TAN Series-2( all about TAN)

1.      TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax.

2.      All those persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

3.      The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. It is mandatory to quote TAN in all TDS/TCS return as well as TDS/TCS certificates and payments challan.

4.      TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks.

5.      Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-