TAN is called Tax Deduction and Collection Number and TAN is a 10 digit alphanumeric number required for all the entity or person who is responsible for deducting or collecting the tax from the person or company. TAN is issued by the Income-tax Department. As per section 272BB of Income Tax Act, a heavy penalty of up to Rs. 10,000 if TAN in not obtained and deducting tax. Under section 194-IA, person who is required to deduct tax can use PAN also in place of TAN. After tax deduction, TDS certificate is a proof of collection of tax.
TAN and PAN are different as TAN is assigned to a person who is responsible to collection or deduct whereas PAN is issued to a person who earns income and pay taxes to the Government.
As per Income Tax Act, following are eligible for TAN-
- Association of persons
- Branch of individual business
As per Section 203A of Income Tax Act, TAN is recite for the following documents
- Statement of financial transactions
- Tax Deducted at source (TDS) certificate
- Tax Collected at source (TCS) certificate
- Challans for payments of TDS/TCS
Online TAN Registration in India
For the allotment of TAN, application must be made with all required supporting documents. After application, TAN will be allotted to the company or a person and then company must quote the TAN in all TDS/TCS returns. You can call us to know the process how you can register TAN or how you can apply for TAN. SK Tax Law firm can help you to obtain your TAN registration quickly. Please call us to obtain TAN and to know the procedure to apply TAN. We have experts to help you how you can apply for TAN and we will tell you why you need TAN and what are the uses of TAN.