TAN & TDS Mandatory for proprietorship business
This query is : Resolved
md asif iqubal
(Querist)
08 October 2025
Hello Sir/Madam,
I have a newly registered proprietorship Export business (Merchant Exporter). My estimated annual turnover is below 1 Cr. for FY2025-26.
I have some invoices of freight forwarder, Shipping lines and professionals to pay. I want to know whether I need to take a TAN number and deduct the TDS, is it mandatory for me or an option only.
Please guide me accordingly.
Thanks
I have a newly registered proprietorship Export business (Merchant Exporter). My estimated annual turnover is below 1 Cr. for FY2025-26.
I have some invoices of freight forwarder, Shipping lines and professionals to pay. I want to know whether I need to take a TAN number and deduct the TDS, is it mandatory for me or an option only.
Please guide me accordingly.
Thanks
Dhirajlal Rambhia
(Expert)
08 October 2025
If an Individual or HUF’s total sales, gross receipts, or turnover in the preceding financial year is less than ₹1 crore (business) or ₹50 lakh (profession), they are generally exempt from the obligation to deduct TDS on payments under sections 194C (contractors), 194J (professional services), and similar sections—unless covered by special sections.
The obligation to deduct TDS is based on specific limits specified in the section, not dependent solely on overall business turnover. Even if annual turnover is below ₹1 crore, TDS and thus TAN may be necessary if individual payments cross specified limits.
So, TAN is mandatory when conducting transactions where TDS provisions are applicable, otherwise for new proprietorship firm it is not mandatory.
The obligation to deduct TDS is based on specific limits specified in the section, not dependent solely on overall business turnover. Even if annual turnover is below ₹1 crore, TDS and thus TAN may be necessary if individual payments cross specified limits.
So, TAN is mandatory when conducting transactions where TDS provisions are applicable, otherwise for new proprietorship firm it is not mandatory.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation Error – Mandatory Fields
- GSTR9 Annual Return
- GST ITC as per notification 12/2023- central tax
- Rent agreement of House of deceased person
- Form 144 TDS Return Validation error
- Capital Gains Tax on Inherited Mutual Fund
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
