Introduction

The Tax Deduction and Collection Account Number (TAN) is a mandatory 10-character alphanumeric identifier issued by the Income Tax Department of India to individuals and entities responsible for deducting or collecting tax at source. TAN is applied for using Form 49B, either through online or offline modes. However, not all applications are accepted immediately. In certain cases, the application may be rejected due to procedural or technical errors. Understanding the procedure for TAN form rejection is essential for applicants to rectify mistakes and ensure successful allotment. This article provides a detailed explanation of how TAN form rejections are handled and how applicants can respond appropriately.

Causes Leading to TAN Form Rejection

A TAN application may be rejected for several reasons. Common causes include incomplete or incorrect information in Form 49B, invalid or mismatched supporting documents, incorrect category selection (e.g., applying as an individual when it should be a company), mismatch of PAN details, or non-submission of physical acknowledgment after online application (when not e-signed). Other reasons include illegible handwriting in offline forms, unsigned forms, or discrepancies between the application data and official records.

Communication of Rejection by Protean (NSDL)

Once an error is detected during processing, the application is marked for rejection. The applicant is notified by Protean eGov Technologies Limited (formerly NSDL)—the designated intermediary for TAN processing. This communication is usually sent via email, SMS, or physical letter to the contact details provided in the application. The rejection communication includes a reference number, date of application, and the reason(s) for rejection, along with instructions on corrective steps.

Impact of Rejection on Application Status

When a TAN form is rejected, no TAN is allotted, and the application is marked as closed or incomplete in the TAN system. The application fee is not refunded, as it covers processing costs. Applicants are required to submit a fresh application or follow the resubmission process, depending on the nature of the rejection. The rejected form cannot be reused or corrected directly in most cases, unless explicitly mentioned in the rejection notice.

Corrective Action After Rejection

After receiving a rejection notice, the applicant should carefully review the reason provided. If the error was clerical or documentation-related, they must make the necessary corrections and resubmit Form 49B with the updated details. In case of online applications, a new acknowledgment form must be printed and submitted again if required. All supporting documents, such as proof of identity, PAN card (if relevant), and authorization letters (for entities), must be validated and resubmitted.

Tracking the Re-application

Once the new or corrected TAN form is submitted, applicants can track the status using the acknowledgment number on the Protean-TIN website under the TAN application status section. The system updates the status as “Under Processing,” “Accepted,” or “Rejected” depending on verification. If the form is accepted, the TAN is allotted and sent via email and post. If the second application is also rejected, the process must be reviewed more carefully with professional assistance, if needed.

Avoiding Future Rejections

To avoid TAN form rejection, applicants must ensure that:

• Form 49B is filled with accurate, updated, and complete information.
  
• The category of deductor is correctly selected (e.g., Government, Company, Individual).
  
• Supporting documents are clear, self-attested, and consistent with the form details.
  
• Online forms are either digitally signed or followed by timely submission of physical acknowledgment to the Protean office.
  
• The correct jurisdiction and official address are used to avoid jurisdiction mismatch.
  

Conclusion

TAN form rejection is a manageable but avoidable event that occurs due to procedural lapses or documentation errors. The Income Tax Department, through Protean, provides transparent communication and a structured system for resubmission. By understanding the reasons for rejection, following the required corrective steps, and resubmitting accurate documentation, applicants can successfully obtain their TAN and fulfill their statutory obligations. Taking care at the initial application stage is the most effective way to avoid rejections and ensure smooth processing.

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