The Income Tax Department has issued a formal statutory warning to all TAN (Tax Deduction and Collection Account Number) holders who have failed to file their mandatory TDS/TCS returns within the prescribed timelines. This warning applies to businesses, government agencies, NGOs, and professional entities that are registered deductors or collectors under the Income Tax Act, 1961. The department has flagged that persistent non-filing or delayed compliance may result in financial penalties, interest charges, disallowance of expenses, and possible prosecution in serious cases.

Under Sections 234E and 271H of the Act, late filing of quarterly TDS/TCS statements attracts a fee of ₹200 per day and additional penalties, which can go up to ₹1,00,000 depending on the severity and duration of the default. The department has reiterated that all TAN holders must submit Form 24Q, 26Q, 27Q, or 27EQ, as applicable, and ensure accurate deduction, timely payment, and correct PAN-TAN mapping. The warning also applies to those who have obtained a TAN but are not actively using it, yet remain legally bound to file nil returns or formally surrender the TAN if no longer required.

To mitigate consequences, the government has advised defaulters to immediately log in to the TRACES portal, assess their filing status, and clear any pending obligations. Advisory messages have already been sent via registered emails and SMS to alert non-compliant TAN holders. The department has made it clear that this is the final notice before initiating enforcement actions, and entities are strongly urged to treat this compliance warning with utmost seriousness to avoid escalation.