TAN REGISTRATION

Tax Deduction and Collection Account Number or Tax Collection Account Number (TAN) is a ten-digit alphanumeric number provided by the Income-tax Department, to a person who is required to execute Tax Deduction at Source (TDS) and Tax Collection at Source (TCS). All entities which deduct tax at source should hold a TAN number to execute the deduction process, on behalf of the government and deposit to the same. Section 203A of Income Tax Act, 1961, mandates that all entities quote TAN in all communications related to TDS. In every TDS/TCS returns, TDS/TCS certificates, TDS/TCS payment challans, the TAN number should be mentioned.

Features of TAN
Every person who is liable to deduct tax at source or collect tax at source is required to obtain TAN
An individual required to deduct tax under section 194-IA can, however, use PAN instead of TAN as that individual is not required to obtain TAN.
Tax Deduction Account Number (TAN) is not required to deduct tax under section 194-IB or section 194 M.
According to section 194-IB (as added by the Finance Act, 2017), any person or HUF [whose account books are not required to be checked under section 44AB] shall be liable to deduct 5% tax rate while paying the rent of any land or building or both to a resident if the sum of the rent exceeds Rs 50,000 for a month
Section 194 M [inserted by Finance (No. 2) Act, 2019] provides tax deductions, at a rate of 5%, from the amount charged or credited to a resident in a year based on contractual work, commission (not insurance commission as referred to in Section 194D), brokerage or professional fees, by a person or HUF [whose account books are not necessary to be audited in compliance with Section 194D].

DOCUMENTS REQUIRED FOR TAN REGISTRATION
There are no specific documents required for obtaining the TAN but some important details should be furnished.

1. Address proof - Aadhaar card or other.
2. Applicant information - Name, address, contact, signature, etc.
3. Certificate of incorporation for a company, LLP, etc.
4. Agreement made aboutfor a partnership firm, LLP, etc.
5. After incorporating the above details, the acknowledgment slip is generated.
6. Save and print the acknowledgment receipt for further reference.
7. If the payment is to be done online, then a credit card/debit card/net banking mode can be availed.
8. In case, If the mode of payment is done offline, then the Demand Draft (DD)/ challan is the name of NSDL-TIN should be sent to NSDL office.