USD INR ₹ 83.50
GBP INR ₹ 105.93
CAD INR ₹ 61.05
Articles

What is a Tax Deduction Account Number (TAN)?

Updated on August 08, 2019 03:51 pm
Envelope with TAN

In India, a Tax Deduction/Collection Account Number is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the Income Tax Act 1961. The tax deducted at source or withholding tax of India on payments made by assesses is deposited under TAN to enable the assesses who have received the payment to claim the tax deducted at source in their total income for the purpose of their annual tax returns.

TAN is applied through prescribed form (Form 49B) of the Indian Income Tax Law. A form can be completed on the NSDL website. or at the Tax Information Network Facilitation Center. These centers are set up by NSDL. NSDL acts as the intermediary appointed by the Govt. of India. No documents other than the proof of Identification and proof of address are necessary during the application process.

It is important to note that when applying online, the acknowledgement that gets generated during the application process must be sent to NSDL, along with the above documents of identification and address.

Quoting TAN is required in all Tax Deductions at source (TDS) or Tax Collection at Source (TCS) including on All TDS or TCS challans and certificates. Banks or similar organizations may not accept a TDS or TCS challan, certificate or return, if the TAN is not mentioned.

If you have failed to obtain a TAN or have not mentioned the same on the required returns or challans or certificates, the Income Tax Law of India prescribes a penalty of Rs. 10,000.

Structure of the TAN

The structure of the TAN is as follows: the first four letters are Alphabetic the next five letters are numeric characters and the last is an alphabet. Example – ABCD12345E. The first three characters represent the city or state where the TAN is issued. The fourth character represents the first character of the name of the deductor. The next five are numeric characters followed by an alphabetic character.

Non Resident & TAN

The TAN becomes important when a Non Resident Indian is selling his house property to a Resident Indian. The buyer has to ensure that the non resident has a PAN. If the non resident does not have a PAN, then the same has to be applied for.

As per recent changes in the income tax law, any property sale above Rs. 5 million attracts a 1% Tax deduction at source. The buyer has to deduct this 1% of the property value and deposit the same with the Govt. of India. While depositing the tax deducted at source, the same has to be deposited by mentioning the TAN of the buyer. The requirement of TAN is not mandatory if the property being purchased from a resident. But if the property has been purchased from a non resident the TAN becomes mandatory. After the sale of the property, the buyer has to issue a certificate of tax deduction in the format of Form 16A to the seller. To know more on how you be taxed for the funds you remit to India find out here.

A non resident can also buy a property from another non resident. In such a case, the requirement of TAN become very important. The buying non resident will have to deduct the TDS and deposit the same with the Govt. of India. This is because the transaction has to happen in Indian Rupees and cannot be done in foreign currency equivalent. In this case, the buyer has to pay the money from his Indian rupee account into another Indian Rupee account, thus the requirement of TAN.

Should a non resident buy a property from a resident, then again the provisions for TDS apply. When the non resident buys property from a resident, the payments have to be made in Indian Rupees and the rules of the tax deduction and the resultant TAN comes into force.

 46192 views
Rate article:
(5.0)
 
 
Money Transfer FAQ's
Related Articles
Remilty Welcome Back
Remitly Review 2024: Trusted Money Transfer Partner on CompareRemit

