Tax Allocation Number (TAN)
What is TAN?
Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to individuals who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961.We at tax Freedom services do assist our clients in getting TAN No., simply you have to select the package & send us the documents , rest we will do for you.
Why is it necessary to have TAN?
The provisions of Section 203A of the Income-tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS/TCS/Annual Information Returns, payment challans and certificates to be issued. If TAN is not quoted, TDS/TCS returns will not be accepted by TIN-Faciliation Centres (TIN-FCs) and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000.
Who must apply for TAN?
All those persons who are required to deduct/collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.
Is it necessary to apply for different TAN if a deductor has to deduct tax from different types of payments like salary, interest, dividend etc.?
No, TAN once allotted can be used for all type of deductions/collections.
Should Government deductors apply for TAN?
Yes. All Government deductors are also required to quote the TAN on their TDS / TCS / Annual Information Returns.
In case of multiple DDOs, should all of them apply for TAN?
Yes. In such case, the name of the Division; name and location of branch or the designation of the person responsible for deducting/collecting tax, whichever is applicable, should be clearly given in the application for allotment of TAN
Can a TDS/TCS/Annual Information return be filed without TAN in case TAN has not been allotted?
Quoting of TAN is mandatory in all TDS/TCS/Annual Information returns, whether filed in paper or electronic format. The return, whether in paper or electronic format, will not be received in case correct TAN is not quoted.
Can I quote PAN in place of TAN?
No. PAN should never be quoted in the field where TAN is required to be quoted. The purposes for which PAN and TAN are allotted are different. TAN is a unique identification number which is allotted to persons who are deducting or collecting tax at source on behalf of the Income Tax Department. PAN is a unique number allotted to assessees like individuals, companies etc.