Identifies the Deductor or Collector Uniquely TAN provides a unique identifier for every person or entity responsible for deducting or collecting tax at source under the Income Tax Act. It ensures that all TDS/TCS activities are directly linked to the correct legal...
Online Verification via Income Tax Portal The Income Tax Department provides a "Know Your TAN" facility on its e-filing portal. You can verify TAN by selecting: State of the deductor Name of the entity or individual Category of deductor (e.g., company, individual,...
Verification of TAN Registration Confirm that the entity has obtained a valid TAN under Section 203A of the Income Tax Act. Check that the TAN is registered and active on government portals like TRACES and the Income Tax e-filing site. Ensure that the TAN details...
TDS on Domestic Transactions Export businesses may not deduct TDS on income earned from exports as it is generally exempt under certain sections. However, they are still liable to deduct TDS on domestic payments such as: Rent for office premises Contractor and...
Enables Immediate Tax Deduction Compliance Early TAN registration allows businesses and individuals to start deducting or collecting tax at source (TDS/TCS) from the very first eligible transaction. It ensures compliance with Section 203A of the Income Tax Act without...
No Fixed Legal Review Period There is no explicitly defined legal “review period” for TAN usage under the Income Tax Act. However, TAN-related compliance is generally **reviewed on a quarterly and annual basis during audits, return filings, and regulatory checks....
Maintain a TDS/TCS Calendar Create a monthly and quarterly compliance calendar that tracks all TDS/TCS obligations related to TAN. Include important dates for: Tax deduction/collection Due dates for deposit (typically the 7th of the next month) Quarterly return...
Monthly TDS/TCS Deduction Under TAN compliance, deductors or collectors must deduct or collect tax at source each time a qualifying payment is made—such as salary, rent, professional fees, or sale of goods (in the case of TCS). This obligation is triggered immediately...
Legal Requirement for Tax Deduction and Collection TAN (Tax Deduction and Collection Account Number) is a mandatory legal identifier under Section 203A of the Income Tax Act, 1961. It is required by all entities and individuals who are liable to deduct or collect tax...
Verification of TAN Allotment Auditors must confirm that the assessee has been allotted a valid TAN under Section 203A of the Income Tax Act. The TAN must match the entity’s legal name and PAN, and should be correctly mentioned in all TDS-related documentation. If the...