TAN Registration
Tax Deduction and Collection Account Number (TAN) is a unique 10-digit alphanumeric code issued by the Income Tax Department of India. It is mandatory for entities who are required to deduct or collect tax at source. Apnaa Filing ensures a smooth and quick TAN registration process, helping you stay compliant with Indian tax regulations.
1. What is TAN?
TAN is a unique identification number for businesses, entities, and individuals who are responsible for deducting or collecting tax at source (TDS/TCS). It is necessary for tax filing, remittance, and reporting of tax deductions and collections to the Income Tax Department.
2. Who Needs to Apply for TAN?
TAN is mandatory for:
- Employers: Who deduct tax at source from employee salaries.
- Businesses: Who deduct tax at source for payments made to vendors, contractors, etc.
- Other Entities: Including government bodies, organizations, and individuals conducting certain financial transactions.
3. Benefits of TAN
- Legal Compliance: It is required by law for all entities that deduct or collect tax at source.
- TDS/TCS Filing: Required for filing TDS returns and making payments of tax deducted at source.
- Avoid Penalty: Failure to obtain a TAN or filing TDS returns without it can lead to penalties under the Income Tax Act.
- Seamless Transactions: Facilitates smooth and transparent tax deduction and remittance to the government.
4. Documents Required for TAN Registration
- Proof of Identity: Aadhar card, PAN card, Passport, Voter ID, etc.
- Proof of Address: Utility bills (electricity, gas, or water), bank statement, or any government-issued documents showing address.
- For Business or Entities: Certificate of Incorporation or Registration, Partnership Deed, or other business-related documents.
5. Step-by-Step TAN Registration Process
- Fill TAN Application Form: Complete the TAN application form online via NSDL (National Securities Depository Limited) or through the Income Tax Department’s website.
- Submit Documents: Provide proof of identity, address, and other documents as per the entity type.
- Payment of Application Fee: Submit the fee for processing the TAN application.
- Verification: The documents and application are verified by the Income Tax Department.
- TAN Allotment: Upon successful verification, the TAN is allotted to the applicant, and the confirmation is sent to the registered address.
- Use of TAN: The TAN is now ready for use in TDS filings, making tax payments, and filing quarterly returns.
Key Points to Remember
- Mandatory for Tax Deduction Entities: Entities required to deduct tax at source must obtain TAN.
- Application Timeline: The application process generally takes 7-10 business days.
- Penalty for Non-Compliance: If you fail to obtain or use a valid TAN, you may face a penalty under the Income Tax Act.
- No Renewal: TAN does not need renewal, but it can be modified or corrected if there are changes in business details or personal information.
Apnaa Filing helps you with a quick and accurate TAN registration process, ensuring that you comply with all tax obligations and regulations.