Is TAN required for small business ?

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This discussion clarifies whether small businesses require a TAN (Tax Deduction and Collection Account Number). Generally, a TAN is compulsory for all entities except individuals and HUFs whose books aren't audited. If you pay commissions exceeding a certain threshold in a year, you are likely liable to deduct TDS and therefore need to obtain a TAN. Failure to do so can result in a penalty of Rs. 10,000.

Javed Memon

Javed Memon (Querist)
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31 December 2022 Respected Sir

Is TAN required for small business ?

Who is Liable to deduct tds and Required TAN for deducting tds
supppose if i pay Commission to one person For amount of 35000 in a year
am i liable to deduct tds and obtain TAN ??

CA Kamlesh Kukreja

CA Kamlesh Kukreja (Expert)
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31 December 2022 TAN is Compulsory For Every Person Except in case of individual & HUF where Books are Not Audited Earlier. small or big Business is not criteria for Determining Requirement of TAN

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CA Kamlesh Kukreja

CA Kamlesh Kukreja (Expert)
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31 December 2022 Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-

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