Legal Darbar offers the TAN (Tax Deduction and Collection Account Number) registration service which is a required 10-digit alphanumeric number provided by India’s Income Tax Department to organizations responsible for deducting or collecting tax at source (TDS/TCS). Businesses, corporations, and individuals are required to deduct TDS on salaries, contractor payments, rent, professional fees, and other expenses. TAN must appear on all TDS-related transactions, returns, challans, and interactions with the tax department. Failure to get a TAN may result in penalties. TAN registration can be completed online via the NSDL website or offline using Form 49B. It enables tax compliance and efficient processing of TDS payments. legaldarbar.com
How Do I Apply for TAN Registration with Legal darbar?
- Online Application: In online You should use the The National Securities Depository website (www.tin-nsdl.com).
- Offline Application: In offline Submit Form 49B to a Pan facilitating center.
- Processing Time: Typically issued within 7-10 days.
- Fee: The fee is Around ₹65 + GST for TAN application.
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Legal Darbar will tell you about the Importance of TAN Registration:
1. Mandatory for TDS/TCS transactions: Required to deduct Tax Deducted at Site (TDS) and Tax Collected at Source (TCS) on particular payments such as salary, rent, contractor fees, and so on.
2. Legal compliance: Non-compliances with TAN requirements may result in penalties under Section 272BB of the Income Tax Act (₹10,000 for failure to obtain or quote TAN).
3. Required for TDS Filings and Payments: A TAN is required to submit TDS returns (Form 24Q, 26Q, etc.) and deposit deducted tax with the government.
4. Refunds and credits are processed smoothly: It allows employees, merchants, and other receivers to collect TDS credits when filing their income tax returns.
5. Required for Certain Business Transactions: Required when issuing TDS certifications (Form 16, 16A) and filing tax-related paperwork. TDS payments cannot be denied without a TAN be processed and after leading to financial and legal issues.
6. Important for Government Contracts and Organization Operations: Many government awards and contracts require organizations to have a valid TAN to ensure tax compliance. legaldarbar.com
Legal Darbar will suggest that who must obtain TAN Registration:
1. Employers who deduct TDS on staff salaries: It Requires a TAN. who deducts TDS on employee salaries must have TAN.
2. Businesses and businesses Deducting TDS/TCS: Firms, LLPs, private/public businesses, and sole proprietorships that will deduct TDS on rent, contractor fees, professional fees, or interest must get TAN.
3. Banks and Financial Institutions: Banks that deduct TDS on fixed deposits (FDs), interest payments, or dividends requires TAN.
4. E-commerce Platforms & Online Marketplaces: E-commerce operators who deduct TDS under Section 194-O on payments to merchants must have a TAN.
5. Government departments and authorities: It will deduct TDS on supplier payments, contracts, and salaries must obtain by TAN.
6. Entities Collecting TCS: Businesses collecting Tax Collected at Source (TCS) on specific goods or services require a TAN.
Legal Darbar will give the best benefits for TAN registration:
1. Legal Compliance with TDS and TCS Regulations: Required for TDS/TCS – TAN is necessary for deducting and collecting tax at source (TCS) under Section 203A of the Income Tax Act. It avoids penalties.
2. Enables Filing of TDS/TCS Returns: TAN is necessary to file quarterly TDS and TCS returns (Forms 24Q, 26Q, 27Q, 27EQ). It supports the correct tax reporting and claim adjustments.
3. Smooth Processing of Salary and Supplier Payments: Ensures quick TDS deduction on employee salaries, contractor payments, rent, and other expenses, which prevents tax issues. It helps businesses avoid tax liabilities due to non-deduction of TDS.
4. Allows Easy Tax Refunds and Credit for Deductees: It will Deduct TDS is credited to the recipient’s PAN. TDS credits can be claimed while filing an income tax return, ensuring simplicity for employees, contractors, and suppliers.
5. Essential for Businesses and Organizations: Companies, partnerships, LLPs, and government bodies must pay TDS on payments, and the TDS deductions are required by banks, educational institutions, hospitals, and non-governmental organizations (NGOs).
6. Recognition and Transparency in Financial Transactions: TAN monitors and validates all TDS payments to reduce tax fraud. It provides a transparent mechanism for organizations’ tax compliance.
Documents required for TAN registration:
- Application Form (Form 49B)—A completed and signed form for TAN applications.
- PAN Card (mandatory), Aadhaar card, driving license, voter ID, and address proof of the business and individuals, electricity bill, or rental agreement and, most importantly, bank statements of both the individuals and businesses.
- Certificate of Incorporation (For Companies)
- Partnership Deed (for partnership firms).
- GST Registration Certificate
- Communication details of email address and mobile number for OTP verification.
FAQs for TAN Registration?
Yes, a Tax Deduction and Collection Account Number (TAN) is required for TDS payments, with the possible exception of people deducting TDS under specified provisions using PAN.
If TDS is to be deducted, proprietors must get a TAN. However, if no tax deduction is involved, proprietorships do not need to obtain a TAN.
PAN is mandatory for TAN registration, linking tax deductions to the taxpayer. It ensures compliance with TDS/TCS regulations and helps track tax-related transactions efficiently.
No, TAN (Tax Deduction and Collection Account Number) is used for TDS/TCS purposes by organizations. Personal income tax requires a PAN (Permanent Account Number).
You can check the status of your TAN application on the National Securities Depository website by entering the confirmation number. A successful application will result in issuing a TAN confirmation
Failure to obtain a TAN might result in a ₹10,000 penalty under Section 272BB of the Income Tax Act, 1961.
Yes, TANs can be cancelled if they are unused, duplicated, or incorrectly issued. The applicant must submit a cancellation request to the Income Tax Department, along with appropriate reasons.
The Tax Deduction and Collection Account Number (TAN) does not get expired. It is valid until it is terminated by the Income Tax Department upon request or noncompliance.
No, an individual or corporation cannot have multiple TANs. Having more than one TAN is illegal, unless independent companies require different TANs for taxation.
Anyone who is deducting or collecting tax at the source (TDS/TCS), including businesses, firms, and people allowed by the Income Tax Act, must get a TAN number.
Legal Darbar manages TAN registration by helping applicants, preparing paperwork, ensuring compliance, submitting forms, tracking status, and resolving concerns to ensure a smooth Tax Deduction Account Number approval.