Rule 216 of Income explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 216 of the Income-tax Rules, 2026 prescribes the application for a tax deduction and collection account number under section 397(1)(a) — Form No. 134 for a Government entity and Form No. 135 for any other person. It must be made before the first deduction or collection, or within thirty days from the end of the month in which tax was deducted or collected.
One form becomes two
Under rule 114A of the 1962 Rules, every applicant used Form 49B. Rule 216 splits the application by applicant class:
| Applicant | Form |
|---|---|
| Government entity | Form No. 134 |
| A person other than a Government entity | Form No. 135 |
The split matters because the definition of "Government entity" in sub-rule (6) is narrower than most people assume — see below.
The common application form — sub-rule (2)
An application for allotment of a TAN may also be made through a common application form as notified by the Central Government, by such persons as mentioned in the said notification.
This is the route that lets a single incorporation or registration filing generate a TAN alongside other registrations, rather than requiring a separate application. It is permissive and notification-driven: the class of persons who may use it is whatever the notification says, so it must be checked rather than assumed.
Where the application goes — sub-rule (3)
The application under sub-rule (1) or (2) is made to the officer to whom the function of allotment of a tax deduction and collection account number under section 397(1)(a) has been assigned by the Director General of Income-tax (Systems).
The rule does not name a jurisdictional officer. Jurisdiction here follows a systems assignment, which is consistent with the rest of the 2026 Rules' treatment of allotment and processing functions.
The timing rule — sub-rule (4)
The application shall be made:
- (a) prior to the deduction or collection of tax; and
- (b) where it has not been so made, within thirty days from the end of the month in which the tax was deducted or collected, as the case may be.
The primary obligation in clause (a) is to apply before the first deduction. Clause (b) opens only "where it has not been so made" — it is the remedial window for someone who has already deducted without a TAN. Planning to use the thirty-day window from the outset means the entity is in default of clause (a) from the first deduction, even if it later applies inside the window.
The thirty days run from the end of the month of deduction or collection, not from the date of deduction. Tax deducted on 3 July 2026 gives a deadline of 30 August 2026.
Documents — sub-rule (5)
The application under sub-rule (1) shall be accompanied by the documents mentioned in column D of the Table under sub-rule (8) of rule 158, as proof of identity, address and date of birth or date of incorporation, in respect of an applicant mentioned in column B of that Table.
Rule 158 is the PAN application rule. Rule 216 borrows its documentary annexure wholesale rather than repeating it, so the same proof set serves both applications. Practically, an entity applying for PAN and TAN at the same time assembles one document pack.
"Government entity" — sub-rule (6)
For the purposes of rule 216, "Government entity" means:
- (a) an entity of the Central Government;
- (b) an entity of the State Government;
- (c) any local authority (Central Government); or
- (d) any local authority (State Government),
but shall not include any company or any statutory or autonomous body constituted by any Act of the Central Government or State Government.
The exclusion is broad. A public sector undertaking, a statutory board, a regulator constituted by an Act, a State-owned corporation and a university created by statute all fall outside the definition, however clearly "governmental" they feel. They apply in Form No. 135, not Form No. 134. Getting this wrong at the application stage means the form is filed in the wrong class from day one.
Worked example
A newly incorporated private company appoints staff in June 2026 and will deduct tax on salaries for the first time when June salary is paid on 30 June 2026.
- It is not a Government entity, so its form is Form No. 135.
- Clause (a) requires the application before the 30 June deduction.
- Had it deducted on 30 June without applying, clause (b) would give it until 30 July 2026 — thirty days from the end of June — to cure the omission.
- It annexes the identity, address and date-of-incorporation proofs listed in column D of the rule 158(8) Table for its applicant class.
Compliance checklist
- Decide the applicant class first — Form No. 134 only for a true Government entity as defined in sub-rule (6).
- Apply before the first deduction or collection, not after.
- Where a deduction has already happened, diarise thirty days from the end of that month.
- Assemble the rule 158(8) column D documents for the applicant's class.
- Check whether a notified common application form covers the applicant before filing separately.
- Retire Form 49B and rule 114A from onboarding checklists.
Common mistakes
- Filing Form No. 134 for a PSU, statutory board or statutory university. Sub-rule (6) excludes them.
- Treating the thirty-day window as the deadline. It is the cure for a breach of clause (a).
- Counting thirty days from the date of deduction rather than from the end of the month.
- Filing without the rule 158(8) documents and waiting for a deficiency notice.
- Quoting Form 49B in engagement documentation for tax year 2026-27 onwards.