Tax Deduction or Collection Account Number is a 10-digit alphanumeric number issued by the Income-tax department. TAN is required to obtain by all who are responsible for collecting tax (TCS) or deducting tax (TDS). Dealtax has got detailed information on TAN as to when and how to get TAN.
Compliance after getting TAN
If the 10-digit alphanumeric TAN number is not quoted by eligible persons at requisite places, they can face the prospect of paying a penalty of Rs.10, 000 under Section 272BB (1). If a wrong TAN is provided, the same penalty is imposed on the applicant under Section 272BB.
How one can claim TDS?
The deductor can claim TDS credit.To claim the credit of TDS, the deductee has to mention the details of TDS in his return of income. Deductee should take a due care to quote the correct TDS certificate number and TDS details while filing the ITR. If any incorrect detail is provided by the deductee, then tax credit discrepancy will arise at the time of processing the return of income and the same can cause a problem in processing the return of income.