NSDL (National Assets Depository Limited)

National Assets Depository Limited(NSDL) is a financial institution that was established to keep securities such as bonds, shares, and so on in the form of physical or non-physical certificates, i.e. in dematerialized format. These securities are maintained in depository accounts, which are similar to money in bank accounts. It allows for the quick transfer of securities since ownership is transferred merely by book entries. India's capital market, which has been around for almost a century, has always been quite active. However, owing to paper-based settlements, it had certain flaws, such as poor delivery, delayed transfer execution, and so on. To address these concerns, the Depositories Act of 1996 was enacted and went into effect on September 20, 1995.

Securities are financial assets that may be traded, that is, purchased and sold on the financial market. Equity, fixed-income securities, equity warrants, common stocks, and other financial securities are examples. Here we have discussed the several benefits of TIN NSDL portal and the services provided by the National Assets Depository Limited(NSDL). But, let us first understand the major components of the TIN NSDL portal.

Components of TIN NSDL Portal

A TIN system is largely composed of two major subsystems:

  • an Electronic Return Acceptance and Consolidation System (ERACS)
  • an Online Tax Accounting System (OLTAS)

ERACS is primarily intended to assist in the preparation of Annual Information Reports, TDS, and TCS, with information supplied by a taxpayer processed by ERACS and transmitted to the Central System. It is a web-based tool for uploading electronic returns of the Tax Deduction at Source (TDS), Tax Collection at Source (TCS), and Annual Information Return (AIR) to the TIN central system.

OLTAS, on the other hand, is largely utilized by the department to get information about tax deposits made around the country. OLTAS processes the tax collected by different tax collection branches in India and sends it to the Central System for review by authorities.

Benefits of NSDL TIN 

  • No Bad Deliveries

In the instance of a paper-based transaction, the buyer did not have the option of inspecting the asset's quality before purchasing it. Hence there was a risk involved. It has minimized the danger since securities are maintained in dematerialized form, eliminating the possibility of poor delivery.

  • Elimination of Risks Related to Physical Certificates

Physical certifications have a high level of risk, including the possibility of theft, wear and tear, mutilation, and destruction. There is no such danger in the depository system because these certificates are now kept in Demat form. It also saves money on the expense of providing duplicate certificates.

  • Stamp Duty

While stamp duty was required in a previous way, it is no longer required when securities are transferred through depositories. This regulation also applies when transferring stock shares, debt instruments, or mutual funds.

  • Immediate Transfer and Registration of Securities

In a depository system, once security is credited to an investor's account, he legally owns that security. This is in contrast to the physical system when he/she was required to send them to the business registration to change the ownership, which used to take a long time. It also exposed the investor to the danger of their being lost in transit and the potential cost of a transfer delay.

  • Faster Settlement and More Liquidity

Settlement takes place on the second working day after the trading day, i.e. T+2 rolling settlement. This allows for faster transaction turnover and enhances liquidity with investors.

  • Faster Disbursement of Non-cash Corporate Benefits

National Assets Depository Limited permits direct credit of non-monetary corporate advantages such as bonus shares, right shares, and so on to the investor's account. It allows for the speedy and secure transfer of securities, without the possibility of certificates being lost in transit.

  • Brokerage

Brokerage costs are reduced since securities are transferred through depositories, which reduces back-office paperwork, the effort necessary on the part of brokers, and the risk they incur as introducers. As a result, brokerage fees imposed by brokers are lowered. It benefits both investors and brokers, making it a win-win situation for both.

  • Reduced Paperwork 

Because everything is available online and at the press of a few buttons, online transactions of securities lead to a decrease in paperwork. This eliminates the need to keep a plethora of transactional paperwork.

  • Status Reports

Periodic statements of accounts are supplied to investors, including the specifics of transactions conducted and the status of holdings, permitting improved controls.

  • Ease of Changing Investor Details

In the past, if an investor's details changed, such as his communication address, he had to go through the time-consuming procedure of changing it in each firm in which he had invested. This procedure has been streamlined so that the investor just has to notify his Depository Participants (DPs) of the change and provide the necessary documentation. The data is instantly updated everywhere, and there is no need to notify each organization individually.

  • Simplified Transmission Process

Shares held in Demat form may be sent by simply giving relevant documentation to DPs, and the transfer is reflected in the database of all firms where the investor is listed as a registered owner of securities. As a result, the conventional practice of the nominee or joint holder having to personally interact with all of the firms in which he has shared is no longer necessary.

  • Simplified Process for Selling Securities Held on Behalf of Minor

The guardian identified as being responsible for the minor is not necessary to get previous court approval before selling securities held in Demat form acquired on behalf of the minor.

TIN NSDL PAN Application Process

Online applications for TIN NSDL PAN Cards are available for the issuance of a new PAN as well as the reprint or correction of NSDL PAN card info. The following is a step-by-step approach for each of the online applications for a Permanent Account Number, or PAN.

Step 1: To apply for a PAN card online, go to www.onlineservices.nsdl.com and click on the top tab ‘Apply New PAN Card' on the top left-hand side of the website.

