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What is a Tax Deduction Account Number (TAN) ?
What is a Tax Deduction Account Number (TAN) ?
A Tax Deduction Account Number (TAN) is a 10-digit alphanumeric code issued by the Indian Income Tax Department. It is mandatory for any person or entity responsible for deducting tax at source (TDS) or collecting tax at source (TCS) under the Income Tax Act.
Why is a TAN Required?
Why is a TAN Required?
TDS/TCS Compliance: A TAN is essential for ensuring compliance with TDS/TCS regulations. It helps in tracking and reporting the tax deducted or collected.
Identification: It uniquely identifies the person or entity responsible for deducting or collecting tax.
Efficient Tax Administration: A TAN facilitates efficient tax administration and ensures accurate reporting of tax liabilities.
Who Needs a TAN?
Who Needs a TAN?
Employers: Those deducting TDS on salaries and other payments to employees.
Businesses: Entities deducting TDS on payments made to contractors, freelancers, or suppliers.
Government Departments: Government agencies deducting TDS on payments made to contractors or suppliers.
Individuals: Individuals who are responsible for deducting TDS on rental income or other income.
How to Obtain a TAN?
How to Obtain a TAN?
You can apply for a TAN online or offline. The necessary documents may vary depending on your status (individual or entity).
Key Points to Remember
Key Points to Remember
A TAN is a lifelong identifier.
It is mandatory to quote your TAN in TDS/TCS returns and other related documents.
Failure to obtain or quote a TAN can result in penalties and interest.
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