In a progressive move to promote voluntary compliance and tax discipline, the Income Tax Department has announced that it will soon launch a recognition program to reward top TAN (Tax Dedication and Collection Account Number) compliant firms across various sectors. This initiative is part of the government’s broader effort to incentivize accuracy, punctuality, and transparency in TDS/TCS operations, and to foster a culture of digital-first, self-driven compliance under the Income Tax Act, 1961.

Firms will be evaluated based on several criteria, including timely filing of TDS/TCS returns, error-free submissions, consistency in PAN-TAN mapping, prompt issuance of Form 16/16A, and minimal requirement for corrections or defaults. Entities maintaining a high compliance score across multiple quarters will be shortlisted by the Compliance Monitoring Cell of the department and may be eligible for public recognition, fast-track refund processing, reduced scrutiny, or digital compliance certificates. The categorization will likely span industry verticals, entity sizes, and jurisdictional zones.

Officials have confirmed that the compliance performance will be derived from data aggregated through TRACES, NSDL, and CPC-TDS systems, and will be updated periodically. The department encourages all TAN holders—particularly corporates, PSUs, large service providers, and institutions—to audit their TDS practices, resolve discrepancies, and maintain accurate, real-time records. This program reflects the government’s focus on creating a positive reinforcement model in India’s tax ecosystem, where compliance excellence is recognized and rewarded, encouraging others to follow suit.