Step 2: After clicking it, an application form will show on the screen.

Step 3: Fill out the form with the following information:

Step 4: Application Type

Step 5: Select a category (the applicant must select one of the following: individual/association of persons/body of individuals/company/trust/limited liability partnership/firm/government/Hindu undivided family/artificial juridical person/local authority).

Step 6: Create a title

Step 7: Enter your last name, first name, and middle name.

Step 8: Enter your date of birth.

Step 9: Email ID.

Step 10: Mobile Number.

Services Offered by TIN NSDL

Primary Services

Secondary Services


When filing TDS or TCS returns, certificates, or payment challans, an individual must have a Tax Deduction and Collection Account Number, or TAN. The website provides individuals with a variety of TAN-related services, such as online NSDL PAN Card application, status update checking, reprint of TAN letter, duplicate TAN, and so on.


A Permanent Account Variety is required for all taxpayers, and the government requires it to be quoted in several transactions. Individuals and companies can apply for a PAN Card on the TIN NSDL website, with the full process accessible with a single click. Aside from applying for a PAN Card, users may also check the Pan Card application status, make adjustments or edits to an existing PAN Card, request for PAN Card cancellation, and obtain all relevant information on the platform.


TDS or tax deducted at source applies to payments made by businesses or individuals to third parties, and this tax must be remitted with approved tax collecting authorities. The TIN NSDL website saves such entities time and effort by providing them with an online platform to post their returns. Entities can upload their TCS returns online in the same way.

Annual Information Return (AIR)

All high-value transactions must be accompanied by an Annual Information Return, according to the rules of the Income Tax Act. Entities who need to register their AIR can do so using the website, which also provides additional services like registration, NSDL PAN status, altering or renewing the Digital Signature Certificate, and so on.


AIN Registration

Account Office Identification Numbers, or AINs, are required for some Account Offices. Such entities can apply for an AIN online at the official website. They can also browse or download the Book Identification Number (BIN), update their information, and upload Form 24G online through the site.

E-payment of taxes

The website allows taxpayers to pay their direct taxes online using the appropriate forms. Through this website, businesses may pay TDS on the property, income tax, corporation tax, wealth tax, excise duty, and other direct taxes. A secure way of payment is permitted, allowing taxpayers to pay their dues without fear.

Status of tax refunds

This website allows taxpayers to verify the status of their tax returns. To examine the refund status for that year, input your PAN Card data and the assessment year, which will help you determine how much refund you need.

Online PAN Card verification

Certain businesses, like banks, insurance firms, NBFCs, credit organizations, and so on, will be required to validate individuals' NSDL PAN Cards, which may be done using this portal. Entities who want to validate their NSDL PAN Card can do so online by registering and following a few easy procedures.

E-Return intermediary

Intermediaries who submit income tax returns on behalf of taxpayers may now do so online, due to E-Return Intermediary service. This provision can be used by authorized entities to make the work of submitting tax returns easier for those affected.

NSDL TIN - Security and Safety Measures

Since a large sum of money is involved in the execution of transactions at National Assets Depository Limited, it is critical to take the appropriate steps or precautions to ensure safety. Various safety precautions are used in the depository system for investors holding securities, including:

  • SEBI's DP selection procedures ensure that only respectable firms are chosen as depository participants.
  • Transaction recording at the central server: Every transaction processed by National Assets Depository Limited is stored on its central server and mirrored in the databases of business partners.
  • Control over account entries: DPs are only permitted to perform debit or credit entries in the concerned account after receiving verified client instructions.
  • Periodic Account Statements: DPs are required to produce periodic account statements to investors in order to improve control.
  • Data security: Data exchanges between NSDL and its business partners are encrypted using cutting-edge technology.
  • Periodic checking/inspection: It conducts frequent audits of depository participants and Registrar & Transfer (R&T) Agents.
  • Investor Grievance: The responsible company partner must resolve all investor issues and grievances. If the business partner is unable to remedy the issue, the individual may approach NSDL directly.
  • Insurance Coverage: To safeguard investors from losses caused by omissions, errors, or the negligence of DPs, among other things, it protects and compensates for such losses.
  • Depository Operations Certification: It has introduced a certificate program (NCFM certification) in depository operations for DPs. This course must be completed by at least one person from each DP. This is done to ensure that each DP branch has at least one person who is knowledgeable about depository systems and can explain them to local investors as needed.
  • Computer and communication infrastructure: NSDL and its business partners employ high-end computer hardware and software that adhere to industry standards.
  • Random counter checks: It does random checks by sending statements to a random list of investors, who compare them to the statements provided by DP and identify any discrepancies.
  • Disaster Recovery: It maintains a disaster recovery site to ensure that data is available 24 hours a day, seven days a week, even after a natural or man-made disaster. This site is identical to the mainframe computer and runs when the main computer fails.
  • Periodic Review: The entire hardware, software, and communication network are examined on a regular basis to verify its effectiveness and security.
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