The Income Tax Department has uncovered widespread TAN-related irregularities during recent raids conducted on several business establishments, including real estate firms, contractor networks, and manufacturing units. According to official sources, these raids revealed instances where companies had either failed to use their TAN (Tax Deduction and Collection Account Number) for mandatory TDS (Tax Deducted at Source) deductions or had deliberately quoted invalid or expired TANs in statutory filings, in violation of the Income Tax Act, 1961.

The investigation teams discovered discrepancies such as unreported salary and vendor payments, mismatched PAN-TAN records, and non-issuance of Form 16/16A to deductees. In some cases, entities had obtained multiple TANs to divert financial scrutiny across jurisdictions, while others used old, inactive TANs to file returns and claim deductions fraudulently. These findings have triggered enforcement actions under Sections 271H and 272BB, with penalties and interest charges being imposed and further prosecution under consideration for willful defaulters.

Tax officials have reiterated the need for businesses to verify and use only active and valid TANs and to maintain accurate and timely TDS/TCS records through the TRACES portal. The department has also warned that technology-backed audits and data analytics will continue to identify and act against irregularities related to TAN misuse. These raids underscore the government’s intent to tighten tax enforcement mechanisms and ensure that all registered deductors and collectors remain fully compliant with their TAN-related obligations.