To update the Organization’s tax details, navigate to Settings> Payroll settings> General settings > Organization bank & tax details.
A Permanent Account Number (PAN) is a 10-digit alphanumeric identifier, and it is provided by the Income Tax department. All Indian organization that generates income (i.e., Every taxpayer) is required to have PAN because it will be mentioned in all financial transactions. Here PAN number refers to the Organization’s PAN.
In the above example, the first three are running alphabet from AAA to ZZZ, the fourth character represents the status of the pan holder (i.e., ‘”C” for Company, ‘”P” for Personal, etc..), the fifth character of PAN is either the first letter of the PAN holder’s first name or last /surname. It differs based on the status. The next four digits are running numbers from 0001 to 9999 and the last digit is an alphabetic check digit.
Tax Deduction or Tax Collection Account Number (TAN) is a 10-digit alphanumeric identifier, issued by Income Tax Department to deduct or collect tax. TAN is mandatory for those who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS). Here TAN number refers to the Organization’s TAN.
In the above example, the first three alphabets refer to the city (CHE stands for Chennai) from where the TAN was obtained, the fourth character of the TAN is the first letter of the company name, the next five are running numbers from 0001 to 9999 and the last digit is an alphabetic check digit.
TDS Circle / AO code: #
Tax Deducted at Source circle refers to the city of TAN obtained, and the AO code (Assessing Office Code) is a combined code of area code, AO Type, range code, and AO Number. The details can be found on the company’s Income tax site page under My profile in jurisdiction details.
Deductor’s Name: #
Deductor is the employee who is registered at the Income Tax site and responsible for deducting tax at the organization level. Person can be either an Accounts Manager or an employed director. The drag-down option helps to choose the Deductor name from one of the employees.
Deductor’s father’s name: #
The father’s name of the deductor which you mentioned in the previous field should be typed here.