Tax Deduction and Collection Account Number- TAN Registration
TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric number required to be obtained by all persons responsible for deducting or collecting tax. Also, tan registration is allotted by the Income Tax Department.
As per the Income Tax Act, 1961, once tan registration is obtained, it is mandatory to quote TAN allotted by the Income Tax Department on all TDS returns.
Salaried Individuals are not required to obtain tan registration or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.) must obtain tan registration and deduct tax at source while making certain payments if they exceed a specified threshold. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax.
For obtaining tan registration, Form 49B is filled along with required supporting documents.