What is a TAN?
A Tax Deduction and Collection Account Number (TAN) is a mandatory ten-character alphanumeric identifier provided by the Income Tax department to individuals or entities responsible for tax collection or deduction. According to Section 203A of the Income Tax Act, 1961, it is a legal requirement to include the TAN when filing returns related to Tax Deducted at Source (TDS) or Tax Collected at Source (TCS).
Who Should Apply for TAN?
Every individual or entity with the responsibility of deducting taxes at source (TDS) or collecting taxes at source (TCS) must acquire a TAN. It is a legal requirement to include the TAN in all transactions involving TDS or TCS, which encompasses electronic TCS/TDS returns, TDS/TCS payment challans, and TDS/TCS certificates.
Importance of TAN Number : Any person required to obtain a TAN will face difficulty filing tax returns when he/she does not apply for it. Failure to quote the TAN number in returns or documents will result in a penalty of Rs.10,000. TAN should be quoted in the following documents:
- Statements/returns for TCS or TDS.
- Payment challans for TDS or TCS.
- Presenting TCS or TDS certificates.
- Handling a diverse range of forms related to income tax.
Get yourself TAN registered
Entities or individuals who must withhold taxes when making particular payments, such as salaries or rent, are obligated to obtain a TAN number. With Auditbuzz support, you can initiate the TAN registration process for your business, ensuring a swift and hassle-free experience. Whether you need to acquire a new TAN or request corrections to an existing one, Auditbuzz is here to assist you in achieving these objectives.
Documents required for TAN
- PAN of applicant
- Personal Information of Deductor like Name, Address, Contact Details, etc,
- Incorporation certificate of companies
- Digital Signature Certificate (DSC) of Responsible person of Company
- Details of Responsible Person
TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric code required by entities and individuals responsible for deducting or collecting tax at the source.
Any entity or person responsible for deducting or collecting taxes at the source, including businesses, employers, and individuals, must obtain a TAN.
TAN is essential to ensure that taxes are correctly deducted or collected and deposited with the government. It helps in tracking tax payments and reporting.
No, TAN is not linked to a specific bank account. It is linked to the entity or individual responsible for tax deduction or collection.
No, you need to have a PAN to apply for a TAN as your PAN will be used to track your TAN-related transactions.
Yes, you can update or modify TAN details by submitting a request to the TAN issuing authority.
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