Find
Anyone required to deduct TDS must hold a TAN and quote it. Not applying for TAN can attract a ₹10,000 penalty under Sec 272BB (now Sec 468), besides interest and default for the TDS itself.
ITR
Running a business without TAN and TDS defaults
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Provisions
Sec 272BB, Income-tax Act 1961 (now Sec 468, Income-tax Act 2025); Sec 201, Income-tax Act 1961 (now Sec 398, Income-tax Act 2025); Sec 194C, Income-tax Act 1961 (now Sec 393(1) Table Sl. No. 6(i), Income-tax Act 2025)
Analysis
Individuals buying property or paying high rent use PAN-based Forms 26QB or 26QC and do not need TAN. Regular deductors such as businesses under audit do. Example: a shop owner under audit paid ₹1,50,000 to a contractor without TDS; get a TAN, deduct and pay the TDS with interest, file the statement, and the 30% disallowance can be avoided if paid before the return due date.
Close
- Apply for TAN through Protean or UTIITSL
- Deduct and deposit the TDS with interest
- File the TDS statement for the quarter
- Keep TAN on all challans and certificates
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