{"id":39958,"date":"2025-06-23T11:10:57","date_gmt":"2025-06-23T05:40:57","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/learn\/?p=39958"},"modified":"2026-07-13T18:35:39","modified_gmt":"2026-07-13T13:05:39","slug":"turnover-limit-for-tan-registration-for-partnership-firm-in-india","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/turnover-limit-for-tan-registration-for-partnership-firm-in-india\/","title":{"rendered":"Turnover Limit for TAN Registration for Partnership Firm in India"},"content":{"rendered":"

A Tax Deduction and Collection Account Number (TAN) is required for any person or entity liable for deducting or collecting tax at source under the Income Tax Act. Partnership firms often ask: Is there a specific turnover limit for TAN registration, or does every firm need a TAN regardless of turnover?<\/p>\n

This blog clears the confusion by explaining when TAN is mandatory for partnership firms, whether turnover matters, and what the law says about TDS obligations.<\/p>\n

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Quick Summary<\/strong><\/p>\n

There is no turnover limit for TAN registration for a partnership firm. A TAN becomes mandatory whenever your firm is required to deduct or collect tax at source (TDS\/TCS), regardless of its annual turnover. If your business makes payments such as salaries, rent, contractor fees, or professional charges that attract TDS, you must obtain a TAN before deducting and depositing tax to avoid penalties and ensure smooth tax compliance.<\/p>\n

Need help with TAN registration or partnership firm compliance?<\/strong> Our tax professionals can assist you with partnership firm registration, TAN application, PAN registration, TDS compliance, GST registration, and ongoing tax filings so your business remains fully compliant from day one.<\/p>\n

Get Expert Support
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Introduction<\/h2>\n

When a partnership firm starts operations and begins making payments like salaries, rent, contract fees, or professional charges, it has to comply with various tax rules. One key requirement is obtaining a TAN, which is a 10-digit alphanumeric number that is issued by the Income Tax Department for TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) compliance.<\/p>\n

Many small or new firms assume that TAN is only required once their turnover crosses a certain threshold.<\/p>\n

What is TAN?<\/h2>\n

TAN (Tax Deduction and Collection Account Number) is a unique number that identifies entities responsible for deducting or collecting taxes at source. The law requires that any person or business making specified payments where tax is deductible at source must first obtain a TAN and quote it in –<\/p>\n