The Income Tax Department has introduced two new simplified forms, replacing the old Form 49B to streamline the process of applying for a Tax Deduction and Collection Account Number (TAN). Form 134 is designated for government entities, while Form 135 is for non-government entities, including individuals, companies, and firms.
Previously, both government bodies and private entities used Form 49B for TAN application. The new division into Form 134 for government entities and Form 135 for others aims to enhance clarity by focusing on relevant information in each form.
A TAN is a 10-digit alphanumeric number necessary for entities responsible for deducting or collecting tax at source to comply with TDS or TCS rules. Businesses, companies, and individuals involved in tax deduction must apply for TAN using the appropriate form.
The updated forms now require non-government applicants to provide their PAN for effective linking with TAN. Companies need to include their Corporate Identity Number (CIN), while LLPs must mention their registration number. Government entities are now mandated to provide the Accounts Office Identification Number (AIN) along with the office name.
The revised forms also feature a clearer labeling of the date field as “Date of Birth/Date of incorporation” to minimize confusion. The structure of both forms has been simplified, with Form 134 tailored for government entities and Form 135 for non-government users, each capturing specific details and ending with a declaration section.
The objective behind these changes is to simplify form comprehension and completion, aiming to reduce errors and expedite application processing. The streamlined data collection is expected to foster voluntary compliance by making the process less intricate for taxpayers, ultimately leading to smoother and more efficient tax filing experiences.