TAN Registration refers to the process of obtaining a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department of India. TAN is a unique 10-digit alphanumeric code that is mandatory for anyone responsible for deducting or collecting tax at source (TDS/TCS) on behalf of the government.
Every business entity—be it a proprietorship, partnership firm, LLP, or company—that deducts TDS while making certain payments (like salaries, rent, or contractor fees) must have a valid TAN. Without TAN, the deductor cannot deposit TDS, file TDS returns, or issue TDS certificates (Form 16/16A). Failure to obtain TAN can lead to penalties and issues in tax compliance.
TAN Registration is a crucial compliance step for businesses during onboarding, vendor payments, payroll processing, or contract services. It is usually required early in the business lifecycle, especially before making transactions that involve TDS deductions. Registration is done online through the NSDL portal or via facilitation centers.
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In summary, TAN Registration ensures that your business can legally deduct and deposit taxes at source, helping you stay compliant with Indian tax laws.