TDS Registration in India
Tax Deducted at Source (TDS) is a mechanism in India where a person (deductor) responsible for making specific payments is required to deduct tax at source (TDS) before disbursing the payment to another person (deductee). The deducted tax is then deposited to the government’s account. TDS registration is required for entities that are liable to deduct TDS while making certain payments.
Who Needs TDS Registration?
- Individuals/Businesses Making Specified Payments: If you’re a company, partnership firm, proprietorship, or even a resident individual making specific payments exceeding certain thresholds, you might need TDS registration.
- Nature of Payments: The requirement for TDS registration depends on the nature of the payments you make. Common examples include:
- Salary payments (if exceeding a certain threshold)
- Interest payments
- Rent payments
- Professional fees
- Dividends
- Commission payments
Benefits of TDS Registration:
Documents Required for TDS Registration:
The specific documents required for TDS registration can vary slightly depending on your entity type, but generally include:
- PAN card of the deducting entity
- Address proof of the registered office
- Proof of constitution of the business (e.g., partnership deed, MOA & AOA for companies)
- Bank account details
- Authorized signatory details
TDS Registration Process:
TDS registration is typically done online through the TRACES portal of the Income Tax Department (https://www.tdscpc.gov.in/). Here’s a general overview of the process:
- Access TRACES Portal: Visit the TRACES portal and register for a new account if you don’t have one already.
- Select “New Registration”: Choose the “New Registration” option under the TAN Services tab.
- Fill the Application Form: Enter details like your entity type, PAN card details, registered office address, and contact information.
- Submit the Application: Submit the completed application form online.
- Verification and Approval: The Income Tax Department will verify your application.
- TDS Registration Certificate (TAN): Upon successful registration, you’ll receive a TAN (Tax Deduction and Collection Account Number) electronically. The TAN is crucial for filing TDS returns and challan payments.