Guidance Needed: Surrendering TAN/PAN, Income Tax

[Ramanathan Seshan]

Dear Experts,

Can someone guide me on the procedure for surrendering the TAN and PAN of a company that has merged/ company closed and strike off from ROC records? Specifically, I’d like to know:

• What is the step-by-step process for surrendering TAN and PAN after a merger?

• What is the eligibility or criteria for making this application?

• Which authority should the application be submitted to, and which form should be used?

• Is there a specific time frame within which the application must be filed?

• How long does it usually take to receive the surrender order or confirmation?

Regards,

S Ram

Posts / Replies

[YAGAY andSUN]

Step-by-Step Process for Surrendering TAN and PAN After a Merger or Strike Off

When a company is merged, closed, or struck off from the ROC (Registrar of Companies) records, it is necessary to surrender its Tax Deduction and Collection Account Number (TAN) and Permanent Account Number (PAN), as they are no longer needed for a company that no longer exists as a legal entity. Here’s a detailed guide on how to go about the process:

Step-by-Step Process for Surrendering TAN and PAN After a Merger or Strike Off:

1. Surrender of PAN (Permanent Account Number):

To surrender the PAN of a company that has merged or been struck off:

• Step 1: Ensure the company is closed: You need to ensure that the company is officially closed or has been struck off from the records of the Registrar of Companies (ROC). This means that the company no longer exists as a legal entity and has no liabilities.
• Step 2: File the Final Return: Before applying for the surrender of PAN, the company must file its final income tax return (if any pending) up to the date of closure or merger. The return should be filed for the last accounting period of the company, and any outstanding tax liability should be cleared.
• Step 3: Submit PAN Surrender Application:
  • The application for surrender of PAN can be made to the Income Tax Department through the NSDL e-Gov website.
  • Fill out the Form 49A (used for PAN application), where you’ll mention the company’s PAN, and provide the reason for surrender, such as merger or strike-off.

Documents required:

• • A copy of the certificate of incorporation of the company, showing that the company is closed or struck off.
  • A copy of the order of the ROC (if struck off).
  • A copy of the final income tax return (if applicable).
  • A letter of surrender.

Where to Submit:

• • Income Tax Department (ITD) via the official PAN application/surrender portal.
  • Alternatively, the surrender application can be submitted offline to the Income Tax Circle under whose jurisdiction the company was filing returns, with the necessary documents.

2. Surrender of TAN (Tax Deduction and Collection Account Number):

The procedure for surrendering TAN after the merger or strike-off is as follows:

• Step 1: Ensure No Pending Liabilities: Just like with PAN, the company must ensure that there are no pending tax deductions or collections and that all TDS returns have been filed up to the date of closure or merger.
• Step 2: File Final TDS Return: Before surrendering the TAN, ensure that the final TDS return for the last accounting year has been filed, which may involve providing details of any pending TDS.
• Step 3: Surrender TAN:
  • Form 24 is used for the surrender of TAN. This form is available on the official NSDL TIN website.
  • Provide the company’s TAN and the reason for surrendering (i.e., the company’s closure or merger).

Documents required:

• • A copy of the certificate of incorporation or ROC order showing the company’s closure.
  • A copy of the final TDS return (if applicable).

Where to Submit:

• • TAN surrender application should be submitted through the NSDL TIN portal.

3. Ensure All Pending Liabilities are Settled:

Before surrendering the PAN and TAN, ensure that all tax-related obligations (such as TDS/TCS) are cleared. If there are any outstanding liabilities, these must be settled before the surrender process.

Eligibility and Criteria for Surrender Application:

• The company should be dissolved, closed, or merged, and removed from the ROC records.
• The company must have filed its final income tax return (if applicable) and cleared all tax liabilities before applying for surrender.
• No further business activity should be carried out under the name of the company that is to be struck off or merged.

Authorities and Forms:

• PAN Surrender:
  • Application for surrender is submitted to the Income Tax Department (via NSDL e-Gov portal).
  • Form 49A for PAN.
• TAN Surrender:
  • Application for surrender is submitted via the NSDL TIN portal.
  • Form 24 for TAN.

Time Frame for Filing the Application:

• PAN Surrender Application: You can file the application immediately after the company is officially dissolved or merged. There is no specific time frame stipulated, but it is advised to submit it as soon as the company’s tax obligations are cleared.
• TAN Surrender Application: Similar to PAN, TAN should be surrendered immediately after the company is dissolved, and all TDS filings have been completed. Again, there is no statutory time limit, but it is recommended to complete this process without unnecessary delay.

Time Frame for Receiving the Surrender Order/Confirmation:

• PAN Surrender:
  • Once the application is submitted, the Income Tax Department will process the surrender. The processing time usually takes around 15 to 30 working days after the application is submitted.
• TAN Surrender:
  • For TAN surrender, once the application is filed, you will generally receive confirmation or acknowledgment within 7 to 15 working days from NSDL TIN.

Additional Considerations:

• Ensure that the final returns (income tax and TDS returns) are filed, and the company has no pending dues before applying for surrender.
• The company should not be operational anymore, and there should be no reason for continuing the PAN or TAN.
• Keep acknowledgments and receipts of the submission of the surrender applications, as they will serve as proof for future reference.

Summary of Key Steps:

1. File final income tax return (if applicable).
2. File final TDS return (if applicable).
3. Submit PAN surrender application through the Income Tax Department via Form 49A.
4. Submit TAN surrender application through NSDL TIN via Form 24.
5. Provide necessary documents like the certificate of incorporation, ROC order, and final tax returns.
6. Wait for acknowledgment/confirmation from the relevant authority.

By following these steps, you can successfully surrender the PAN and TAN of a company that has merged or been struck off from the ROC records.

***

[Ramanathan Seshan]

Dear Yagay-sir,

Thanks for your detailed response. Form 24 shows salary related. Can you please check and confirm the Form number for cancellation of TAN.

Regards,

S ram

[YAGAY andSUN]

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12649