Lucknow Consultant

TAN

In Lucknow, TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric code that is required for deductors and collectors of tax to deposit tax deducted or collected at source. Here are the provisions for TAN number in India:

  1. TAN registration: Every person who is required to deduct or collect tax at source must obtain a TAN from the Income Tax Department. TAN registration can be done online through the NSDL (National Securities Depository Limited) website.
  2. TAN application form: TAN can be applied through Form 49B.
  3. TAN allotment: After the application is processed, the Income Tax Department will issue a TAN to the applicant.
  4. TAN usage: The TAN number must be quoted on all challans for payment of tax deducted or collected at source, TDS/TCS certificates, and all other TDS/TCS related documents.
  5. TAN validity: The TAN number once allotted is valid for a lifetime and does not require any renewal.
  6. TAN correction: In case of any errors or mistakes in the TAN application or TAN certificate, the applicant can apply for correction online through the NSDL website.

It is essential for deductors and collectors of tax to obtain and use TAN number as per the provisions of the Income Tax Act, 1961, and the Income Tax Rules, 1962 to avoid any penalties and interest charges.

To elaborate further on TAN provisions in India, here are some additional points:

  1. TAN cancellation/surrender: If a person who has obtained a TAN no longer needs it, they can surrender the TAN by filing an application for cancellation of TAN with the Income Tax Department.
  2. TAN verification: The TAN can be verified online on the NSDL website by entering the TAN number and the name of the deductor/collector.
  3. TAN penalties: If a person fails to apply for TAN or quotes an incorrect TAN number, they may be liable to pay a penalty of Rs. 10,000 under Section 272BB of the Income Tax Act, 1961.
  4. TAN non-compliance: If a person fails to deduct or collect tax at source or fails to deposit the tax deducted/collected at source, they may be liable to pay interest, penalty, and prosecution under the provisions of the Income Tax Act, 1961.
  5. TAN renewal: TAN number does not require any renewal. However, if there are any changes to the details provided in the TAN application, such as the name or address of the deductor/collector, they must inform the Income Tax Department of the changes.
  6. TAN for foreign entities: Foreign entities who are not required to obtain a Permanent Account Number (PAN) in India can obtain a TAN by applying through Form 49B.

In summary, TAN provisions in India are crucial for deductors and collectors of tax to comply with the provisions of the Income Tax Act, 1961, and the Income Tax Rules, 1962. TAN registration, correct usage, and timely deposit of tax deducted/collected at source are essential to avoid any penalties, interest, and legal actions.

  1. TAN for government deductors: Government deductors, such as the Central and State Government, do not require a TAN to deposit tax deducted at source. Instead, they must quote their PAN in all TDS/TCS related documents.
  2. TAN for non-residents: Non-residents who are liable to deduct or collect tax at source in India must also obtain a TAN.
  3. TAN for trusts and other entities: Trusts, societies, associations, and other entities who are required to deduct or collect tax at source must also obtain a TAN.
  4. TAN for individuals and HUFs: Individuals and HUFs (Hindu Undivided Families) who are required to deduct or collect tax at source must also obtain a TAN.
  5. TAN usage for different types of taxes: TAN is used for the deposit of tax deducted at source (TDS) under various sections of the Income Tax Act, such as Section 192, 193, 194, and 194A. TAN is also used for the deposit of tax collected at source (TCS) under Section 206C.
  6. TAN application fees: The fee for applying for a TAN is Rs. 65 + GST, as of 2023.
  7. TAN non-obligation: TAN is not mandatory for individuals and HUFs who are not required to deduct or collect tax at source. However, if they do need to deduct or collect tax at source, they must obtain a TAN.
  8. TAN for e-commerce operators: E-commerce operators who are required to collect tax at source under Section 194-O of the Income Tax Act must also obtain a TAN.

In conclusion, TAN  consultant in Lucknow, Uttarpradesh are essential for various entities who are required to deduct or collect tax at source. Obtaining a TAN, correctly quoting it on all TDS/TCS related documents, and timely deposit of tax deducted/collected at source are crucial for complying with the provisions of the Income Tax Act, 1961.