Tax Deduction and Collection Number (TAN) is mandatory 10-digit alpha number required to be obtained by all persons, responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government. Salaried Individuals are not required to obtain TAN. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) are required to obtain TDS and deduct tax at source while making payments like salary, payments to contractor or sub-contractors, payment of rent, etc. Online Startup India.Com can help you get TAN Registration.
REASONS TO TDS RETURN FILING
TAN – TAX DEDUCTION ACCOUNT NUMBER
PAN is a 10 character alpha-numeric code issued by the Income Tax Department for persons responsible for deducting or collecting tax at source. All most all for-profit entities and not-for-profit entities are required to obtain TAN.
PROPRIETORSHIP REQUIRE TAN
An LLP is a separate legal entity which means it can acquire and own assets in its name. It can sue and be sued.
Tax Deducted at Source must be paid into authorized bank, quoting the TAN and using Challan 281. TDS during the preceding month must be paid before the 7th day of the following month.
Once a TAN is issued, it is valid for lifetime. However, TDS Filings must be made quarterly on the 15th day of July, October, January and May. Non-filing of TDS filings within the due date will attract a penalty.