Tax Deduction and Collection Account Number (TAN) registration is a 10 digit alphanumeric number that is required to be obtained by all those who are responsible for deducting and collecting taxes on the behalf of the government. According to Section 203A of the Income Tax Act, 1961, it is mandatory to quote the TAN registration number. It is allotted by the Income Tax Department on all TDS returns. Individuals having a proprietorship business needs to obtain TAN registration and has to deduct tax at the source, whenever it is required. It is not mandatory for salaried persons to obtain TAN registration. the government of India has made the process of TAN registration application easier and applications can be filled online. IT department has introduced a search facility on their official website, this facility can be used to search the names of the deductors and old TAN applicants to find their new TAN registration.
• TAN is used for deductions such as salary, interest, and dividends. While depositing tax, the challan type 281 should be used and the 10 digit TAN number should be mentioned correctly along with the name and address of the deductor. It is mandatory to quote TAN in documents like TDS Return, TCA Return, challans for payment of TDS/TCS, or any other prescribed documents.
• Section 194IA provides for deduction of tax at source from payment on transfer of certain immovable property other than agricultural land.
Section 194-IB provides for deduction of tax at source at the rate of 5% from payment of rent. The tax shall be deducted if the rent paid or payable exceeds Rs. 50,000 per month or part of the month.
• Section 194M provides for deduction of tax at source at the rate of 5% on the sum paid to a resident on account of contractual work, brokerage, or professional fees, by any individual or a HUF, if the aggregate of such sum exceeds Rs. 50 lakh in a financial year.
• You have to face penalties for not obtaining the tax registration. You will be charged Rs. 5000 or Rs. 200 per day whichever is higher.
Any of the following who is liable to deduct TDS/TCS:
✔ Any Individual
✔ Any Partnership Firm
✔ Any company registration
✔ Any LLP registration
✔ Any HUF registration
✔ Any OPC registration
✔ Any foregin national who has income due in India
The first step is to login on the TRACES website, click on ‘Register as New User’ tab and select ‘Deductor’ as the type of user and click on proceed. Now provide ‘TAN Number’ in the respective allocated tab followed by captcha code to proceed further. Financial Year, Form Type, and Quarter fr which KYC required will be auto entered. Enter Token Number of the Original Statement only, corresponding to the financial year, quarter and Form type displayed. Please don’t copy/ paste the data.
Deductor is required to fill organization details such a s’Category of Deductor, PAN of Deductor, PAN of Authorised person and Date of Birth of Authorised Person etc. to proceed further. Fill in the correct Primary mobile number and E-mail ID to receive the activation link and codes, as user needs to activate the account within 48 hours of registration.
Deductor is required to create his/her user id along with the password to proceed further. Deductor details can be seen on the confirmation screen, deductor can still edit the details if required or else can click on ‘Confirm’ for successful registration on TRACES website.
After successful activation of account within 48 hours of registration, user will be able to login on TRACES website by entering the user id, password, TAN of the deductor and the verification code.
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All those persons who are required to deduct/ collect tax at source on behalf of the Income Tax Department are required to apply for and obtain TAN. Contact us Now.
If TAN has already been allotted for the purpose of tax deduction there is no need to obtain separate TAN for the purpose of tax collection at the source.
You can check the status by accessing the NSDL e- Gov - TAN website at the ‘Status track’ option and quoting your unique 14-digit acknowledgment number after three days of your application date.
Yes, according to section 139AA of the Income-tax Act, every person who has a PAN as on July 1, 2017, is required to link PAN with the Aadhar Card.
Yes, in this case, the name and location of the branch or the designation of the person responsible for deducting or collecting tax, should be clearly mentioned in the application for allotment of TAN.
An allotment letter is dispatched by NSDL e- gov at the provided address in form 49B.