TAN Applicability For Individual & HUF

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This discussion clarifies when individuals and Hindu Undivided Families (HUFs) must obtain a Tax Deduction and Collection Account Number (TAN). It explains that TAN becomes compulsory if TDS is mandatory to deduct, such as on salaries, or if the business turnover exceeds ₹1 crore in the preceding financial year and TDS is applicable on payments like professional fees. The presence of both turnover exceeding a threshold and a liability to deduct TDS makes TAN a requirement for depositing the deducted tax.

Javed Memon

Javed Memon (Querist)

04 February 2025 Respected Sir

in case of Individual & HUF When it Compulsory to obtain TAN ?

Some Consultant Said it is based on t/o and Some said it is based on Audit

now if it is based on audit than

44ABa-Clause 44AB(a)- Total sales/turnover/gross receipts of business exceeding specified limits;

44ABe-Clause 44AB(e)- When provisions of section 44AD(4) are applicable;

if t is based on audit than both Section of Audit TAN is applicable or Only 44AB(a) Audit applicable for TAN Requirement

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 February 2025 TDS is applicable if business turnover exceeded 1 Cr. in preceding year, for certain specific sections. (like professional fees etc.) Other than those if TDS is mandatory to deduct (like Salary) TAN becomes mandatory.

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Javed Memon

Javed Memon (Querist)

08 February 2025 Respected Sir
So its mean if any person T/o is more than 1 Crore in Preceeding Finacial Year AND TDS Deduct Liability
( Payment Exceeding Threshold limit) Both Event is there , then only TAN is Required

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 February 2025 Yes, in that case TAN is required for TDS deduction and depositing the same to treasury.

Javed Memon

Javed Memon (Querist)

11 February 2025 Thanks a lot sir for your quick responses

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 February 2025 You are welcome.

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