TAN (Tax Deducted at Source) Registration

TAN (Tax Deduction and Collection Account Number) is a 10-character alphanumeric number that every person who deducts or collects tax at source must obtain. It is quoted on all TDS/TCS challans, returns and certificates, and is separate from PAN.

Who needs this: Any employer, business or individual/HUF liable to deduct TDS (e.g., on salary, rent above ₹50,000/month, contractor payments, professional fees) must obtain a TAN before deducting.

Government portal: Protean (NSDL) TIN portal (tin-nsdl.com) — Form 49B, or the Income Tax e-filing portal.

Indicative fees: ₹65 government fee + ₹500–₹1,500 professional fees.

Timeline: 5–10 working days.

Documents required

Applicant's PAN
Name and address of the deductor
Details of the person responsible for deducting tax
Proof of business (incorporation/GST)

Step-by-step process

Determine whether your payments attract TDS (salary, rent, contractor, professional, commission, etc.)
File Form 49B online on the Protean TIN portal or through the e-filing portal
Pay the processing fee
Submit the acknowledgement (signed) if applying offline, or e-sign online
Receive the TAN allotment letter, usually within a week
Quote the TAN on all TDS challans, returns and Form 16/16A
Deduct TDS at the correct rate and deposit by the 7th of the next month
File quarterly TDS returns using the TAN

Penalty for non-compliance

Failing to obtain or quote TAN attracts a flat ₹10,000 penalty under section 272BB.

Frequently asked questions

What is the difference between PAN and TAN?

PAN identifies a taxpayer; TAN identifies a tax deductor. If you deduct TDS you must quote TAN (not PAN) on challans and returns — using PAN instead attracts a ₹10,000 penalty.

Who needs a TAN?

Anyone required to deduct or collect tax at source — employers, businesses, and individuals/HUFs liable to audit who pay rent, contractor or professional fees above the TDS thresholds.

Is a separate TAN needed for each branch?

A business can apply for separate TANs for different branches/divisions if they deduct TDS independently, but a single TAN can also cover the whole entity.

What is the penalty for not having a TAN?

Deducting or collecting tax without a TAN, or failing to quote it, attracts a penalty of ₹10,000 under section 272BB.

Can TAN details be changed?

Yes, through the TAN change/correction form on the TIN portal if the deductor's name, address or responsible person changes.