Tax Deduction and Collection Account Number (TAN) Registration

The Tax Deduction and Collection Account Number (TAN) is a ten-digit alphanumeric number issued by the Income Tax Department (ITD) to individuals or entities responsible for deducting or collecting tax at source (TDS or TCS). TAN is mandatory for deducting TDS from various payments, such as salaries, professional fees, rent, interest income, and dividends.

Applications for TAN Registration

TAN registration is required for individuals or entities that are:

• Employers deducting TDS from employee salaries
• Businesses deducting TDS from professional fees or rent payments
• Individuals deducting TDS from interest income
• Companies collecting TCS from buyers of certain goods or services

Eligibility for TAN Registration

Any individual, company, firm, Hindu Undivided Family (HUF), Limited Liability Partnership (LLP), trust, association of persons (AOP), or body of individuals (BOI) responsible for deducting or collecting TDS or TCS is eligible for TAN registration.

Documents Needed for TAN Registration

The documents required for TAN registration vary depending on the applicant type. For individuals, common documents include:

• PAN card
• Identity proof (e.g., Aadhaar card, voter ID, passport)
• Address proof (e.g., utility bills, bank statements, property tax receipts)

For companies and other entities, additional documents may be required, such as incorporation certificates, partnership deeds, or trust deeds.

Importance of TAN Registration

TAN registration is crucial for deducting or collecting TDS or TCS and filing TDS returns. Without a valid TAN, TDS deductions cannot be made, and TDS returns cannot be filed. This can lead to penalties and non-compliance with tax regulations.