TAN Number — What It Is & How to Apply
Updated June 2026 · VerifiedWhat Is a TAN Number?
TAN stands for Tax Deduction and Collection Account Number. It is a unique 10-character alphanumeric identifier (e.g., DELM12345A) issued by the Income Tax Department to persons who are required to deduct or collect tax at source.
TAN is structured as: 4 letters + 5 digits + 1 letter. The first three letters represent the jurisdiction, the fourth is the first letter of the deductor's name, followed by a unique numeric sequence and a check letter.
Who Needs a TAN?
TAN is required by any person who is responsible for:
- Deducting TDS: Employers deducting TDS on salary (Section 392), businesses deducting TDS on rent, professional fees, contractor payments, etc. (Section 393).
- Collecting TCS: Sellers collecting tax at source on specified goods (Section 394, earlier 206C).
This includes companies, firms, trusts, government offices, individuals and HUFs liable to tax audit, and any other entity making payments subject to TDS.
How to Apply for TAN Online?
Follow these steps to apply for TAN through NSDL:
- Visit NSDL-TIN website: Go to
tin.tin.nsdl.comand select “TAN → Apply Online.” - Fill Form 49B: Enter details such as name, address, category of deductor, and PAN (if available).
- Submit and pay: Pay the processing fee of ₹77 (including GST) online via debit card, credit card, net banking, or demand draft.
- Acknowledgment: On successful submission, a 14-digit acknowledgment number is generated. Note it for tracking.
- Receive TAN: TAN is allotted within 7–10 working days and communicated via email/post.
What Documents Are Needed for TAN Application?
The TAN application (Form 49B) is a self-declaration form. No documents need to be attached. However, ensure you have the following details ready:
- Name and address of the deductor (individual, company, firm, etc.)
- Category of deductor (central government, state government, company, firm, individual, etc.)
- PAN of the deductor (if available)
- Contact details — phone number and email address
- Responsible person's name and designation
What Are the Penalties Related to TAN?
| Default | Penalty |
|---|---|
| Not applying for TAN | ₹10,000 |
| Not quoting TAN in challans, returns, certificates | ₹10,000 |
| Quoting incorrect TAN | ₹10,000 |
Frequently Asked Questions
Is TAN mandatory for all businesses?
TAN is mandatory only for persons who are required to deduct or collect tax at source. If a business does not make any payments subject to TDS/TCS, TAN is not required.
How long does it take to get a TAN?
TAN is typically allotted within 7 to 10 working days from the date of online application. The TAN number is sent to the registered email address and by post.
Can I apply for TAN correction or change of details?
Yes. You can apply for TAN correction (change of name, address, etc.) online on the NSDL-TIN website using the “Changes or Correction in TAN” form. A fee of ₹77 applies.
Is TAN required for individuals paying rent above ₹50,000/month?
No. Individuals and HUFs (not liable to audit) deducting TDS on rent under the erstwhile Section 194-IB can use their PAN instead of TAN. They file Form 26QC for such deductions.
Can I have more than one TAN?
No. A deductor should have only one TAN. Having multiple TANs is not permitted and can lead to penalties. If you have duplicate TANs, apply for cancellation of the extra TAN.