TAN for properitor firm

our new firm open under properitorship (service category) for which we applied gst and pan , should we require TAN for tds deduction , is it applicable for any turnover limit.
Replies (2)
Quick Summary
This discussion clarifies the need for a Tax Deduction and Collection Account Number (TAN) for proprietorship firms. A TAN is only required if you are liable to deduct TDS on payments made to creditors or for salaries. There is no mandatory turnover limit to apply for a TAN; it's based on your obligation to deduct TDS. For individuals and HUFs, TDS deduction liability arises if your turnover exceeds INR 1 crore for business or INR 50 lakh for profession in the preceding financial year.

Tan is required only when you are liable to deduct any TDS over the payments made to your creditors, salary paid etc.. It can be applied whenever required. You need not apply if not applicable in the beginning. Its not based on any turnover limit.

For individual and HUF, the requirement of deducting tax arises only if the total sales, gross receipts or turnover from the business or profession carried on by him exceeds INR 1 crore in case of business or INR 50 lakh in case of profession during the financial year immediately preceding the financial year in which the payment on which tax is deductible. For e.g., In FY 2021-22, an individual is paying INR 100,000 towards professional fees. The said individual (i.e. payer) will required to deduct tax from the payment provided his (i.e. payer) total sales, gross receipts or turnover from the business or profession exceeds INR 1 crore /  INR 50 lakhs (as the case may be) in FY 2020-21. In such an event, he should be required to obtain TAN

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Follow