How to Apply for TAN Number

A Tax Deduction and Collection Account Number (TAN) is a unique 10-digit alphanumeric identifier issued by the Income Tax Department of India to entities responsible for deducting or collecting tax at source (TDS/TCS). Whether you are an employer, a bank, a financial institution, or a business making payments subject to TDS, obtaining a TAN is not just a regulatory requirement—it is a legal obligation under Section 203A of the Income Tax Act, 1961. Failure to apply for or quote a TAN in prescribed documents can lead to penalties of up to ₹10,000. This guide provides a comprehensive, step-by-step walkthrough on how to apply for a TAN number, including best practices, essential tools, real-world examples, and answers to frequently asked questions.

Step-by-Step Guide

Applying for a TAN number is a streamlined, online process managed by the National Securities Depository Limited (NSDL) on behalf of the Income Tax Department. The entire application is paperless and can be completed in under 30 minutes if all documents are prepared in advance. Below is a detailed breakdown of each step involved.

Step 1: Determine Eligibility

Before initiating the application, confirm whether your entity is required to obtain a TAN. You must apply if you are obligated to deduct tax at source (TDS) on payments such as salaries, interest, rent, professional fees, commissions, or if you are required to collect tax at source (TCS) on specific goods like alcohol, timber, or scrap. This applies to individuals, Hindu Undivided Families (HUFs), companies, partnerships, trusts, and government bodies. Sole proprietors operating under their personal name are also required to apply if they make TDS payments.

Entities that only receive TDS (and do not deduct it) are not required to obtain a TAN. For example, if you are an employee receiving salary with TDS deducted by your employer, you do not need a TAN.

Step 2: Gather Required Information

Prepare the following details before starting the application:

• Name of the deductor/collector – As per official records (e.g., company name, individual’s full name)
• Address – Complete correspondence address including pin code
• State and district – Where the entity is registered or operates
• Telephone number and email address – Must be active and accessible
• Category of deductor – Choose from options like Company, Firm, Individual, Trust, Government, etc.
• Reason for obtaining TAN – Select whether for TDS, TCS, or both
• Details of the authorized person – Name, designation, PAN of the person applying on behalf of the entity

For corporate entities, ensure the company’s PAN is available. For individuals, the applicant’s personal PAN is mandatory. The TAN application is linked to PAN, and the system will validate this automatically.

Step 3: Access the Official TAN Application Portal

Visit the official NSDL-TAN application website: https://tin.tin.nsdl.com/tan/index.html. This is the only authorized platform for submitting TAN applications. Avoid third-party websites that may charge unnecessary fees or collect personal data.

On the homepage, click on the “Apply for New TAN” option under the “TAN” section. This will redirect you to the online form.

Step 4: Fill Out Form 49B

The application form is officially known as Form 49B. It is divided into several sections:

1. Part A – Applicant Details: Enter the name, address, and contact information of the deductor. Select the appropriate category (e.g., Company, Partnership, Individual). Provide the state and jurisdiction under which the entity falls.
2. Part B – Reason for Applying: Choose whether you need TAN for TDS, TCS, or both. If you are unsure, select “Both” to cover all future obligations.
3. Part C – Authorized Person: Provide the name, designation, PAN, mobile number, and email of the person authorized to submit the application. This person must be legally empowered to act on behalf of the entity (e.g., Director, Partner, Proprietor, or Company Secretary).
4. Part D – Declaration: Read the declaration carefully. Tick the box to confirm that all information provided is true and correct. Sign digitally using an e-Sign or Aadhaar-based authentication.

Ensure that the name entered in Part A exactly matches the legal name on the entity’s PAN card or registration certificate. Any mismatch may result in rejection or delays.

Step 5: Submit and Pay the Application Fee

After completing all fields, review the form thoroughly. Once confirmed, proceed to payment. The application fee is ₹65 (inclusive of GST) for Indian applicants. Payment can be made via:

• Debit or Credit Card
• Net Banking
• UPI

After successful payment, a unique acknowledgment number will be generated. Save this number—it will be required to track the status of your application.

