Tan application

TAN | HOW TO OBTAIN NEW TAN IN INDIA BIHAR PATNA | TAN CONSULTANT | HOW TO APPLY FOR TAN |

 

What is TAN?

TAN is Tax Deduction and Collection Number. TAN is used by the Income Tax Department to track all payments and filings of persons or entities required to deduct tax at source and pay it to the Government. TAN is a 10 digit alpha numeric number.

TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government’s collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government – quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax.

To obtain TAN, application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN will be allotted to the entity and the entity must quote the TAN in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates. IndiaFilings can help you obtain your TAN registration quickly and hassle-fee. IndiaFilings is an authorized TAN Facilitation Center.

Why is TAN required?

It is mandatory for business entities and other type of entities to deduct tax at the source, i.e., while paying rent, salary, etc., and pay the same to the Government. To track these payments, TDS Certificates and TDS Filings, the Government mandates TAN registration for all entities required to deduct tax at source. TDS ensures the responsibility for payment of tax is diversified and the Government receives tax sooner.

Who must obtain TAN?

Individuals who are salaried are not required to deduct tax at source. However, Individuals who run a proprietorship business are required to deduct tax at source. All other entities like LLP, Private Limited Company, Limited Company, Trust, Society, etc., are required to obtain TAN and deduct tax at source. Not obtaining TAN when applicable, attracts a penalty of Rs.10,000.

What documents are required for obtaining TAN?

To obtain TAN, application must be made in Form 49B at any of the authorized TAN Facilitation Center. IndiaFilings is an authorized TAN Facilitation Center.

Can I use a PAN instead of TAN?

No, PAN cannot be quoted where TAN is required. PAN and TAN serve two different purposes. Therefore, it is mandatory for those deducting tax at source to obtain a TAN.

At what rate should tax be deducted at source?

Tax deduction at source happens at different rate based on the transaction. TDS for salary is determined based on the employees’ salary and tax payable by the employee. TDS rate of 10% is adopted for rent of land, building or furniture if the annual rent exceeds Rs.1,80,000/-. For a complete list of TDS, click here.

SectionFor Payment ofOn Payments ExceedingIndividual/HUFOthers
193Interest on DebenturesRs. 5000/-10%10%
194Deemed DividendNo Minimum10%10%
194 AInterest other than on securities by banksRs. 10000/-10%10%
194 AInterest other than on securities by othersRs. 5000/-10%10%
194 BWinnings from Lotteries / Puzzle / GameRs. 10000/-30%30%
194 BBWinnings from Horse RaceRs. 5000/-30%30%
194 C(1)Payment to ContractorsRs. 30000/- for single payment, Rs. 75000/- for aggregate payment during Financial Year1%2%
194 C(2)Payment to Sub-Contractors / for Advertisements
194 DPayment of Insurance CommissionRs. 20000/-10%10%
194 EEPayment of NSS DepositsRs. 2500/-20%NA
194 FRepurchase of units by Mutual Funds / UTIRs. 1000/-20%20%
194 GCommission on Sale of Lottery ticketsRs. 1000/-10%10%
194 HCommission or BrokerageRs. 5000/-10%10%
194 IRent of Land, Building or FurnitureRs. 180000/-10%10%
Rent of Plant & MachineryRs. 180000/-2%2%
194 IATransfer of Immovable Property (w.e.f. 01.06.2013)Rs. 50 Lacs/-1%1%
194 JProfessional / technical services, royaltyRs. 30000/-10%10%
194 J(1)Remuneration / commission to director of the company10%10%
194 J(BA)Any remuneration / fees / commission paid to a director of a company, other than those on which tax is deductible u/s 192.10%10%
194 LCompensation on acquisition of Capital AssetRs. 100000/-10%10%
194 LACompensation on acquisition of certain immovable propertyRs. 200000/-10%10%

How long does it take to obtain a TAN?

TAN Registration can be obtained in 5-10 working days from date of application along with the required documents.

Can an entity have two or more TAN?

Any entity cannot have two or more TAN. It is illegal for an entity to possess more than one TAN.

When and where should the tax deducted at source be deposited?

Tax Deducted at Source (TDS) must be deposited through banks using Challan 281 quoting the TAN number of the entity. The deadline for payment of TDS is the 7th day of each month.

When should I file TDS Returns?

TDS Return should be filed quarterly on the 15th day of July, October, January and May. The TDS return filed on these months will correspond to the transaction of the preceding three months. Delay in furnishing eTDS statement will result in a mandatory penalty of Rs.200 per day, with the total fees not exceeding the total amount of TDS made for the quarter.

 

 

 

We are one of the leading company registration consultant, tax consultants based at Bihar. If you want to obtain new pan or tan number for your company or business or just for your self, please call us at +91-7050515253, +91-8540099000 or visit us at www.meeradgroup.in

Topic of this page:

TAN | HOW TO OBTAIN NEW TAN IN INDIA BIHAR PATNA | TAN CONSULTANT | HOW TO APPLY FOR TAN |

 

This article is written by: ACS Prince Kunal
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