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

Javed Memon

Javed Memon (Querist)
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11 February 2025 Thanks a lot sir for your quick responses

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 February 2025 You are welcome.

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