Step 6: Receive TAN via Email and SMS

Once your application is processed (typically within 7–10 working days), the TAN will be issued electronically. You will receive an email and SMS notification containing your 10-digit TAN number. The official TAN allotment letter (Form 49B) will also be available for download on the NSDL portal using your acknowledgment number.

The TAN format follows the pattern: AAAA12345A. The first four characters are alphabetic, the next five are numeric, and the last character is alphabetic. For example: ABCD12345E.

Step 7: Update Records and Begin Compliance

Upon receipt of your TAN, take the following actions:

• Update your accounting and payroll software with the new TAN.
• Print and keep a physical copy of the TAN allotment letter for audit purposes.
• Ensure your TAN is quoted on all TDS/TCS returns, challans, and certificates issued to deductees.
• Inform your vendors, clients, and employees (if applicable) of your new TAN for their records.

Failure to quote the TAN on TDS returns or challans will result in non-acceptance of those filings by the Income Tax Department, leading to potential notices and compliance issues.

Best Practices

Applying for a TAN is straightforward, but many applicants encounter avoidable delays or rejections due to common oversights. Follow these best practices to ensure a smooth and error-free process.

Use Accurate and Consistent Information

Every field in Form 49B must reflect data that matches official records. If your company is registered as “ABC Enterprises Private Limited,” do not abbreviate it as “ABC Pvt Ltd.” Similarly, ensure the address matches the one registered with the Ministry of Corporate Affairs (MCA) or the Registrar of Firms. Inconsistencies trigger manual verification, which can delay processing by weeks.

Verify PAN Before Applying

Since TAN is linked to PAN, any discrepancy between the PAN and applicant name will cause automatic rejection. Use the Income Tax Department’s e-Filing portal to verify your PAN details before starting the TAN application. If your PAN is invalid or inactive, resolve it first through the NSDL PAN correction portal.

Use a Dedicated Email and Mobile Number

Do not use personal or temporary email addresses. Use an official corporate email (e.g., finance@company.com) and a mobile number that is regularly monitored. The TAN allotment notice and future communications from the Income Tax Department will be sent to this channel.

Apply Well in Advance

Do not wait until the last minute to apply for a TAN. If you are starting a new business or hiring employees, apply for TAN at least 15–20 days before your first payroll or payment subject to TDS. Delays in TAN issuance can result in non-compliance during the first deduction cycle, which may trigger notices.

Retain Proof of Submission

Always download and save the PDF of your submitted Form 49B and the payment receipt. These documents serve as proof of application in case of disputes or if the TAN is not received within the stipulated time.

Update TAN Details if Information Changes

If your business address, name, or authorized signatory changes, you must apply for a TAN modification using Form 49B. Failure to update can lead to mismatches in TDS returns and future compliance issues. The modification process is similar to the initial application and requires re-verification of documents.

Never Share Your TAN Publicly

Unlike PAN, TAN is not meant for public disclosure. While it must be included in official documents like TDS certificates and returns, avoid publishing it on websites, invoices, or marketing materials. Unauthorized use of TAN can lead to misuse or fraudulent filings.

Regularly Monitor TDS Compliance

Once you have your TAN, ensure timely filing of TDS returns (Form 24Q, 26Q, 27Q, 27EQ) and payment of deducted tax by the due dates. Use the TAN to track all your TDS obligations through the TRACES portal (TDS Reconciliation Analysis and Correction Enablers System). This helps avoid interest, penalties, and notices.

Tools and Resources

Several digital tools and government resources are available to simplify the TAN application process and ensure ongoing compliance. Leveraging these can save time, reduce errors, and improve accuracy.

NSDL TAN Portal

The primary platform for applying for a TAN is the NSDL TAN portal: https://tin.tin.nsdl.com/tan/index.html. It offers a secure, government-endorsed interface for new applications, status tracking, and downloading the TAN allotment letter. Always use this official site to avoid phishing or fraudulent portals.

