TAN No

Hi Aniket ! TAN is required for the purpose of deduction of tax at source and payment thereof with the govt. When a person is supposed to deduct tax (TDS) from payments made by him to others in the nature of Salary, Interest, Commission, Contractual payments, Rent, etc. he is supposed to file TDS quarterly statements in Form No. 24Q, 26Q, etc. Also for payment of TDS with the government (through Challan No. 281), TAN is necessary.

Thus TAN is required for any transaction relating to deduction and payment of tax at source.

A person is supposed to deduct tax (TDS) from payments made by him to others in the nature of Salary, Interest, Commission, Contractual payments, Rent, etc, once  he is liable to tax audit as per section 44AB of Income tax Act 1961 & crosses the threshold for payment. Once he becomes liable he need to apply for TAN no. & needs to deduct TDS if its crossing the threshold .