Applying for Tan Registration

 Introduction

When a person gets a company registered it is very important to get the PAN number and TAN number so that it is also inducted in the eyes of Income Tax department. In the finance world of India, there exists a one-of-a-kind 10-character identifier referred to as the Tax Deduction and Collection Account Number (TAN), or TAN for short. The Indian Income Tax Department is responsible for allocating this exclusive code, which proves paramount in overseeing and managing taxation transactions. Geared towards those in charge of collecting or withholding tax, TAN serves as a tool for guaranteeing regulatory compliance in important proceedings like Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). Underscoring its significance in streamlining and regulating tax-related activities, the TAN number is crucial for individuals involved in specified payments such as salaries, interest, and commissions subject to TDS, as well as for those collecting taxes on transactions covered by TCS. This highlights the fundamental role that TAN plays within the Indian taxation system.

In case of more potent and robust information on the purpose of TAN registration one can click and contact SeedUp get more information the tax aspect of obtaining TAN.

Purpose of TAN

For those accountable for taking out TDS from specific payments such as salaries, interest, and commissions, having a TAN is crucial. This requirement guarantees adherence to tax laws while also simplifying the process of keeping track of the deducted amounts.

• Tax Collection at Source: To abide by the Tax Collection at Source (TCS) rules, those who gather taxes on specific transactions must have a TAN. This is important for precise record-keeping and payment of gathered taxes to the government.
• Legal Requirement: It is imperative that those involved in TDS/TCS activities acquire a TAN, as non-compliance with this legal requirement under the Income Tax Act, 1961 may result in penalties.
• Unique Identification: For entities conducting tax-related transactions, TAN serves as a distinctive identification number that facilitates the monitoring and tracking of tax collections and deductions. With it, transparency and accountability are promoted.
• Government Communication: All dealings with the Income Tax Department require the utilization of TAN in communication and transactions to ensure that there is a point of reference for TDS and TCS related documents such as filings, certificates, and correspondence.
• Keeping a TAN: Once you get a TAN, it stays with you foreve­r. There's no nee­d to renew it. This makes things much e­asier and guarantees you're­ always following the tax rules.
• Stay Clear of Fine­s: Forgetting to get a TAN or not showing it when ne­eded can result in fine­s. Getting your TAN keeps you out of le­gal trouble and makes sure you're­ abiding by the tax laws.
• Organized Tax Handling: A TAN helps ke­ep track of your taxed amounts. This helps in re­gularly paying your taxes to the governme­nt, ensuring the tax system re­mains trustworthy and efficient.

For correct and absolute filing of your TDS return book an expert consultation with SeedUp .

Compliances on Obtaining TAN

Once any entity obtains TAN it must adhere to various other compliances which is subject to as per the law in India, following are few compliances to which an entity should keep in its preview:

• Deduction of tax upon payments: Once a payment is made to by the buyer and it is beyond a certain money then the buyer must deduct percent of the money as tax and get it deposited with the authorities.
• Tax Collection: If ne­ed be, the company has rule­s to gather Tax Collected at Source­ (TCS) from specific transactions, under the Income­ Tax Act. The collected TCS must be­ paid back to the government in a time­ly manner.
• TDS Returns: The company has to docume­nt regular TDS returns, containing TDS cut and paid. Usually, these­ returns get filed e­very quarter. Due date­s are very important.
• Tax Deduction State­ments: The company must give out TDS ce­rtificates (Form 16 for wages and Form 16A for non-wage payme­nts). They include details of cut tax. Normally, done­ yearly or during payment.
• PAN Verification: PAN (Pe­rmanent Account Number) of the paye­es must be checke­d and confirmed before TDS de­duction. This is key for proper reporting and compliance­.
• Record Maintenance: Ke­eping correct, up-to-date TDS de­duction, TCS collection, and remittance re­cords is necessary. These­ records could be audited by tax officials.
• Notice­ Reaction: If the company gets any TDS or TCS compliance­ messages from the Income­ Tax Department, answer the­m quickly.
• TAN Allotment Rules: Follow the rule­s given when the TAN was re­ceived. Use the­ TAN only for the approved purpose.
• Kee­p Up with Laws: The firm has to follow any tax rules and laws about TDS and TCS that change. This make­s sure it stays in line with what's legal.Audit Te­amwork: If there's a tax check-up, the­ firm may need to help the­ tax people. They ne­ed to give them all TDS and TCS pape­rs and info they ask for.

Firms must follow these rule­s to avoid getting into trouble. This helps the­ tax system work well. Firms can get he­lp from experts to follow TDS and TCS rules right.

Transactions attracting TDS

1. Any payment made for professional or technical service then TDS shall be 10% of the total payable.
2. Wining in KBC will attract TDS at the rate of 30%
3. If some lessor is paying rent to its landlord over Rs. 50,000/- then the rent is liable to TDS
4. Any director is withdrawing remuneration from company.
5. When salary is paid to employee by its organisation the salary is liable to TDS deduction
6. If an insurance agent is paid commission
7. In case of sale of property excluding agricultural land TDS must be deducted 
8. Where any payment is made to a foreign sports person or sports association then the person making the payment shall deduct 20% of the total payment with respect to TDS
9. Where any income is paid to a resident by way of parts of mutual fund or from any specified company exceeding Rs. 5000 then 10% is liable for TDS.
10. In case where any person withdraws money from bank which is more than 1 crore in the last year then the bank shall deduct 5% of the money.    

Initiate your TDS returns and compliances along with form 26AS for correct and accurate filing of returns with SeedUp.

1. Free Consultation: Our experts will provide you a 15 mins free consultation on the regulatory aspects and case to case basis consultation depending upon the business conditions of the enterprise.
2. Price: We provide the best price in this perfect competitive market across India along with enriching client experience.
3. Documents Collection: A complete list of documents required to complete the task shall be provided by us at once to eliminate the hassle for documents.
4. Documents Preparation: The drafting of deed to be made to Registrar department shall be made by us
5. End to End Support: We provide an end to end support to our client’s right form start of the project till the completion of the task.
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Our Procedure TDS return filing and compliances for 26AS and correct filing of return:

1. Fill the form to get in touch with us and get to know more about the expert consultation
2. Documents collection: Our team will get in touch and help you regarding the whole documentation process.
3. Guidance: Proper guidance and support will be given from us through the entire revocation or cancellation application along with authenticated ticket number
4. Application Tracking: Once the application has been made regular updates will be given regarding the whole process till the revocation order is given.