Tax deducted at source (TDS), which is indirect form of advance tax, to be collected at first stage instead of receiving tax on the person’s income at later stage.

Tax Deduction & collection Number (TAN) having 10 digit alpha numeric characters is mandatory requirement by those who are responsible for TDS & TCS (Tax collection at source) on behalf of government.

Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding such prescribed limits under relevant act.

TDS is deducted as a percentage of overall payment, and may range from 1% to 30% of actual payable amount.

Those entities have TAN Registration must then file TDS returns. TDS returns are due on quarterly basis.

Late filing of TDS return attracts late filing fees of Rs. 200 per day.