Dear all,
When TAN no becoem Mandetory?
Sandeep Keswani
(Tax Consultant)
(1064 Points)
Replied 23 May 2009
Hi Aniket ! TAN is required for the purpose of deduction of tax at source and payment thereof with the govt. When a person is supposed to deduct tax (TDS) from payments made by him to others in the nature of Salary, Interest, Commission, Contractual payments, Rent, etc. he is supposed to file TDS quarterly statements in Form No. 24Q, 26Q, etc. Also for payment of TDS with the government (through Challan No. 281), TAN is necessary.
Thus TAN is required for any transaction relating to deduction and payment of tax at source.
Monika Bachhawat
(Chartered Accountant)
(211 Points)
Replied 25 May 2009
| Originally posted by :aniket | ||
| " | Dear all, When TAN no becoem Mandetory? |
" |
A person is supposed to deduct tax (TDS) from payments made by him to others in the nature of Salary, Interest, Commission, Contractual payments, Rent, etc, once he is liable to tax audit as per section 44AB of Income tax Act 1961 & crosses the threshold for payment. Once he becomes liable he need to apply for TAN no. & needs to deduct TDS if its crossing the threshold .
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