TAN registration is very important for businesses to deducting tax at source and is required to be quoted in TDS or TCS return. TAN stands for Tax Deduction and Collection Account Number. It is a ten-digit alphanumeric number that allotted to those who are supposed to deduct tax at source or TDS on behalf of the Government. Each assessee, liable to deduct TDS, shall quote the TAN in all TDS Returns, TDS payments and other communications regarding TDS with Income Tax Department. Non quoting of TAN number in TDS return would attract a penalty of Rs. 10,000/-. TDS Returns and Payments would not be received by the banks if TAN No. is not quoted. TDS must be deducted while making the certain payment like salary, payments to contractor or sub-contractors, payment of rent, etc. Audit Disciples can help to obtain TAN Registration.
Those entities having TAN Registration must file TDS returns filed by every quarterly and Payment should pay every 7th succeeding month. Non-filing or late filing of TDS returns 2 major consequences will attract
- Fee for late filing U/s 234E and
- The penalty for Non-filing of TDS statement U/s 271H.
Late filing TDS Return under Section 234E will be liable to attract and assessee will liable to pay by way of fee of Rs 200 per day till the failing of a return. However, the total fee cannot exceed the amount of TDS deductible for which statement was required to be filed.
Non-filing of TDS Return under section 271H will attract and the assessee liable to pay a penalty of minimum Rs 10,000 to Rs 1 lakh for not filing the TDS return within one year from the specified date within which he was supposed to file the statement.