In India, Tax Deduction Account Number (TAN) is a must-have for every business or individual responsible for deducting or collecting tax at source. Issued by the Income Tax Department, TAN is a unique 10-digit alphanumeric identifier that plays a crucial role in all TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) related transactions.
Non-compliance with TAN requirements can lead to heavy penalties, so understanding its purpose and registration process is essential for smooth and legal tax operations.
TAN (Tax Deduction and Collection Account Number) is a unique code issued by the Income Tax Department to individuals and entities responsible for deducting or collecting tax at source. This number must be quoted in all TDS/TCS returns, challans, and certificates to ensure transparency and accountability in tax collection.
Tax Deductors
Businesses, firms, or individuals who deduct TDS on payments such as salaries, contractor fees, or rent exceeding Rs. 1,80,000 annually.
Salaried Individuals
No TAN required for employees receiving salary as tax is deducted by the employer.
Company Branches
Branch offices that undertake payments requiring tax deductions.
Non-Profit Organizations
NGOs making payments beyond the prescribed threshold.
As per Section 203A of the Income Tax Act, 1961, every person responsible for deducting or collecting tax must obtain a TAN and quote it in:
Without a valid TAN, businesses face penalties and difficulties in depositing TDS/TCS payments, as banks will reject payments without TAN details.
Pro Tip: Include your PAN in the application to avoid delays and ensure smooth processing.
Navigating tax registrations can be confusing and time-consuming, but The Consulting Crew makes it simple, quick, and hassle-free. Our expert team handles everything from document preparation to application submission — so you don’t have to worry about complex tax formalities.
Lorem ipsum dolor sit amet, consectetur adipiscing elit.