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TDS registration

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Ramachandran R

129 Points Posted on 31 March 2021

Hi,

I've to pay sales commission to a person for Feb, March months which cross the limit & I've to reduce TDS as per rule.

I don't have TAN and have to apply now.

Can I apply for TAN in Apr month(new financial year) & reduce TDS amount for March month & make payments and file TDS return by May end. OR I've to get TAN number in the same financial year itself.

Thanks in advance

Replies (2)

Quick Summary

This discussion addresses the process of registering for Tax Deducted at Source (TDS) when sales commissions exceed the threshold. The user needs to apply for a TAN (Tax Deduction and Collection Account Number) and is asking if they can apply in the new financial year (April) to reduce TDS for the previous financial year's March payments. The advice given is that you can obtain the TAN in April and then make the TDS payments. However, it's crucial to note that if the TDS remittance is not made by the due date (30th April for March), interest will be charged from the deduction date until the payment date.

Kapadia Pravin

10683 Points Posted on 31 March 2021

You may get TAN first in April and then pay off TDS amount. Not necessarily you have to first obtain TAN.

CMA Poornima Madhava

CMA

9106 Points Posted on 31 March 2021

I agree with Pravin. However, if you don't make remittance of TDS within due date (for Mar due date is 30/04/21), you are required to pay interest at applicable rates from the date of deduction till the date of payment of TDS.