TAN Registration Online in India
TAN - Tax Deduction and Collection Account Number - is the 10-character identifier every person or entity that deducts or collects tax at source must have. Without it, your TDS challans are not recognised, your deductees cannot claim credit, and you face a ₹10,000 penalty. This guide explains who needs TAN, how to apply, and what the consequences of non-compliance are.
What Is TAN?
TAN stands for Tax Deduction and Collection Account Number. It is a 10-character alphanumeric code issued by the Income Tax Department under Section 203A of the Income Tax Act, 1961. It is mandatory for any person or entity that is required to deduct tax at source (TDS) or collect tax at source (TCS) under the Act.
An example TAN looks like this: MUMA12345E
| Segment | Characters | Example | Meaning |
|---|---|---|---|
| City code | 3 | MUM | City of the TAN applicant (MUM = Mumbai) |
| Issuing office / type | 1 | A | Identifies the issuing office category |
| Sequence number | 5 | 12345 | Unique numeric identifier assigned by the department |
| Check letter | 1 | E | Verification character |
Who Needs a TAN?
Must have TAN
- All companies (private limited, public limited, OPC) making any payment subject to TDS.
- LLPs and partnership firms paying salaries, rent above ₹2.4 lakh per year, contractor payments, or professional fees.
- Individuals and HUFs in business or profession paying contractors, rent, or professional fees above TDS threshold limits.
- Any person required to collect TCS (e.g. dealers of specified goods, e-commerce operators).
- Employers of any size that pay salary - TDS on salary is mandatory regardless of headcount.
Does not need TAN
- Individuals and HUFs not carrying on any business or profession (salaried individuals, retired persons).
- Any person making payments that fall below the applicable TDS threshold for that category.
When in doubt, apply for a TAN. There is no harm in holding a TAN if you later determine it is not required - but deducting TDS without a TAN is an offence.
How to Apply for TAN
TAN applications are filed using Form 49B. There are two channels:
- Online via NSDL: Visit tin-nsdl.com → Apply Online → New TAN. Fill and submit Form 49B digitally. Pay the fee online. If applying with a Digital Signature Certificate (DSC), the process is entirely online. Without DSC, print the acknowledgement, sign, and send the physical copy to the NSDL processing centre.
- Online via UTIITSL: Visit utitsl.co.in → TAN Services → Apply for New TAN. The process is similar to NSDL.
₹77
Application fee
₹65 + 18% GST
7–10
Working days
Typical processing time
1 only
TAN per entity
Multiple TANs are an offence
Documents and Information Required
- ✓PAN of the applicant (individual, company, LLP, or other entity)
- ✓Full name and address of the applicant
- ✓Category of deductor (company, branch of company, individual, government, etc.)
- ✓Details of the responsible officer - name, designation, address, telephone number
- ✓Aadhaar number (for individual applicants)
- ✓Certificate of Incorporation or partnership deed (for non-individual entities)
Consequences of Non-Compliance
| Violation | Consequence |
|---|---|
| Depositing TDS without quoting a TAN | Challan is not recognised; TDS credit is not available to the deductee |
| Failing to apply for or obtain TAN | ₹10,000 penalty under Section 272BB of the Income Tax Act |
| Quoting an incorrect TAN on challans or returns | ₹10,000 penalty under Section 272BB |
| Obtaining more than one TAN | Offence under Section 272BB; the duplicate TAN must be surrendered |
| Non-filing of TDS return (Form 24Q, 26Q, 27Q) | Late fee of ₹200 per day under Section 234E, plus penalty of ₹10,000–₹1,00,000 under Section 271H |
Frequently Asked Questions
QCan I use my PAN instead of TAN for TDS?
No. PAN and TAN are separate numbers with different purposes. PAN identifies a taxpayer; TAN identifies a deductor. Quoting PAN where TAN is required is treated as non-quoting of TAN and attracts a ₹10,000 penalty.
QI already have a TAN from a previous business. Can I reuse it?
No. TAN is issued to a specific entity. If you are operating a new entity (new company, new proprietorship), you need a fresh TAN for that entity. The old TAN belongs to the old entity.
QHow do I find my existing TAN if I have lost it?
Visit tin.tin.nsdl.com → Know Your TAN. Enter your PAN and entity category to retrieve the TAN linked to your PAN.
QIs TAN required for one-time TDS deductions (e.g. property purchase)?
If you are an individual buying property above ₹50 lakh, you deduct TDS at 1% and report it in Form 26QB. This is a special category where TAN is not required - your PAN is used instead.
QHow do I surrender a duplicate TAN?
Write to the Assessing Officer (TDS) with both TAN numbers, explaining which one to retain. Alternatively, fill Form 49B selecting "Changes or Correction" and mention the TAN to be surrendered.
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