The Income Tax Department has announced a set of new rules requiring e-commerce sellers to comply with TAN (Tax Dedication and Collection Account Number) regulations, effective from the upcoming financial quarter. Under the revised framework, online sellers operating on platforms like Amazon, Flipkart, Meesho, and others who make payments that trigger TDS/TCS obligations will now be mandated to obtain and quote a valid TAN. The move is designed to improve tax transparency and align e-commerce activities with existing TDS/TCS norms under Sections 194O and 206C(1H) of the Income Tax Act.

According to the guidelines, e-commerce operators who deduct TDS on behalf of sellers must ensure that sellers have a registered TAN if they, in turn, make further tax-deductible payments to vendors, freelancers, or service providers. Additionally, sellers with annual gross receipts exceeding ₹10 crore or those making payments beyond statutory thresholds will be subject to strict scrutiny for TAN compliance. This is particularly relevant for high-volume sellers and aggregators who manage large supply chains through digital platforms.

The department has urged all qualifying e-commerce sellers to verify their TAN status or apply for one immediately using the upgraded NSDL portal, which offers faster processing and integration with PAN systems. Failure to comply may lead to penalties, blocked payouts, and loss of business privileges on marketplace platforms. Tax experts recommend that sellers update their compliance systems, keep track of TDS transactions, and maintain proper documentation to avoid potential legal consequences under the revised rules.