A Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric code issued by the Income Tax Department of India. It is mandatory for businesses, employers, and entities that deduct Tax Deducted at Source (TDS) or Tax Collected at Source (TCS). Without TAN, TDS payments and filings cannot be processed.
Why is TAN Registration Important?
Mandatory for TDS/TCS Compliance: Required for deducting and depositing tax at source.
Avoid Penalties: Failure to obtain TAN can lead to a penalty of ₹10,000.
Essential for Salary Payments: Employers must have TAN to deduct TDS on employee salaries.
Required for Business Transactions: TAN is needed for TDS on payments like rent, contractor fees, professional services, and interest.
Who Needs a TAN?
✔ Businesses & Companies deducting TDS on payments like salaries, contracts, rent, or professional fees.
✔ Employers who deduct TDS on employee salaries.
✔ Freelancers & Professionals liable to deduct TDS on payments.
✔ Banks & Financial Institutions deducting TDS on interest payments.
✔ Individuals & Hindu Undivided Families (HUFs) if required to deduct TDS under tax laws.
How to Apply for TAN?
Fill Form 49B – Submit an online or offline application.
Submit KYC Documents – Provide PAN, address proof, and business details.
Processing & Verification – The Income Tax Department verifies the application.
TAN Allotment – Receive TAN within 7-10 working days.
Documents Required for TAN Registration
📌 PAN Card of the entity or individual
📌 Address proof of the business or individual
📌 Business incorporation certificate (for companies)
📌 Authorized signatory details
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🔹 Need TAN Registration? Contact Us
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