Tax Deduction and Collection Account Number (TAN) is a 10 digit number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. Enactment of provisions of Tax deducted at source(TDS) has been made by government to check that income actually disclosed by deductee under respective heads are in transparent manner and justify the figures of 26AS which have directly reported by deductor. With the enactment of TDS, responsibility for paying tax is diversified and goverment have widen their collection of tax base in advance which couldn’t be covered under the provisions of advance tax. The person deducting the tax at source is required to deposit the tax deducted by quoting their TAN number. Form 49B is the application form which is to be filled for allotment of TAN with required documents. After allotment of TAN, entities are reuired to quote TAN beforing filing TCS/TDS returns.
Entities Under the purview of TDS:
Government has specified a limit beyond which deduction of tax is mandatory on specified services. Business entities which consist of proprietorship, partnership and companies must deduct tax at source after amount of payment exceeds the limit specified in respective sections of TDS. However salaried persons are exempt for the purpose of deduction of taxes. Examples of some services which are in the ambit of TDS: Salaries, Commission/Brokerage, Professional/Technical Services etc.
- TAN Registration for business organizations (Inclusive of any Government fees / charges)
- TAN Registration along with 1 year TDS Return filing (per type of Return)
- TAN Registration along with 1 year TDS Return filing (all types of Return)