A TAN number is required by any firm or individual that needs to deduct taxes at source (TDS) when making important payments such as rent, salaries, payments to contractors, subcontractors, and so on. This is a unique ten-digit alphanumeric code that will be required for TDS related filing and work. To do so, you'll need to register for a TAN number, which is issued by the NSDL on behalf of the ITD. On the official Indian government page for TAN registration, this TAN number may be simply authenticated and verified.
In general, there are two types of TAN applications, which are described below:
Along with the application for TAN, the following documents must be submitted:
The Income Tax Department issues a 10-character alpha-numeric code to those who are responsible for deducting or collecting amount of taxes. Almost all for-profit and non-profit organisations are required to obtain a TAN.
Tax Deducted at Source must be deposited by authorised bank using Challan, quoting the TAN. TDS collected in the previous month must be paid by the 7th of the following month.
Individuals who are paid a salary are not required to deduct tax at source. Individuals who run a sole proprietorship, on the other hand, must obtain a TAN and deduct tax at source as needed.
A TAN is valid for the rest of one's life. TDS filings, on the other hand, must be made quarterly on the 15th of July, October, January, and May. A penalty will be imposed if TDS filings are not submitted by the deadline.
All person who require to deduct TDS/TCS must apply for TAN.