TAN Registration

Description

The eligibility criteria and limits for TAN (Tax Deduction and Collection Account Number) registration for NRIs (Non-Resident Indians) are similar to those for residents of India. Here’s an overview:

1. Eligibility:
   • NRIs who are liable to deduct or collect tax at source under the provisions of the Income Tax Act, 1961 are eligible to obtain a TAN.
   • This includes NRIs who are engaged in business activities, investments, or any other transactions in India that attract TDS (Tax Deducted at Source) or TCS (Tax Collected at Source).
2. Limits:
   1. There is no specific turnover or transaction limit for TAN registration for NRIs. If an NRI is liable to deduct or collect tax at source as per the Income Tax Act, they are required to obtain a TAN.
   2. Even if the total amount of tax deducted or collected is nil or negligible, an NRI may still need to obtain a TAN if they fall under the purview of TDS or TCS provisions.
3. Penalties for Non-Compliance:

• • • Failure to obtain a TAN or quoting an incorrect TAN in TDS/TCS returns may attract penalties under the Income Tax Act.
    • The penalty for not applying for TAN when required can be up to Rs. 10,000.

When registering for a TAN (Tax Deduction and Collection Account Number) as an NRI (Non-Resident Indian), you typically need the following documents:

1. Proof of Identity:
   • Copy of your valid passport showing your name, date of birth, and photograph. This serves as the primary document for proof of identity.
2. Proof of Address:
   • Copy of any of the following documents showing your overseas residential address: utility bill (electricity, water, gas), bank statement, or rental agreement.
3. Proof of NRI Status:
   • Proof of Non-Resident Indian (NRI) status, such as a valid visa or work permit from your country of residence.
4. Photograph:
   • Recent passport-sized photograph of the applicant. The photograph should be clear and have a white background.
5. Copy of PAN Card:
   • Copy of the PAN (Permanent Account Number) card of the applicant. TAN is linked to PAN, so providing a copy of your PAN card is necessary for TAN registration.
6. Foreign Address Proof:
   • A document issued in the country of your residence confirming your overseas address. This is separate from the proof of address mentioned earlier, which is for Indian addresses.
7. Additional Documents:
   • Depending on the specific requirements of the TAN registration process, additional documents may be requested.