Tax Deduction and Collection Account Number (TAN)
Introduction
Every person responsible for deducting or collecting tax at source must obtain a Tax Deduction and Collection Account Number (TAN) within the prescribed time.
Application Process
- Application for TAN must be made inForm 49B.
- It can be filed electronically or manually with the Income-tax Department.
Time Limit for TAN Application
TAN must be obtained within 1 month from the end of the month in which tax was deducted or collected.
Mandatory Quoting of TAN
Once allotted, TAN must be quoted in:
- TDS/TCS payment challans.
- TDS/TCS returns (statements).
- TDS/TCS certificates.
- All prescribed documents related to such transactions.
Exceptions Where TAN is Not Required
- Purchase of Immovable Property (Section 194-IA)
o Deductor must file Form 26QB using PAN or Aadhaar instead of TAN.
- Rent Payments by Individuals/HUFs (Section 194-IB)
o Deductor must file Form 26QC using PAN or Aadhaar.
- Payments to Contractors/Professionals (Section 194M)
o Deductor must file Form 26QD using PAN or Aadhaar.
- Virtual Digital Assets (Section 194S- Specified Persons)
o Deductor must file Form 26QE using PAN or Aadhaar.