Eligibility Criteria:
- A mandatory requirement for organisations involved in transactions that require submitting TDS proof to the Income Tax Department.
- A TAN will be compulsory if the payable amount is more than Rs 50,000 a month.
- Every business, individual, government agency or organisation deducting TCS or TDS is eligible for TAN application.
- Failure to do that will result in legal action and penalties.
- Besides that, Section 194M of the Income Tax Act 1951 allows a yearly TDS deduction of 5% for contractual work. Moreover, taxes on brokerage and commission are deductible if the principal amount is more than Rs 50 Lakh.
Benefits of TAN Registration
- Filing TDS returns using TAN auto-populates deductee details, ensuring transparency.
- TAN enables tracking of TDS booking status for alignment with filed returns.
- Enterprises can apply for separate TANs for each branch or division.
- A unique 10-digit TAN is mandatory for filing ITR, TDS, or TCS statements for faster processing.
- Updated TAN details ensure timely TDS/TCS notifications from the Income Tax Department.
- Secure login areas provide deductors access to TDS and TCS data.
- Deductors can download input files for correction statements and check challan status.
- TDS status statements aid in monitoring and managing tax obligations.
- Section 200A simplifies TDS reconciliation for proper reporting and compliance.
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