Verification of TAN Registration

• Confirm that the entity has obtained a valid TAN under Section 203A of the Income Tax Act.
  
• Check that the TAN is registered and active on government portals like TRACES and the Income Tax e-filing site.
  
• Ensure that the TAN details (name, PAN linkage, and jurisdiction) match organizational records.
  

Review of TDS/TCS Deductions and Deposits

• Examine whether TDS/TCS is being correctly deducted or collected under applicable sections (e.g., 194C, 194J, 194I).
  
• Verify timely deposit of the deducted/collected tax using Challan 281, with the correct TAN quoted.
  
• Match the deductions against relevant entries in the books of accounts, contracts, and payment registers.
  

Quarterly Return Filing Accuracy

• Check that TDS/TCS returns (24Q, 26Q, 27Q, 27EQ) are filed within the statutory due dates for each quarter.
  
• Review the data submitted in returns for correctness in terms of deductee PANs, amounts, section codes, and challans.
  
• Identify any late filings or incorrect submissions and confirm whether correction statements were filed.
  

Reconciliation with TRACES and Form 26AS

• Match TDS details in the company’s ledger with the TRACES portal records and Form 26AS.
  
• Identify mismatches, short credits, or unclaimed deductions and verify if they were resolved.
  
• Evaluate the accuracy of Form 16/16A generated and issued to employees or vendors.
  

Review of TAN Usage in Contracts and Communications

• Ensure that TAN is consistently quoted in:
  
  • Vendor agreements
    
  • Tax invoices
    
  • TDS certificates and correspondence with vendors or tax authorities
    
• Verify that internal accounting software uses the correct TAN for all TDS-linked transactions.