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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Rohan Textiles Pvt Ltd, a newly incorporated company, deducts tax at source from salaries paid to its employees. Which registration must it obtain so that it can quote the number on TDS returns and challans?

The company must obtain a TAN, the Tax Deduction and Collection Account Number. It is mandatory for anyone deducting or collecting tax at source and must be quoted in TDS or TCS returns, challans and certificates. Employees' PANs, IEC or Udyam numbers cannot replace it.

  1. ATax Deduction and Collection Account Number (TAN)Correct
  2. BPermanent Account Number of each employee only
  3. CImporter-Exporter Code
  4. DUdyam Registration Number

Explanation

A person who is required to deduct or collect tax at source must obtain a TAN and quote it in TDS/TCS returns, challans and certificates. PAN of employees is quoted for their credit but does not replace the deductor's TAN. IEC and Udyam relate to trade and MSME classification, not TDS.

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