Start Using TAN in All TDS/TCS Transactions

• Once TAN is allotted, it must be quoted in all tax deduction or collection activities.
  
• Use the TAN for:
  
  • Filing TDS/TCS returns (Forms 24Q, 26Q, 27Q, 27EQ)
    
  • Making TDS/TCS payments using Challan 281
    
  • Issuing TDS certificates like Form 16 or 16A
    
• It becomes the official identifier for all tax reporting related to deductions and collections.
  

Register TAN on Income Tax E-Filing Portal

• After allotment, the entity must register the TAN on the Income Tax Department’s e-filing portal.
  
• This registration is necessary to:
  
  • File returns
    
  • View Form 26AS and TDS defaults
    
  • Receive communication from the department
    
• It also enables access to related services on the TRACES portal.
  

Create Account on TRACES Portal

• TAN holders must register on the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal.
  
• TRACES allows:
  
  • Downloading Form 16/16A
    
  • Viewing challan and return status
    
  • Submitting correction statements
    
• It is the central platform for TDS compliance and reconciliation activities.
  

Maintain and Update Compliance Records

• Maintain a TDS ledger or register tracking all deductions, challans, and returns filed under the TAN.
  
• Ensure timely:
  
  • TDS deposits
    
  • Quarterly return filings
    
  • Issuance of TDS certificates
    
• Record and retain all supporting documents for audit and verification.
  

Monitor Compliance to Avoid Penalties

• After TAN allotment, the entity must ensure continuous compliance to avoid penalties under:
  
  • Section 272BB (₹10,000 for failure to quote TAN)
    
  • Section 234E (late filing fees)
    
  • Section 271H (incorrect filing)
    

Regular tracking of due dates and submission status is essential for avoiding interest, defaults, and notices.