TIN-PAN Services
PAN
The
Permanent Account Number (PAN) is a unique ten-digit alphanumeric number issued
by the Government of India to all tax payers. It is a universal identification
tool that tracks all financial transactions taxable by the Government. This
permanent number assigned to the PAN holder serves as an essential ID proof. It
is allotted to each tax payer by the Income Tax Department of India under the
supervision of the Central Board of Direct Taxes. The PAN does not change during
the lifespan of the PAN holder.
e-TDS
All
corporate and non-corporate tax deduction entities making payments specified
under the Income Tax Act, to third parties are required to deduct tax at source
(Tax Deducted at Source -TDS) from these payments and deposit them with any
designated bank branches authorized with the collection of taxes on behalf of
the Government of India. They are also required to furnish TDS returns with
third parties' details and challan details on the tax deposit to the IT
Department.
The
Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003 is
applicable to all entities deducting tax, who furnish their TDS return in
electronic form. As per this scheme:
- From June
1, 2003, it is mandatory for corporate entities deducting tax, to furnish
their TDS returns in electronic form (e-TDS return).
- From the
F.Y. 2004-2005, it is mandatory for Government entities deducting tax, to
furnish TDS returns in electronic form.
- Entities
other than the Government and corporates may file TDS returns in
electronic or physical form.
Benefits of TDS Online Payment
- Availability
of 24*7 Payment facility on all 365 days of the year
- Convenience
in terms of time and place for the deductor to make the TDS payment as
convenient
- TDS Online
Payment acknowledgement on immediate basis
- Facility to
download the challan acknowledgement copies and save them easily for
reference in the future
- Significant
decrease in the chances of corruption and other malpractices like the
discretionary grant credit of tax deductions based on manual TDS
Certificates etc. due to a secure, transparent system online
- Also,
e-filing TDS makes it environment friendly due to the saving of paper to a
great extent and in great quantity
Timelines for TDS Payment
- The fixed
due date for TDS payment to be collected by the deductor is the 7th of the
next month. For instance, the deductor is required to pay the TDS for
June, either on or before the 7th July.
- However, it
is only for the March month, since it is the financial year end, that the
deductor is allowed to pay the deducted TDS amount, either on or before
the 30th April of that particular year.
- The timelines
for payment apply to all the deductors, i.e. the non-Government assesses
and the Government assesses, those who submit their tax with Challan i.e.
the Treasury Challan.
- The set due
date for TDS payment is the same day on which the amount of tax is deducted;
this is exclusively for the Government deductors, who make their TDS
payment without any challan.
- In certain
specific circumstances, the Assessing officer (AO), with prior approval
from the Joint Commissioner, may choose to permit the quarterly TDS
payments to be made. Therein, the last date of TDS payment will be the 7th
of the next month, from then, post each quarter end and 30th April for the
financial year’s last quarter.
TAN
TAN
or Tax Deduction and Collection Account Number is a 10 digit alpha numeric
number required to be obtained by all persons who are responsible for deducting
or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is
mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income
Tax Department (ITD) on all TDS returns.
