Mandatory for all proprietary and persons responsible for collecting tax at the source and depositing it to the credit of the Central Government, TAN or Tax Deduction and Collection Number is a 10 digit alphanumeric account number allotted by the Tax Department of India. The entity applying for TAN is responsible for Tax Deducted at Souce (TDS) or Tax Collected at Source (TCS) on behalf of government.
Salaried individuals do not require TAN as they are receiving salary after deduction of TDS from their employers. However, any proprietary which is paying salary to employees, making payment to contractors and paying rent above 1,80,000 per annum has to do the payments after deducting TDS. In such case, the proprietary with TAN registration has to issue TDS certificate to the receiver. TDS is the way of ensuring proponed government’s tax collection and diversification of tax paying responsibility.
TAN registration is necessary for entities to deduct TDS/TCS. And to get through the whole process smoothly, we are the perfect associates. Jain Divya & Associates have the ideal experience regarding the TAN registration. The application need to be submitted through Form 49B along with all the necessary documents. The TAN registration takes 10-15 days after submission of all the documents, subject to government processing.
Documents Required for TAN Registration
TAN Registration does not require any particular document or identity proof. Only Form 49B needs to be filled properly and submitted.
TAN Registration Process
We collect the information from you and fill the Form 49B for you and take your confirmation.
Payment can be made through Demand draft, Cheque, Credit / Debit card
If you wish to do the payment via Demand draft, then the Form 49B along with DD in favor of ‘NSDL – TIN’ is submitted to any TIN Facilitation Center of NSDL.
Once the application is checked by the officials, TAN number is allotted by the Tax Department.
Need for TAN
- Be it profit or non-profit entities, all proprietors need to have TAN no. for their organizations and deduct TDS mandatorily.
- TDS needs to be deposited to the authorized bank using Challan 281 and quoting TAN.
- TDS certificate has to be issued by TAN registered entity to the employees and contractors.
- TDS must be paid before 7th of the succeeding month.
- TAN is valid for lifetime and TAN filings have to be done quarterly, failing which proprietor can be penalized.
With ideal experience and apt dedication towards serving our clients, Jain Divya & Associates are your ideal associate for anything related to accounts and finance. To get further details on TAN registration and TAN guidelines, get consultation appointment with us.