Publish: December 23, 2025
What is the review period of TAN usage?
No Fixed Legal Review Period
- There is no explicitly defined legal “review period” for TAN usage under the Income Tax Act.
- However, TAN-related compliance is generally **reviewed on a quarterly and annual basis during audits, return filings, and regulatory checks.
Quarterly Compliance Reviews
- TAN holders are required to file quarterly TDS/TCS returns (Form 24Q, 26Q, 27Q, 27EQ).
- Each quarter acts as a compliance review window, where tax deductions, challans, and filings are checked for:
- Timely deduction and deposit
- Correct TAN usage
- Proper PAN linkage and section-wise reporting
Annual Statutory Audit Review
- During the statutory audit, auditors examine TAN usage as part of Clause 34 of Form 3CD in the tax audit report.
- This includes:
- Verification of the TAN’s validity
- Cross-checking all deductions and payments made under TAN
- Identifying defaults or delays in TDS returns and tax remittances
Income Tax Assessments and Scrutiny
- TAN records may be reviewed by the Income Tax Department during scrutiny assessments, survey proceedings, or compliance notices.
- The review typically spans the past one or more financial years, depending on the scope of inquiry.
Internal Periodic Reviews
- Responsible businesses conduct monthly or quarterly internal reviews of TDS activity under TAN.
- These reviews include:
- Reconciliation of books with Form 26AS and TRACES data
- Verification of challans and TDS certificates issued
- Monitoring defaults or mismatches
Records Retention Period
- Though TAN is permanent, its associated TDS records and filings must be preserved for at least 6 to 8 years.
- This is crucial for audits, legal proceedings, or responding to inquiries from the tax department.
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