TAN Registration Services
TAN Registration Services by Deepak Prakash & Associates
At Deepak Prakash & Associates, we provide professional TAN Registration Services for businesses in Jaipur and across India. A Tax Deduction and Collection Account Number (TAN) is a unique identification number issued to entities responsible for deducting or collecting tax at source under the Income Tax Act of India. It is mandatory for every business or person deducting TDS (Tax Deducted at Source) to obtain a TAN to ensure proper compliance with tax laws.
TAN is essential for individuals or organizations involved in the deduction of tax from payments such as salaries, vendor payments, contractor fees, professional fees, etc. It ensures that the deducted tax is properly credited to the government account and facilitates smoother processing of returns. If your business deducts TDS, obtaining TAN is a necessary step for maintaining transparency and legal compliance.
What is TAN Registration?
TAN Registration is the process by which an entity (either an individual or a business) obtains a unique Tax Deduction and Collection Account Number from the Income Tax Department of India. The TAN is used to track and report the TDS deducted and deposited by the entity to the tax authorities.
Once registered, the entity uses this TAN to:
- Deduct TDS on payments such as salaries, professional services, rent, interest, etc.
- File quarterly TDS returns and annual statements.
- Deposit the deducted TDS with the government.
- Issue TDS certificates to employees, contractors, and vendors.
A valid TAN is crucial for an entity to avoid penalties, interest, and legal consequences.
Why is TAN Registration Important?
Legal Requirement: As per the Income Tax Act, it is mandatory for any individual or business entity to obtain a TAN if they are responsible for deducting TDS or TCS (Tax Collected at Source). Failure to obtain a TAN can result in a penalty of ₹10,000 under Section 272B of the Income Tax Act.
Timely TDS Filing: TAN registration is required for filing accurate and timely TDS returns. It ensures proper reporting and deposit of the tax deducted with the government.
Avoid Penalties: Without a valid TAN, the business cannot comply with tax regulations. If TDS is deducted without a TAN or if the TAN is incorrect, penalties and interest may apply.
Transparency and Record Keeping: A unique TAN number helps maintain a transparent record of the taxes deducted at source. It enables easy access to records for auditing and ensures accountability.
Issue TDS Certificates: The TAN is used for generating and issuing TDS certificates (Form 16, Form 16A) to employees, contractors, and vendors, confirming the amount of tax deducted at source.
When is TAN Registration Required?
TAN registration is required in the following scenarios:
- Salary Payments: Employers must deduct TDS on employee salaries above the exempt limit and report it using their TAN.
- Payments to Vendors or Contractors: When payments are made to contractors, consultants, and vendors above the specified threshold limits, TDS must be deducted and reported using the TAN.
- Other Payments: TDS is applicable on other payments such as interest, rent, professional fees, dividends, etc., and the business or individual making these payments must obtain a TAN.
Steps for TAN Registration
The process for obtaining TAN is straightforward and can be done online through the official website of the Income Tax Department. Here’s how you can register for TAN:
Step 1: Fill Out the TAN Application Form
- You can apply for TAN online via the NSDL website (or through other authorized agencies).
- Complete the Form 49B (the application for TAN), providing basic details about the applicant, such as the name of the business or individual, PAN, address, contact details, and the type of entity (e.g., company, firm, individual, etc.).
Step 2: Submit the Application
- Once the form is filled out, you can submit it online.
- If you are applying offline, you can download the form, fill it, and submit it to the NSDL office along with the necessary documents.
Step 3: Payment of Processing Fees
- A nominal processing fee must be paid to complete the registration. This can be done online using credit/debit cards or net banking, or offline via demand drafts in case of manual submission.
Step 4: Acknowledgement
- After successful submission and payment, an acknowledgment receipt will be generated with a unique number. Keep this receipt safe for future reference.
Step 5: Receive TAN
- After processing the application, the Income Tax Department will issue the TAN and send it to your registered address. The TAN will also be available online.
- The typical processing time for TAN registration is around 7-10 working days.
Documents Required for TAN Registration
- PAN Card of the applicant (business or individual).
- Business Registration Details (for companies, firms, or LLPs), such as certificate of incorporation, partnership deed, etc.
- Address Proof (utility bill, rental agreement, etc.) of the applicant.
- Details of the authorized signatory (if applicable), such as name, designation, and contact details.
Types of Entities That Need TAN
- Companies: Private limited, public limited, and other types of companies.
- Partnership Firms: Including LLPs (Limited Liability Partnerships).
- Proprietors: Individual business owners who are required to deduct TDS.
- Government Entities: Government bodies and public sector undertakings (PSUs).
- Associations and Trusts: Any charitable trusts or associations that need to deduct TDS.
TAN Registration for Different Types of TDS
TDS on Salary:
- Employers must deduct TDS on employee salaries, based on income tax slabs.
- TAN is used to file TDS returns and issue Form 16 to employees.
TDS on Payments to Vendors/Contractors:
- Businesses must deduct TDS on payments made to vendors, contractors, professionals, and other service providers.
- Different TDS rates apply depending on the type of payment (e.g., rent, professional fees, commission, etc.).
TDS on Interest/Other Income:
- Banks and financial institutions must deduct TDS on interest paid to depositors, based on specified thresholds.
- TAN is used to report and deposit the TDS with the government.
TDS on Commission/Fees:
- TDS is applicable on commission, brokerage, or professional fees, depending on the type of payment made.
Advantages of Having TAN
Tax Compliance: Having a valid TAN helps your business remain compliant with Indian tax laws by ensuring proper deduction and reporting of TDS.
Avoid Penalties: Non-registration or incorrect TDS deductions without a valid TAN can lead to penalties and interest. A proper TAN ensures no penalties are levied.
Faster Processing: A registered TAN helps facilitate quicker processing of TDS returns, payments, and certificates, keeping the business operations smooth.
Accurate TDS Filing: TAN ensures that tax deducted at source is correctly filed with the Income Tax Department, reducing the risk of errors and discrepancies.
Maintain Transparency: A unique TAN keeps all your TDS-related filings transparent and easy to track, which is beneficial during audits.
Why Choose Deepak Prakash & Associates for TAN Registration?
Expert Guidance: Our experienced professionals assist you throughout the TAN registration process, ensuring you meet all requirements without any hassle.
Quick Processing: We ensure that your TAN application is processed smoothly and within the stipulated time frame, avoiding any delays.
Accurate Filing: Our experts ensure the correct application of TDS and timely filing of returns, reducing the risk of penalties or errors.
Comprehensive Services: From TAN registration to TDS filing and compliance, we offer a complete range of tax-related services to businesses.
Personalized Approach: We understand the unique needs of your business and provide customized solutions to ensure that all tax-related matters are handled efficiently.
