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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
The ten-character number an employer must hold under Section 203A of the Income-tax Act before deducting tax at source. It is quoted on every TDS payment challan, on Form 24Q and on Form 16, and an entity with several deducting branches may hold more than one.
Not the company's PAN. PAN identifies the taxpayer; TAN identifies the deductor for TDS purposes, and both appear on Form 16.
HR and payroll touch the TAN mostly in two places: every time monthly TDS is deposited through the challan, and each quarter when Form 24Q is filed. If the TAN on the challan and the return do not match, the deposit does not map to the return and employees' tax credits do not show in their records.
The TAN also has to be registered on the TRACES portal, which is where Form 16 Part A is downloaded once the quarterly returns are processed. Someone in finance usually holds the login, and payroll should know who, because Form 16 issue depends on it in the weeks before employees file returns.
Companies with several branches doing their own payroll sometimes hold separate TANs. In that case every employee's TDS must be deposited and reported under the TAN of the branch that paid them, and a transfer between branches mid-year should be planned so each branch reports only its own months.
Any employer or other person required to deduct or collect tax at source. A company paying salaries above the taxable limit needs one before it deducts TDS.
On TDS challans, quarterly TDS returns such as Form 24Q for salaries, and on Form 16 issued to employees. Errors in the TAN can mean deposits are not credited correctly.
Yes. PAN identifies the taxpayer for its own income tax; TAN identifies the deductor for TDS compliance. A company needs both.
A company can use one TAN, but branches that deduct TDS separately can get separate TANs. Whatever the setup, each payment and return must use the TAN under which the tax was deducted.
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