Purpose: TAN is primarily used for the deduction and collection of taxes at source. Entities responsible for deducting or collecting tax at source need to obtain a TAN from the Income Tax Department.
Mandatory Requirement: Any person or entity liable to deduct tax at source (TDS) or collect tax at source (TCS) is required to obtain a TAN. This includes individuals, companies, firms, government offices, and other entities making payments subject to TDS/TCS provisions.
Identification: TAN serves as a unique identification number for entities responsible for deducting or collecting tax at source. It helps in tracking tax transactions and ensuring compliance with tax laws.
TDS/TCS Returns: Entities holding a TAN must file TDS/TCS returns periodically, providing details of tax deducted/collected and deposited with the government. TAN is used for filing these returns and facilitating communication with the tax authorities.
TDS/TCS Payments: TAN is used for making payments of tax deducted/collected at source to the government. It ensures proper identification of the taxpayer and facilitates accurate record-keeping of tax transactions.
Penalties for Non-Compliance: Failure to obtain a TAN or non-compliance with TDS/TCS provisions can attract penalties under the Income Tax Act, 1961. Penalties may also be imposed for late filing of TDS/TCS returns or non-payment of taxes deducted/collected at source.
Validity: Once issued, a TAN is valid for the lifetime of the entity unless surrendered or cancelled. However, entities are required to comply with ongoing TDS/TCS obligations as per tax laws.
Nature of Deduction/Collections:
Details of Deductees/Collectees:
Statement of Deductions/Collections:
Compliance with TDS/TCS Provisions:
Verification and Certification:
Record Maintenance:
Tax Deposits:
Audits and Assessments:
TAN Certificate: This is the official document issued by the Income Tax Department of India upon successful application for a TAN. It contains the following information:
TAN Application Form: This form is used to apply for a TAN and typically includes details such as:
Acknowledgment Receipt: A proof of submission provided by the Income Tax Department upon receiving the TAN application. It contains a unique acknowledgment number, date of submission, and other relevant details.
TAN Allotment Letter: This letter confirms the allotment of the TAN and provides instructions on its usage, such as quoting the TAN in TDS/TCS returns, challans, and other relevant documents.
What is TAN?
TAN stands for Tax Deduction and Collection Account Number. It is a unique 10-digit alphanumeric code issued by the Income Tax Department of India to entities responsible for deducting or collecting tax at the source.
Who needs to apply for TAN?
Any entity, including individuals, companies, firms, trusts, or organizations, that are required to deduct or collect tax at source as per the Income Tax Act, 1961, needs to apply for a TAN.
How to apply for TAN?
You can apply for TAN online through the NSDL-TIN website or at authorized TIN facilitation centers (TIN-FCs) across India. The application process typically requires filling out Form 49B and submitting it along with the necessary documents and fees.
What are the documents required for TAN application?
Documents such as proof of identity, proof of address, and PAN (Permanent Account Number) are generally required for TAN application. The specific requirements may vary based on the type of entity applying for TAN.
. Is there a fee for obtaining TAN?
Yes, there is a prescribed fee for obtaining TAN. The fee may vary depending on whether the application is made online or offline and the mode of payment chosen.