crucial to reactivate the TAN to ensure uninterrupted tax compliance. This article will guide you through the process of reactivating a cancelled TAN in India.

Why a TAN May Get Cancelled?

1. Duplicate TANs: If an entity has obtained multiple TANs for the same purpose, the Income Tax Department may cancel the duplicates.
2. Voluntary Cancellation: A deductor may apply for cancellation when the business is closed or there is a change in constitution (e.g., proprietorship to partnership).
3. Inactivity or Non-compliance: Long periods of non-filing TDS returns or failure to deduct/deposit TDS may result in automatic cancellation.
4. Change in Jurisdiction or Structure: Change in PAN, address, or nature of business could also lead to cancellation of the TAN if not updated properly.

Regardless of the reason, if you still need to carry out TDS/TCS duties, reactivation of the cancelled TAN is essential.

Step-by-Step Guide to Reactivate a Cancelled TAN

There is no direct process of “reactivation” on the Income Tax e-filing official portal for TAN, like there is for PAN. However, the process of reactivation is possible through a structured or official approach involving communication with the Income Tax Department. Here’s a step-by-step guide:

Step 1: Check TAN Status

Before proceeding, confirm whether the TAN has indeed been cancelled. You can verify the status of your TAN on the TIN-NSDL website:

1. Visit https://www.tin-nsdl.com
2. Navigate to TAN > Know Your TAN.
3. Select the appropriate category (Deductor or Collector), enter relevant details such as PAN and name, and click “Submit”.

If the status shows “Cancelled”, proceed with the reactivation request.

Step 2: Draft a Formal Reactivation Request Letter

Prepare a request letter addressed to the Jurisdictional Assessing Officer (TDS). The letter should be printed on authorized letterhead (if applicable) and signed by the authorized signatory. Include the following details:

• Name and designation of the applicant
• PAN and cancelled TAN
• Reason for cancellation (if known)
• Justification for reactivation (e.g., business still active, need to comply with TDS provisions)
• Request for urgent reactivation
• Contact details

You should attach supporting documents like:

• Copy of PAN card
• Copy of TAN allotment letter
• Proof of ongoing business activity (e.g., GST certificate, bank statement)
• Identity/address proof of the signatory
• Past TDS returns (if available)

Step 3: Submit the Request to the Jurisdictional Officer

Once the letter and documents are ready:

• Locate your jurisdictional TDS Assessing Officer. You can find this on the Income Tax e-filing portal:

• • Go to https://www.incometax.gov.in

• • Login using PAN credentials.

• • Navigate to My Profile > Jurisdiction Details.

• Submit the letter in person at the local Income Tax office or send it via post or email (if accepted by your jurisdiction).

Step 4: Follow-Up

After submission:

• Regularly follow up with the TDS AO to know the status of your request.
• It may take a few days to a few weeks, depending on the workload and documentation.
• In some cases, the officer may ask for some additional documents or clarification.

Step 5: Confirmation and Use

If the reactivation is approved:

• The TAN status will be updated on the NSDL and e-filing portals.
• You will be allowed to file TDS returns, deposit tax, and generate TDS certificates using the same TAN.
• It is always advisable to keep a written confirmation or acknowledgment of reactivation from the department..!

Additional Tips

• Avoid Multiple TANs: If you applied for a new TAN instead of reactivating an old one, ensure only one is used and others are surrendered to avoid penalties.
• Timely TDS Return Filing: Once reactivated, ensure you comply with all TDS/TCS return filing timelines to prevent future issues.
• Professional Help: If the process seems too technical or delayed, consider engaging a tax consultant or chartered accountant to coordinate with the department.

Common Mistakes to Avoid

• Submitting Incomplete Documents: Always attach all relevant documents to avoid rejection or delays.
• Contacting the Wrong Jurisdiction: Ensure you approach the correct TDS officer for your case.
• Using Cancelled TAN: Do not continue filing returns or deducting TDS using a cancelled TAN until and unless it is officially reactivated.
• Ignoring Communication: Always respond promptly to any notices or queries that are sent by the department.

Conclusion

While there is no online mechanism yet to instantly reactivate a cancelled TAN, the process is straightforward if approached correctly. A well-drafted request in an official manner, proper documentation, and follow-up with the Jurisdictional Assessing Officer can help you get your TAN reactivated within a reasonable timeframe. Doing so ensures continued compliance with TDS regulations and avoids potential penalties or interest liabilities. If you’re unsure, consult with a tax professional to guide you through the process efficiently.

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