Withholding tax number - Tax Deduction Account Number (TAN) :

Tax Deduction Account Number

Indian Income Tax Act has specified certain payments (detailed under) on which the payer is required to withhold the tax (TDS) and pay to the Government on behalf of the receiver.

  • Interest,
  • Rent ,
  • Salary,
  • Commission,
  • Professional Fees etc

Also there are specified transactions where taxes are required to be collected at source (TCS).

The Indian Income Tax Act has prescribed harsh penalties and prosecution in case of non compliance including non payment of taxes deducted.

To withhold / collect such taxes and pay the same to Government, LO/BO needs to obtain TAN. Also the LO/BO who has withhold / collected taxes and paid to The Government is required to file quarterly online returns (TDS returns) submitting prescribed details.

It's mandatory to quote TAN in all TDS/TCS returns, Challan payments and certificates issued.

Failure to apply for TAN or comply with any of the other provisions of the section attracts penalty as per provisions of The Income Tax Act.

An entity can have multiple TAN numbers for each of its different branches or divisions.

If the application is correctly filled and is accompanied by prescribed documents, our experience is that the TAN is allotted to the company in about 2 weeks.

For any further Questions that you may have, please feel free to write to us on tds@kdpaccountants.com

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