Income Tax e-Filing Portal

Visit https://www.incometax.gov.in to verify your PAN, check your TDS credit, and access your Form 26AS (Annual Tax Statement). This portal also allows you to download your TAN details and link them to your PAN for unified tax compliance.

TRACES Portal

The TRACES portal (https://traces.gov.in) is essential for TDS compliance. After obtaining your TAN, register on TRACES to file TDS returns, generate TDS certificates (Form 16/16A), and reconcile discrepancies. TRACES allows you to track the status of your filings and respond to notices issued by the department.

GSTN Portal (For TCS Applicability)

If your business is registered under GST and collects tax at source (TCS) on e-commerce sales, your TAN must be linked with your GSTIN. Use the GSTN portal (https://www.gst.gov.in) to verify the integration between your TAN and GSTIN. Mismatches here can cause TCS collection failures.

Mobile Apps for Compliance

Several third-party accounting and payroll platforms integrate TAN management into their systems. Tools like Zoho Payroll, TallyPrime, and QuickBooks allow you to input your TAN and automatically generate compliant TDS returns. These platforms often include alerts for due dates and error checks before submission.

PDF Editors for Form 49B Review

Before submitting Form 49B, use a reliable PDF editor (such as Adobe Acrobat Reader or Foxit PDF) to review your filled form. Ensure all fields are legible, no fields are left blank, and the digital signature (if used) is properly applied. Some applicants lose their application due to corrupted or incomplete PDF uploads.

Government Helpline for Document Verification

While direct helplines are not to be mentioned, official resources such as the Income Tax Department’s FAQ section and NSDL’s downloadable user manuals provide detailed guidance on filling out Form 49B. These are available in multiple Indian languages and can be accessed from the official websites.

Accounting Software Integration

Modern accounting software like SAP, Oracle Financials, and Microsoft Dynamics allow TAN integration for automated TDS calculations. If your business uses enterprise-level software, consult your IT or finance team to ensure TAN is correctly configured in the tax module.

Real Examples

Understanding how TAN applies in real-world scenarios helps clarify its necessity and usage. Below are three practical examples across different business types.

Example 1: Small IT Consulting Firm

Mr. Arjun runs a small IT consulting firm registered as a private limited company. He hires two freelancers who each earn ₹60,000 per month. Under Section 194J, he is required to deduct 10% TDS on their payments. Before making the first payment, he applies for a TAN.

He visits the NSDL portal, fills Form 49B with his company’s name, registered office address, and his own PAN as the authorized person. He selects “TDS” as the reason. After paying ₹65, he receives his TAN—ABCD12345E—within 8 days.

He updates his payroll system, includes the TAN on all payment vouchers, and files quarterly TDS returns using the TAN. Without the TAN, his returns would have been rejected, and he would have faced a penalty.

Example 2: Real Estate Developer Paying Rent

A real estate company in Pune leases office space for ₹80,000 per month from a property owner. Under Section 194I, if rent exceeds ₹2,40,000 annually, TDS at 10% is mandatory. The company applies for a TAN using its registered name and PAN.

During the application, the company mistakenly entered the address of a branch office instead of the registered office. The application was rejected due to address mismatch. They corrected the error, resubmitted, and received the TAN after 12 days. They then issued Form 16A to the landlord, quoting the correct TAN.

This example highlights the importance of using only registered details. Even minor errors can cause delays.

Example 3: E-commerce Seller Collecting TCS

A small seller on Amazon India sells handmade crafts worth ₹12 lakh annually. Under Section 52, Amazon, as an e-commerce operator, collects 1% TCS on payments made to sellers. The seller receives a TCS certificate from Amazon, which includes Amazon’s TAN.

The seller, however, is also required to collect TCS on sales exceeding ₹50 lakh if they operate through their own website. To comply, the seller applies for a TAN as a TCS collector. They select “TCS” as the reason and provide their individual PAN as the proprietor.

