Who is Allowed to Apply for TAN?
Every individual who is obligated to deduct and collect income tax on behalf of the Income-tax authorities must apply for TAN. Furthermore, TAN must be included in every TDS/TCS return, TDS/TCS payment challan, certificate to be issued and so on. Failure to apply for TAN may result in the imposition of a penalty. Persons liable to deduct or collect tax at source must get a TAN from the Income Tax Department. There are, however, exceptions to this rule. These are the following:
1. Persons deducting tax under section 194-IA of the Income Tax Act can use their PAN instead of their TAN because TAN is not required.
2. Persons deducting taxes under sections 194-IB or 194-M do not need to get TAN.