Why TAN required for NGO

Why TAN (Tax Deduction and Collection Account Number) required for NGO (Regd. Trust)

TAN is generally not required for NGOs unless they have specific tax deduction obligations. Here's a detailed explanation:

When is TAN Required for an NGO (Regd. Trust)?
TAN is only required if the NGO is liable to deduct TDS (Tax Deducted at Source) on certain payments. An NGO must obtain a TAN (Tax Deduction and Collection Account Number) if it:  

✔ Pays salaries to employees exceeding taxable limits and deducts TDS under Section 192
✔ Makes payments to contractors, professionals, or rent exceeding ₹30,000 per transaction or ₹1,00,000 per year where TDS applies under Sections 194C, 194J, 194I, etc.
✔ Pays interest (not from a bank) or professional fees where TDS deduction is mandatory

When is TAN NOT Required for Regd. Trust?
? If the NGO only receives donations and does not deduct TDS on payments, TAN is NOT required.  
? If the NGO is a purely charitable organization without tax-deductible expenses, TAN is NOT required.  

Notes:
Since Regd. Trust is receiving a ₹5 crore donation and not deducting TDS, TAN is NOT mandatory unless the NGO has TDS obligations on payments (e.g., salaries, professional fees, rent, etc.). PAN is sufficient for tax filings and donations.

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