TDS remittance by Government Department

[Guest]

How do Government departments remit the taxes  deducted at source... Is there any special procedure involved...

[CA Rachit Agarwal]

Though Govt. Departments do not have PAN as govt. departments are not classified as persons. However they have the TAN for the purpose of remitting the tax deducted at source.

AI Summary

TAN requirement ensures government departments remit TDS despite not having PAN, enabling proper tax deposit compliance. Government departments remit taxes deducted at source using a TAN because they are not treated as persons for PAN registration; all TDS deposits and related reporting that would otherwise use PAN are effected through the department's TAN to ensure withholding tax compliance.