Tan appln - is it mandatory when no tds ?

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Venkat (Querist)
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22 March 2014 Dear Experts,

Good morning,
I have been running a marriage hall for a few months now, this business is not registered.
I understand i can use ITR-4S (u/s 44AD) for filing returns with my PAN & no service tax applicable yet as the gross receipts still less than 9 lacs.

Could you shed some lights on the following:

1) Should i apply for TAN and report/deposit any TDS, is it mandatory below case?
-I have 3 people working(a manager, a watchman, a housekeeper) in the hall,
whose individual's payment is still less than Rs. 2 lacs annaul income band (and no TDS)
-The annual rent paid to the owner is Rs. 1.8 lacs (and so no TDS)

2) Should i register this business anywhere and get any registration number/ID ??
(i have approvals from municipality/police/fire departments etc)

Thank you & Good day,

CA Jitender Sharma

CA Jitender Sharma (Expert)
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22 March 2014 1. There is no need to have TAN as no tds liability generate as per above pt 1.

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Venkat

Venkat (Querist)
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22 March 2014 Dear Sir,

Thank you for your time/confirming that NO need to apply/get a TAN as long as NO TDS liability arises.

An accountant mentioned that shops (e.g. hair saloons, grocery, restaurants) were hanging TAN/TIN info on their walls, so you should get one too ?! This sounded pretty strange to me and wanted to get expert's confirmation to be on safer side.

Regards,

Venkat

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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26 July 2025 Here's the clear answer based on your query about TAN application when there's no TDS liability:

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### Is TAN Mandatory If There Is No TDS Deduction?

**Short Answer:**
No, **TAN is not mandatory if you do not have any TDS/TCS liability.**

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### Explanation:

* **TAN (Tax Deduction and Collection Account Number)** is required only if you are responsible for deducting or collecting tax at source under the Income Tax Act.
* If you are **not deducting or collecting TDS/TCS**, you do **not need to apply for TAN**.
* In your case:

* You have employees but their payments are below the threshold for TDS deduction.
* Rent paid is below the TDS limit.
* You don’t have any other TDS liabilities.

So, **you are not required to obtain TAN**.

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### About Displaying TAN/TIN at Shops:

* Some shops/restaurants show their TAN or TIN number as a compliance or trust factor, but it's not mandatory unless they have TDS/TCS obligations.
* If you are not deducting TDS, you don’t need TAN, so no need to display it.

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### Registration for Business:

* Separate from TAN, your business might require other registrations depending on local laws (like GST registration if turnover exceeds threshold, or municipal licenses).
* Since you mentioned you have approvals from municipality and other departments, that covers many compliance needs for running the business.

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**Summary:**
No TDS liability → No TAN needed → No mandatory display of TAN.
Keep your PAN ready for filing returns.

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If you want, I can help you with any further compliance questions!

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