What is TDS Registration?

TDS (Tax Deducted at Source) registration is mandatory for any business, organization, or individual required to deduct tax while making payments such as salary, rent, professional fees, interest, or contractor payments. To deduct TDS legally, you must obtain a TAN (Tax Deduction and Collection Account Number) from the Income Tax Department. Without TAN, TDS cannot be deposited, and non-compliance may result in penalties and disallowance of expenses under the Income Tax Act.

Who Needs TDS Registration?

TDS registration is required under two frameworks:

• Income Tax Act: Any person or entity making specified payments subject to TDS, including individuals, HUFs, firms, companies, trusts, societies, and government bodies, must obtain TAN.

• GST (Section 51): Government departments, PSUs, local authorities, notified agencies, and societies must register as TDS deductors if making contractual payments exceeding ₹2.5 lakh for goods or services. Registration is mandatory even if already registered under GST for other purposes.

Benefits of TDS Registration

Registering for TDS offers several advantages:

• Legal Compliance: Ensures adherence to the Income Tax Act and avoids penalties.

• Streamlined Tax Collection: Taxes are deducted at the source, simplifying compliance for payers and recipients.

• Transparency & Accountability: Maintains proper documentation of financial transactions, reducing discrepancies.

• Ease of Filing & Deductions: Facilitates accurate filing of returns and claiming of eligible deductions through TDS certificates like Form 16.

• Prevents Tax Evasion: Deducting TDS ensures timely contribution to government revenue and discourages unreported income.

Documents Required for TDS Registration

Key documents include:

• PAN card of the entity or individual

• TAN application (Form 49B)

• Proof of business address (utility bill, rent agreement, or NOC)

• Certificate of incorporation, partnership deed, or MOA/AOA for companies

• List of directors/partners and their details

• Bank account information

• Digital signature certificate (mandatory for online verification)

• Mobile number and email of the authorized signatory

With AuditFiling

With AuditFiling, TDS registration is quick, transparent, and error-free. We assist in TAN application, documentation, and ensure full compliance under Income Tax and GST. Our experts also provide ongoing TDS support including monthly payments, return filing, and Form 16 issuance, so your business stays legally compliant while you focus on growth.