We are thrilled to announce Remitly as a trusted money transfer partner of CompareRemit. As a top choice for many immigrants, Remitly offers a blend of reliability, competitive rates, and user-friendly services. This quick review will guide you through the ins and outs of Remitly, highlighting key features, safety measures, and customer feedback.[Disclosure: This article contains affiliate link. If you click through and make a money transfer, CompareRemit may earn a commission at no additional cost to you.]What is Remitly?Attractive Offers From Money Transfer PartnersRemitly is a digital money transfer service designed to provide a fast, secure, and cost-effective way to send money internationally. Founded in 2011, Remitly has grown rapidly, serving millions of customers worldwide. The company’s mission is to tirelessly deliver on their promises to immigrants saving, spending, and sending money across the world.Whether you’re supporting family abroad or paying for services, Remitly simplifies the process with its intuitive platform.How Does Remitly Work?Sending money with Remitly is straightforward:Sign Up: Create an account on the Remitly website or download the Remitly app.Remitly Login: Log in to your Remitly account.Enter Transfer Details: Provide the recipient’s information and the amount you wish to send.Choose Delivery Method: Select how the recipient will receive the funds (bank deposit, cash pickup, mobile wallet, etc.).Complete Payment: Pay for the transfer using your preferred payment method (bank account, debit card, or credit card).Track Your Transfer: Use the tracking feature to monitor the status of your transfer.Remitly AppThe Remitly app is available for both iOS and Android devices, offering a seamless user experience. With the Remitly app, users can manage their transfers, track progress in real-time, and receive notifications. The app is designed to make international money transfers convenient and accessible at any time.Remitly ReviewsRemitly has garnered positive reviews from users worldwide. Customers praise the service for its transparency, ease of use, security, and competitive rates. According to various Remitly reviews, the platform excels in providing a hassle-free remittance experience with excellent customer support.Remitly RatesOne of Remitly's key advantages is its competitive exchange rates. For example, the Remitly USD to INR rate is often one of the most trusted choices. Users can check the current Remitly rate directly on the CompareRemit Compare Page before making a transfer to ensure they are getting the best deal.Is Remitly Safe? Is Remitly Legit?Safety is a paramount concern for anyone sending money internationally. Remitly uses multiple levels of security so you can send money home with peace of mind. So, is Remitly safe to send money? Yes, Remitly is both safe and legit, offering a secure platform for all transactions.Remitly Customer ServiceRemitly’s customer service is known for its responsiveness and helpfulness. You can contact Remitly customer support to help answer your money transfer questions or search in Help Center for answers in 15 languages, 24/7. You can also call or online chat with Remitly in English and Spanish, 24/7. This ensures that any issues or questions are promptly addressed.Remitly Money Transfer FeaturesSpeed: The time it takes to deliver your funds depends on various factors including which country or location you are sending money to. Remitly may offer two delivery speeds for sending our money – sometimes called Express  and Economy. For example when users sent money from USA to India, many said the money was delivered within minutes.Limits: How much you can transfer varies based on where you’re sending from, where you’re sending to, and your sending limit. Wondering how much you can send right now? View your current sending limit.Fees: Remitly’s fees are transparent and depend on the transfer speed and amount. Detailed fee information is available on the website. For example, when sending money from USA to Pakistan, you can get zero fees on transfers of 30,000 PKR or more.How Safe is Remitly Money Transfer?It’s safe to send money online with Remitly and they ensure your money transfers are secure, on time, and reliable. If your transfer doesn’t arrive on time, Remitly will refund your fees. Remitly uses advanced technology to protect your transactions and detect unusual account activity before it becomes problematic.How Long Does It Take for Remitly to Transfer Money?The time it takes for a transfer to be completed with Remitly varies. For example, when sending from US to India:Express Transfers: Usually completed in 5 minsEconomy Transfers: Typically take 3-6 business daysConclusionRemitly is a standout choice for international money transfers, offering a combination of speed, security, and competitive rates. Whether you are sending money to family or friends abroad, Remitly provides a reliable, efficient, and user-friendly platform. Explore Remitly on CompareRemit today to take advantage of their excellent services and ensure your money reaches its destination safely and quickly.For a complete and thorough review of Remitly, feel free to check out our Comprehensive Review and Guide. Frequently Asked Questions1. Is Remitly legit?Yes, Remitly is a legitimate and regulated money transfer service trusted by millions of users globally.2. How long does it take for Remitly to transfer money? The time it takes to deliver your funds depends on various factors including which country or location you are sending money to.3. How much does Remitly charge for transfers? Fees vary based on the amount sent and the delivery method. Remitly's platform clearly displays the fees before you complete the transaction.4. Is there a limit to how much money I can send with Remitly? Yes, Remitly has transfer limits which can vary by country and payment method. These limits are displayed on the Remitly platform.5. How safe is Remitly money transfer? Remitly employs advanced security measures to ensure your money and personal information are protected.

