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

Sunita Pvt Ltd pays rent and professional fees on which it deducts tax at source. Its accountant says that quoting PAN on the TDS return is enough and no TAN is needed. Which reply is correct?

TAN is compulsory for the company because it deducts tax at source, whether on rent, professional fees or salary. PAN is quoted alongside it but cannot replace it. There is no employee-count or payment-mode condition for obtaining TAN.

  1. ATAN is required for the deductor, and PAN alone cannot be quoted in its place on TDS returnsCorrect
  2. BTAN is required only if the company has more than twenty employees
  3. CTAN is needed only for salary deductions, not for rent or fees
  4. DTAN is needed only when TDS is deposited in cash

Explanation

Every person deducting or collecting tax at source must have a TAN, whatever the nature of payment. Salary-only and employee-count conditions do not exist, and mode of deposit is irrelevant. The company's PAN is also quoted but does not replace TAN.

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