PAN and TAN Registration

Definition

PAN is required for all entities; TAN (Tax Deduction Account Number) is needed before you start deducting TDS on salaries above the threshold or contractor payments.

• SourceIncome-tax Act, 1961 — Section 139A (PAN) and Section 203A (TAN)incometax.gov.in

What it means in practice

PAN and TAN Registration is administered by Income Tax Department / CBDT. The obligation is grounded in Income-tax Act, 1961 (Section 139A (PAN) and Section 203A (TAN)).

Trivial step but a hard prerequisite for opening a current account, GST registration and the Udyam form.

• SourceIncome-tax Act, 1961 — Section 139A (PAN) and Section 203A (TAN)incometax.gov.in

Triggers (applicability predicates)

These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.

• entity_exists=true
• deducts_tds=true (for TAN)

Deadlines and penalty

Cadence: one_time

Penalty for default: Failure to obtain TAN before deducting/remitting TDS attracts Rs 10,000 penalty under Sec 272BB.

Citations

• SourceIncome-tax Act, 1961 — Section 139A (PAN) and Section 203A (TAN)incometax.gov.in