TDS means Tax Deducted at Source. It is the amount deducted from payments of various kinds such as salary, contract payment, commission, etc. This deducted amount can be adjusted against the tax due to the deductee.

TAN is an alphanumeric 10 digit number required by a person who is liable to deduct TDS and file TDS return. Thus such a person must make an application within a month in which TDS was deducted for allotment of Tax Deduction and Collection Number (TAN) in form 49B. This number allotted is mandatory to mention in all TDS Certificates issued, returns, challans, etc. If a person fails to apply for TAN he may be penalized up to Rs. 10,000/-.

Once the documents and application are verified & confirmed by the department the TAN number will be communicated to the Deductor by NSDL.

PAN of the deductors has to be given by non-Government deductors. It is essential to quote PAN of all deductees.

The quarterly return will be filed online with user id & password with Digital signature of the Authorized person and we can also file a return online and then submit Form 27 & 27A to the department by physically signing the form.

Every person deducting tax as per provisions of section 203 is required to issue a certificate to the payee in respect of tax deducted by him along with certain other particulars. This certificate is called TDS Certificate. Once the TDS return is filed, the TDS certificate can be generated within 15 days to the payee. The payee can opt for an annual TDS certificate rather than receiving a quarterly TDS certificate.

Non Payment leads to Interest@ 1.50% p.m. or 18% p.a. from the date on which tax is deducted to the date of its payment. Failure to file quarterly TDS Returns in time late fee @ Rs. 200/- per day maximum of TDS amount) Section 234E.