TDS and TCS compliance requires TAN, PAN, timely tax deposits, prescribed reporting, and higher rates for missing PAN.

Section 397 consolidates TDS and TCS compliance through TAN and PAN requirements, tax deposit obligations, prescribed statements and reporting. Failure to furnish PAN triggers higher TDS or TCS rates, invalidates specified declarations and restricts access to lower or nil deduction or collection certificates, subject to stated exceptions and the rent-specific cap. Deductors, collectors and specified employers must deposit tax and furnish required statements, while Government offices have separate reporting and identification obligations. Correction statements may be filed within two years, and collectors remain liable to deposit tax even if it is not collected.

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