Frequently Asked Questions
1What is a TAN number?
TAN is Tax Deduction and Collection Number. TAN is a 10 digit alpha numeric 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.
2TAN number is required by whom?
TAN number is mandatory for business entities to deduct tax at the source and pay the same to the government. It is quoted in all the TDS Certificates and TDS Filings.
3Which documents are required to get a TAN?
To obtain TAN, application must be made in Form 49B at any of the authorized TAN Facilitation Center.
4What rate the tax has to 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/-
5How many days does it take get a TAN number?
It takes 5-10 days to get a TAN number from the date of the application along with the required documents.
6Can a PAN be used instead of TAN?
No, a PAN cannot be used instead of TAN, PAN and TAN serve two different purposes. Therefore, it is mandatory for those deducting tax at source to obtain a TAN
7How and when the TDS must 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.
8What are the due dates to 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