All about Tax Deduction Account Number (TAN) Registration
Just like PAN we have one more compliance called TAN. The TAN refers to Tax Deduction Account Number or Tax Collection Account Number. This is a 10-digit alpha- numeric number issued by the Income-tax Department. The assesse who is liable to deduct TDS (Tax deductible at source )has to get themselves for TAN registration. Section 203A of the Income Tax Act 1961, it is mandatory for all assesse to deduct TDS otherwise penalty of Rs. 10,000 will be imposed.
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Understanding TAN in India
Organizations in charge of withholding or collecting taxes on behalf of the nation’s tax administration system need an essential identifying number called a Tax Deduction and Collection Account. Tax Deduction at Source and Tax Collected at Source- related transactions are the primary use cases for TAN.
The Income Tax Department issues the TAN, a ten-digit alphanumeric code, to various entities, including companies, government agencies, and people obliged to withhold or collect taxes at the sources. To ensure transparency and compliance in tax-related transactions, it aids in tax collection tracking and regulations. On all TDS or TCS returns, challans, and other paperwork on tax deductions or collections, entitles must reference their TAN. Penalties and legal repercussions may result from violating TAN restrictions. Therefore, both Indian taxpayers and tax administrators must grasp TAN.