Running a successful business feels great—until tax season sneaks up and one small mistake throws everything off balance. That’s where the Tax Deduction and Collection Account Number (TAN) becomes your reliable compliance ally. Issued by India’s Income Tax Department, this ten-character alphanumeric code ensures that tax deductions and collections are monitored with precision and legal accuracy.
TAN verification isn’t just about ticking boxes; it’s about safeguarding your business against costly mistakes. It ensures that the tax deducted or collected is correctly attributed, helping you maintain compliance and credibility. Plus, it saves you from the headaches of rejected returns or hefty fines.
TAN verification, a process of validating the accuracy and authenticity of TAN details, is crucial for maintaining compliance with tax regulations. This blog explores TAN verification, its process, its benefits, and why it’s indispensable for businesses.
What is TAN Verification?
TAN verification is the process of checking the validity of a TAN against the database of the Income Tax Department. This will ensure that the details associated with the TAN are correct and match the official records. It is an important step to avoid errors in tax filings and avoid penalties or legal complications. For businesses that frequently deduct or collect tax, verification of TAN details before filing returns helps avoid delays and ensures accurate tax credit allocation to the rightful recipients.
Why is TAN Verification Important?
- Compliances of Laws: The Indian Income Tax Act makes TAN liable to file the returns of TDS/TCS. Invalid usage of TAN results in heavy penalties and distracts business activities.
- Accurate Tax Transactions: TAN verification ensures that the correct tax is deducted or collected and attributed to the right accounts, minimizing errors in tax credits.
- Prevention of Penalties: Incorrect details of TAN can lead to the rejection of tax returns. This can attract penalties, thus causing financial and reputation damage.
- Efficient Tax Management: TAN verification helps make the tax processes less cumbersome and time-consuming while maintaining the confidence of stakeholders by ensuring compliance.
Step-by-Step Process of TAN Verification
Verifying TAN is straightforward when using the official e-filing portal or other authorized platforms. Here is the step-by-step guide:
Step 1: Visit the Income Tax Department’s e-filing portal or NSDL’s official TAN verification site.
Step 2: If you’re already registered, log in using your credentials. New users must complete a simple registration process to gain access.
Step 3: Once logged in, locate the “TAN Verification” option under the “Services” tab.
Step 4: Next, select the “Deductor Type” from the deductor category as indicated below:
- Statutory Body/ Local Authorities/ Autonomous Bodies
- Firms/ AOP (Trust)/AOP/ Artificial Judicial Person/ Body of Individuals
- Branch of individual business/ Hindu Undivided Family (Karta)
- Branch of firms/ AOP (Trust)/ AOP/ Artificial Judicial Person/Body of Individuals
- Individual/ Hindu Undivided Family (Karta)
- Branch of Company
- Company
- Central or State Government
Step 5: Next, choose “State” from the option that drops down.
Step 6: Enter the TAN Number or Name as you see fit. After verifying the number against its database, the system will show the results.
Step 7: The verification results will confirm whether the TAN is valid and provide associated details such as the name of the holder and jurisdiction.
If you frequently verify TANs or need to handle bulk verifications, consider partnering with third-party providers. They offer APIs and tools for seamless bulk verification, allowing easy integration with your system for enhanced efficiency and accuracy.
Benefits of TAN Verification
- Accuracy in Tax Filings: Verification of TAN ensures that every tax deduction or collection is directly linked to the correct account to avoid errors at the time of filing.
- Legal Assurance: Confirmed TAN details ensure that businesses are not penalized for tax evasion and that operations run smoothly.
- Fraud Prevention: The verification of TAN helps the business avoid risks of fraud or identity misuse in tax transactions.
- Time and Resource Efficiency: Accurate verification minimizes delays in tax filings and eliminates the need for repeated corrections.
- Improved Credibility: Tax compliance by proper TAN verification creates credibility with the stakeholders, such as clients, vendors, and regulatory bodies.
Conclusion: Streamline Tax Compliance with Verified TAN
TAN verification is more than just a formality. It is an important element of efficient and compliant tax management. Verifying TAN details will help avoid errors, prevent the inconvenience of stopped payments, and preserve a good reputation for being transparent and reliable.
The mantra should be simple for businesses: verify TAN regularly, follow the regulations, and streamline the tax process. TAN verification through our API becomes an effortless, pain-free task that will pay off in the long run. Our TAN verification API helps organizations avoid manual errors, ensuring accuracy in filing TCS/TDS and saving precious time.
Explore our TDS compliance check API to validate TAN details in a jiffy, error-free TDS filing, and take the lead in tax compliance.
FAQ:
What happens if my TAN details are incorrect?
If the TAN details are invalid, your returns of TDS/TCS are liable to get rejected, besides attracting penalties due to non-compliance.
How often should I verify my TAN?
It’s advisable to verify TAN details before every tax filing or whenever significant changes occur in business operations.
What details are needed for TAN verification?
You need your TAN and basic information, such as the name and address linked to it, to verify its validity.
How can I verify my TAN?
By entering the TAN details, TAN can be verified through the Income Tax Department\u2019s e-filing portal or authorized platforms like the NSDL\u2019s website.
Why is TAN verification necessary?
It ensures compliance with tax regulations, prevents penalties for incorrect TAN usage, and helps maintain accurate tax records.
