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What are the Common Terminologies for Tax Deductor?

Taxpayee must knows about common Terminologies for Tax Deductor and its Importance while submission of ITR or e-TDS/TDS or e-TCS/TCS Return. All computerization and Tax Information Network is based on unique numbers TAN and PAN as links. Returns and tax payments in the banks are linked up by using TAN and PAN. Non quoting/Wrong quoting of PAN of deductee in TDS quarterly returns/statements would result in deductee not getting the credit of tax deducted. Each branch/division of an entity will have a separate TAN though the PAN will be same for the entity. For e.g. SBI will have only one PAN but will have separate TAN for each branch. Each branch/division is required to files separate quarterly TDS/TCS return/statement.

TAN :
- Every deductor is required to obtain a unique identification number called TAN (Tax Deduction & Collection Account Number) which is a ten digit alpha numeric number

PAN :
- Permanent account number is the identification number for a tax payer for his assessment purpose

Deductor :
- The person who is responsible for deduction of tax on particular types of payments being made by them

Deductee :
- The person whose tax is liable to be deducted on particular types of payments

Financial Year :
- The Financial year is the year in which the actual transaction takes place i.e. the year in which the tax is to be deducted on particular payments which starts from 1st of April & ends on 31st March e.g. Period from 01.04.2011 to 31.03.2012 is known as F.Y. 2011-12

Assessment Year :
- The year commences from 1st April subsequent to financial year under consideration. Financial year 2011-12 illustrated above would be A.Y. 2012-13

TIN :
- Tax Information Network. It comprises of a network system managed & operated by National Securities Depository Limited (NSDL). It receives TDS returns/statements in electronic format through the facilitation centers set up by it on behalf of the Income tax Department.

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