Who must obtain a TAN?
Salaried Individuals are not required to deduct tax at source. However, individuals who run a proprietorship business are required to deduct tax at source. All other entities like LLP, Private Limited Company, Limited Company, Trust, Society, etc., are required to obtain TAN and deduct tax at source.
What are the documents required to obtain TAN?
To obtain TAN, an application must be made in Form 49B at any of the authorized TAN Facilitation Center.
At what rate should TAX be deducted at source?
Tax deduction at source happens at different rates based on the transaction. TDS rate for salary is determined based on the employees’ salary and tax payable by the employee. The tax rate varies depending on the type of transaction. A rate of 10% is applicable for deducting TDS on rent of land, building or furniture if rent fir entire year exceeds Rs.1,80,000. See a complete list of TDS rates.
What are the due dates of filing TDS Returns?
15th of every July, October, January, and May are the due dates for filing quarterly TDS return. Any delay in furnishing your return will result in a penalty of Rs 200 per day not exceeding the total amount of TDS for the quarter.
How much time does it take in issue of a new TAN?
TAN card gets delivered usually within 7-15 business days. The decision however solely depends upon the Issuing Authority of Govt of India. ClearTax shall provide you with the tracking details once application is submitted.
Is there any penalty if i don’t quote TAN?
It is mandatory for all assessees to quote TAN who are required to deduct TDS on payments made. The TAN number has to be quoted in all the communications with tax department failing which may attract a penalty of Rs. 10,000/-. The banks also don’t entertain TDS payments and TDS returns if the TAN number is not quoted.