After receiving TAN—PQRS67890F—they integrate it into their website’s payment gateway and begin issuing TCS certificates to buyers. Their compliance status is now fully aligned with the Income Tax Act.

Example 4: Educational Trust Paying Honorarium

A non-profit educational trust pays ₹15,000 per month to guest lecturers. Since the annual payment exceeds ₹30,000, TDS under Section 194J applies. The trust, being a registered entity under the Societies Registration Act, applies for a TAN using its trust name and registered address.

The authorized person is the Secretary of the trust, who provides their PAN. The trust selects “TDS” and submits the form. Upon receiving the TAN, they begin deducting TDS and issue Form 16A to each lecturer. This ensures the trust remains compliant and avoids penalties during audits.

FAQs

Is it mandatory to apply for a TAN if I deduct TDS?

Yes. Section 203A of the Income Tax Act mandates that any person responsible for deducting TDS must obtain a TAN and quote it in all TDS-related documents, including challans, returns, and certificates. Failure to do so attracts a penalty of ₹10,000.

Can I use my PAN instead of a TAN?

No. PAN and TAN serve different purposes. PAN identifies taxpayers, while TAN identifies entities responsible for tax deduction or collection. You cannot substitute one for the other.

How long does it take to get a TAN after applying?

Typically, it takes 7 to 10 working days from the date of successful submission and payment. In rare cases, if there are discrepancies or manual verification is required, it may take up to 15–20 days.

Can I apply for a TAN if I don’t have a PAN?

No. A PAN is mandatory for TAN application. The system automatically validates the applicant’s PAN during submission. If you don’t have a PAN, apply for one first through the NSDL or UTIITSL portal.

What should I do if I lose my TAN number?

If you have lost your TAN, you can retrieve it using your acknowledgment number on the NSDL portal. Alternatively, check your email or SMS history for the allotment message. If neither is available, you can request a duplicate TAN allotment letter using Form 49B.

Can a single TAN be used for multiple branches or offices?

Yes. A single TAN is assigned to the entity, not the location. If your company has multiple branches, you can use the same TAN for all TDS deductions across locations. However, ensure that the deductor name and address in the return match the registered details.

What happens if I quote the wrong TAN in a TDS return?

Quoting an incorrect TAN will result in the return being rejected by the Income Tax Department. You will receive a notice requiring correction. To fix this, you must file a revised return with the correct TAN. Repeated errors may trigger scrutiny.

Can I apply for TAN as an individual?

Yes. Individuals who are required to deduct TDS—for example, a proprietor paying professional fees to consultants—can apply for a TAN in their individual name using their PAN.

Is there a renewal process for TAN?

No. TAN is a permanent number and does not expire. Once allotted, it remains valid for the lifetime of the entity. However, if the entity dissolves, the TAN should be deactivated by submitting a request to the Income Tax Department.

Can I apply for TAN for someone else?

You can apply on behalf of an entity if you are an authorized representative (e.g., Company Secretary, Partner, Director). You must provide your own PAN and designation. You cannot apply for a TAN for another individual’s personal TDS obligations.

Conclusion

Applying for a TAN number is a critical compliance step for any entity involved in tax deduction or collection in India. It is not merely a bureaucratic formality—it is a legal requirement that ensures transparency, accountability, and timely remittance of taxes to the government. The process, though simple, demands attention to detail. Incorrect information, delays in application, or failure to quote the TAN can lead to financial penalties and operational disruptions.

By following the step-by-step guide outlined in this tutorial, adhering to best practices, utilizing the recommended tools, and learning from real-world examples, you can secure your TAN efficiently and maintain full compliance with tax regulations. Remember, the key to seamless TAN management lies in accuracy, timeliness, and consistency.

Do not wait for a notice to act. Proactively apply for your TAN as soon as you determine your obligation. Once obtained, integrate it into your financial systems, train your team on its usage, and monitor your TDS/TCS filings regularly. A well-managed TAN is not just a compliance asset—it is a foundation for credible, trustworthy business operations in India’s evolving tax ecosystem.