TAN Registration or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government's collection of tax is proponed and the responsibility for paying tax is diversified. TAN registration is required for making TDS deduction or TCS collection, remittance of TDS payments and issuance of TDS certificates. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government - quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax.
TAN Registration , application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN registration will be allotted to the entity and the entity must quote the TAN in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates.
Once a TAN is issued, it is valid for lifetime. However, TCS Filings must be made quarterly on the 15th day of July, October, January and May.TDS Filings must be made quarterly on the 30th day of July, October, January and May. Non-filing of TDS filings within the due date will attract a penalty.
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.