Send Money to Mexico
How to Send Money to Mexico in 2024

Sending money to Mexico has become an essential aspect of many people's lives, whether it's supporting family members, paying bills, or investing in opportunities back home. However, with numerous remittance services available, choosing the right one can be daunting. Fortunately, sending money to Mexico in 2024 is a straightforward process, especially with the help of comparison tools like CompareRemit. This guide will walk you through the steps to find the best remittance service and send money to Mexico efficiently and affordably.Why Use CompareRemit to Find the Best Way to Send Money?Before diving into the details of how to send money to Mexico, it's important to understand why using a comparison platform like CompareRemit is essential. With different remittance services offering varying exchange rates, transfer fees, and transfer times, finding the most cost-effective option can be challenging. CompareRemit simplifies this process by allowing you to compare all these factors in one place, ensuring you get the best deal tailored to your needs.Steps to Send Money to MexicoVisit CompareRemit: Start by going to the CompareRemit Compare Page.Enter Your Preferences: Enter the amount you want to send and choose your preferred transfer method (online, bank transfer, cash pickup, etc.).Compare Options: Compare the available remittance services based on exchange rates, transfer fees, and transfer times. Look for the best way to send money to Mexico that fits your specific requirements.Select a Service: Choose the service that offers the best rate and lowest fees for sending money to Mexico.Provide Recipient Details: Enter the recipient’s information, including their name, address, and bank account details if needed.Review and Confirm: Double-check all the details, including the exchange rate and total fees. Confirm the transaction if everything looks correct.Track Your Transfer: Most remittance services will provide a tracking number so you can monitor the status of your transfer through their app.Finding the Best Time to Send Money to MexicoTiming your transfer can significantly impact how much money your recipient gets. Exchange rates fluctuate, so sending money when the rates are favorable can make a big difference. CompareRemit offers real-time updates on exchange rates, helping you decide the best time to send money to Mexico. Furthermore, CompareRemit allows you to set a desired exchange rate and get notified once there is an exchange rate available that is your desired rate. This way you don’t have to do all the hard work of manually monitoring the offered exchange rates every day, let CompareRemit do all the hard work for you so you can maximize the amount your loved ones receive.Using Walmart to Send Money to MexicoAnother money transfer option many explore for sending money to Mexico is through the Walmart send money to Mexico service. Here is how it works:Visit a Walmart Store: Go to your nearest Walmart store.Use the Walmart2World Service: Head to the customer service desk and use the Walmart2World service, powered by MoneyGram.Provide Details: Provide the recipient’s name and location in Mexico. You’ll also need to provide your identification.Pay the Fee: Walmart charges a flat fee for money transfers. The fee varies depending on the amount sent.Track the Transfer: Once the transaction is complete, you’ll receive a reference number to track the transfer.Benefits of Sending Money with Walmart vs. Online TransfersBefore settling on either option to send money to Mexico, make sure you compare and contrast the two services: Walmart:Advantages: Convenient for those who prefer in-person transactions, fixed transfer fees, cash pickup available.Disadvantages: Requires a visit to a physical location, may have longer wait and transfer times.Online Transfers:Advantages: Can be done from anywhere, often faster, direct bank deposits.Disadvantages: Fees and exchange rates can vary, heavily dependent on internet access.Frequently Asked QuestionsHow can I send money to someone in Mexico?You can send money to Mexico using various remittance services. Start by visiting CompareRemit, compare the available options, and choose the best service based on rates, fees, and transfer times.Who pays best to send money to Mexico?CompareRemit helps you find the best-paying remittance services by comparing exchange rates and fees from different providers.What's the best app to send money to Mexico?The best app for sending money to Mexico depends on your needs. Use CompareRemit to find apps with the best rates, lowest fees, and fastest transfer times.Can you Zelle to Mexico?Zelle is typically used for domestic transfers within the United States and is not designed for international transfers like sending money to Mexico.How much does Walmart charge to send money to Mexico?Walmart charges a flat fee for money transfers, which varies depending on the amount sent. Check the Walmart2World service for specific fees.How much does it cost to send money to Mexico?The cost varies depending on the remittance service used, the amount sent, and the exchange rate. CompareRemit can help you find the lowest cost options.Is there a limit of money you can send to Mexico?While there is not a limit from the country of Mexico itself, limits on money transfers to Mexico depend on the remittance service you choose. Each service has its own limits, which you can check on CompareRemit.ConclusionSending money to Mexico doesn't have to be complicated. By using CompareRemit, you can easily find the best remittance service that offers competitive exchange rates, low transfer fees, and fast transfer times. Whether you are looking for the cheapest way to send money to Mexico, the best rate, or the convenience of online transfers, CompareRemit has you covered. Start your journey today and ensure your money reaches its destination efficiently and affordably.

