A housing society is required to comply with various tax and statutory obligations in India. Obtaining PAN and TAN for a housing society is essential for lawful financial operations, tax filing, and compliance with income tax rules.
This Saving Mantra guide explains what housing society PAN and TAN are, their benefits, and the step-by-step process to obtain them in India.
What is PAN for a Housing Society?
PAN (Permanent Account Number) is a unique 10-digit alphanumeric number issued by the Income Tax Department. For a housing society, PAN is mandatory to:
- Open a bank account
- File income tax returns
- Receive interest income
- Conduct high-value financial transactions
What is TAN for a Housing Society?
TAN (Tax Deduction and Collection Account Number) is required when a housing society is liable to deduct or collect tax at source (TDS/TCS) on payments such as:
- Salaries to employees
- Payments to contractors
- Professional fees
- Security and housekeeping services
Why Housing Societies Need PAN and TAN
PAN and TAN are essential because they:
- Ensure compliance with Income Tax Act
- Enable lawful deduction and payment of TDS
- Prevent penalties for non-compliance
- Allow smooth banking and audit processes
Benefits of Housing Society PAN & TAN
Obtaining PAN and TAN provides several benefits:
- Legal identity under income tax laws
- Ability to file income tax returns
- Compliance with TDS provisions
- Avoidance of penalties and notices
- Transparency in financial transactions
- Eligibility for claiming exemptions
Documents Required for Housing Society PAN & TAN
Common documents include:
- Registration certificate of society
- Bye-laws of the society
- Address proof of society
- Identity and address proof of authorized signatory
- Resolution authorizing PAN/TAN application
Step-by-Step Process to Apply for Housing Society PAN
Step 1: Prepare Documents
- Collect society registration documents
- Pass resolution authorizing application
Step 2: Online Application
- Apply through NSDL/UTIITSL portal
- Select “Association of Persons (AOP)”
Step 3: Verification
- Verify details using DSC or OTP
Step 4: PAN Allotment
- PAN issued by Income Tax Department
- Physical PAN card dispatched
Step-by-Step Process to Apply for Housing Society TAN
Step 1: Online Application
- Apply through NSDL portal
- Fill Form 49B
Step 2: Document Submission
- Submit supporting documents
Step 3: TAN Allotment
- TAN issued by Income Tax Department
Post PAN/TAN Compliance for Housing Societies
After obtaining PAN and TAN, societies must:
- File income tax returns annually
- Deduct and deposit TDS on applicable payments
- File TDS returns quarterly
- Issue TDS certificates to vendors/employees
How Saving Mantra Helps Housing Societies
Saving Mantra offers complete support, including:
- PAN and TAN application
- Documentation and resolution drafting
- TDS compliance and return filing
- Income tax advisory
- Ongoing society compliance support
We ensure stress-free tax compliance for housing societies.
Conclusion
Housing society PAN and TAN are mandatory for lawful financial and tax compliance in India. Understanding their benefits and following the correct application process ensures transparency and avoids penalties. With expert guidance from Saving Mantra, PAN and TAN registration becomes simple and reliable.
Disclaimer
This blog is for informational purposes only and does not constitute tax or legal advice. PAN and TAN requirements may vary based on specific society activities and applicable laws. Readers are advised to consult qualified professionals before proceeding.