TAN REGISTRATION:-
Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be attain by all persons who are accountable for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source ensures that the Government's collection of tax is submitted and the responsibility for paying tax is diversified. The person deducting the tax at source is needed to deposit the tax deducted to the credit of Central Government - quoting the TAN number. Individuals who are salaried employees are not needed to obtain TAN or deduct tax at source. However, a proprietorship business and other entities as Private Limited Company, LLP, etc. must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.180, 000 per year, etc. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as a proof of collection of tax.
To get TAN, application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN will be allotted to the entity and the entity must mention its TAN in all TDS and TCS returns, TDS and TCS payment challans and all TDS and TCS Certificates.
TRACES provide many attributes at its website to a registered deductor. The attributes includes: view challan status, download Conso File, Justification Report and Form 16 / 16A, view TDS and TCS credit for a PAN as well as verify PAN of Tax Payers linked to the deductor or collector. In order to get advantage of above features, it is mandatory to a deductor to obtain TAN.