Fast Money Transfer
Understanding Money Transfer Speeds

Sending money internationally is a vital task for many immigrants supporting their families back home. When finding the best money transfer service to send money with, you might be tempted to pick your remittance service provider based on whoever has the highest exchange rate. However, it is important that you look at more than one factor. Money transfer fees, the corridors the money transfer service offers, promotional offers, and money transfer speeds are just some of the factors you should look into before you decide on the best money transfer service for you. In this article, we will mainly be covering money transfer speeds. While the process seems straightforward, understanding transfer speeds is essential to ensure timely and efficient transactions. This article will delve into why money transfer services can't instantly transfer money, the factors influencing transfer speeds, and how to compare and choose the right remittance service using CompareRemit.Why Can’t Money Transfers Be Instant?Money transfers involve multiple steps and parties, which can cause the money transfer process to take some time. Here are some reasons why transfers aren’t always instant:Transfer Method: Bank transfers, wire transfers, and online money transfer services all have different processing times. Online services often provide the fastest way to send money.Payment Method: How you fund the transfer (bank account, credit card, debit card) can affect speed. Transfers funded by credit cards might be quicker but could incur higher fees.Transfer Amount: Larger transfers may undergo more rigorous checks, resulting in slower processing times compared to smaller amounts.Service Provider: Different remittance companies offer varying processing times. Some prioritize speed, while others focus on cost-effectiveness. It's essential to research and compare the transfer speeds of different providers.Verification Processes: Financial institutions must verify the sender’s and recipient’s information to prevent fraud and comply with regulations. This verification can take time.Bank Processing Times: Banks typically have set processing times, often limited to business hours and excluding weekends and holidays, which can delay transfers.Regulatory Compliance: Different countries have various regulations to prevent money laundering and illegal activities. Ensuring compliance with these regulations adds time to the transfer process.Intermediary Banks: Transfers that involve multiple banks or financial intermediaries can take longer as each institution has its processing times and procedures.Destination Country: The country to which you are sending money also plays a role. Transfers to countries with advanced financial infrastructure tend to be faster. For instance, sending money to India might be quicker compared to less developed regions.Time of Transfer: The timing of initiating the transfer also plays a role. Transfers initiated during business hours on weekdays tend to process faster than those initiated on weekends or holidays.Anti-Fraud Measures: To protect against fraudulent activities, money transfer companies implement rigorous security measures. While essential, these measures can slow down the processing of transactions.Preparing for Money Transfer SpeedsTo ensure your money reaches its destination as quickly as possible, consider the following tips:Plan Ahead: If you know you need to send money by a specific date, plan the transfer well in advance to avoid any last-minute delays.Verify Recipient Information: Ensure all recipient details are accurate to prevent any issues that might delay the transfer.Choose the Right Service: Use CompareRemit to evaluate different services based on their transfer speeds, fees, and reliability. This tool allows you to see all the factors that will influence your transfer experience.Consider Time Zones: Be mindful of time zones, as transfers initiated during business hours in the recipient’s country may be processed faster.Find the Fastest Way to Send Money Internationally with CompareRemitWhen selecting a remittance service, prioritize your needs and preferences. Getting the most for your money is important, but the highest exchange rate is not always the best answer. Getting a high exchange rate but having your money recipient wait days or even weeks to receive their money is not the best deal. Use CompareRemit's comparison tool to identify the fastest way to send money internationally. Compare the processing times offered by different providers to find the fastest way to send money abroad.

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App