TAN Registration —
Apply Online with Form 49B
Who must obtain a TAN, how to apply online through Form 49B on the Protean (NSDL) or income-tax portal, the fee and processing time, the TAN structure, and the Section 272BB penalty for not having one.
A TAN (Tax Deduction and Collection Account Number) is a 10-character alphanumeric ID that every person who deducts TDS or collects TCS must obtain under Section 203A. Apply online through Form 49B on the Protean (formerly NSDL) TIN portal or the income-tax portal; the government fee is about Rs 65 + GST (~Rs 77) and the TAN is usually allotted in 7–10 working days. Without a valid TAN you cannot file TDS returns and face a Rs 10,000 penalty under Section 272BB.
A PAN identifies a taxpayer; a TAN identifies a deductor. TDS returns (24Q/26Q/27EQ) and TDS challans (Challan 281) require a TAN, not a PAN. The only exceptions where PAN is used instead of TAN are the one-off deductions under Sections 194-IA (property purchase, Form 26QB), 194-IB (rent by individuals/HUF) and 194M (contract/professional payments by individuals/HUF) — none of which need a TAN.
Who Needs a TAN?
Anyone responsible for deducting TDS or collecting TCS must hold a TAN. The table maps the common situations, including where TDS can be paid on PAN alone.
| Deductor / situation | TAN? | Basis |
|---|---|---|
| Company paying salary, rent or professional fees | Yes | TDS u/s 192, 194-I, 194J |
| Firm / LLP with TDS obligations | Yes | TDS on contractor / professional / salary payments |
| Individual/business under tax audit deducting TDS | Yes | Audit case → regular TDS deductor |
| Individual buying property over Rs 50 lakh | No | Sec 194-IA — PAN & Form 26QB (1%) |
| Individual/HUF (no audit) paying rent over Rs 50,000/mo | No | Sec 194-IB — PAN, 2% once a year |
| Government deductor (ministry / PSU) | Yes | Files 24G; BIN for book-entry TDS |
Sec 194-IB rate was cut from 5% to 2% and the Sec 194-I annual rent threshold raised to Rs 6 lakh (Rs 50,000/month) — both from 1 April 2025 (Budget 2025).
How to Apply for TAN Online (Form 49B)
A fresh TAN is applied for in Form 49B, online on the Protean (NSDL) TIN website or via the income-tax portal. The flow below takes 10-15 minutes; allotment follows in about a week.
After payment you receive a 14-digit acknowledgement number to track the request. The TAN is emailed and posted to the registered address, usually within 7–10 working days, after which it can be used on TDS challans and returns.
Documents typically required
| Deductor type | Documents |
|---|---|
| Individual / proprietor | PAN, identity & address proof |
| Company | Certificate of Incorporation, company PAN, registered-office address proof |
| Firm / LLP | Partnership deed / LLP agreement, PAN, address proof |
| Trust / AOP / BOI | Trust deed / constitution document, PAN |
| Government | Responsible officer ID, office address proof |
Requirements vary by portal and category; keep PAN of the entity handy as it is mandatory in Form 49B.
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Get TAN & TDS Help →TAN Structure — How to Read a TAN
A TAN looks like MUMB12345C — four letters, five digits and a check letter. Each part is meaningful:
| Position | Characters | Meaning |
|---|---|---|
| 1–3 | Letters (MUM) | City / jurisdiction code of the TDS office |
| 4 | Letter (B) | First letter of the deductor's name |
| 5–9 | Digits (12345) | System-generated sequential number |
| 10 | Letter (C) | Alphabetic check digit |
Once allotted, quote the TAN on every TDS challan (Challan 281), every TDS return and every TDS certificate such as Form 16 / 16A. You can verify a TAN under "Know Your TAN" on the income-tax portal.
You must get a TAN if
- You are a company, firm or LLP deducting any TDS
- You run a business under tax audit and deduct TDS
- You collect TCS on sale of goods, scrap, etc. u/s 206C
You can skip TAN (use PAN) if
- You are an individual buying property (194-IA, Form 26QB)
- You are a non-audit individual/HUF paying rent (194-IB)
- You make one-off contract/professional payments (194M)
Penalty for Not Obtaining a TAN
Failing to apply for a TAN, or quoting a wrong TAN on returns and challans, attracts a flat penalty under Section 272BB. The knock-on TDS consequences are usually costlier than the penalty itself.
- Rs 10,000 penalty under Section 272BB for not obtaining a TAN or quoting an incorrect one
- TDS returns (24Q, 26Q, 27EQ) cannot be filed without a valid TAN
- Deductees do not get their TDS credit in Form 26AS / AIS, because credit is matched on the deductor's TAN
- Being treated as an assessee-in-default u/s 201, with 1%/1.5% per month interest on the TDS involved
A deductor generally needs only one TAN, used across all TDS sections and returns. Multiple TANs for the same entity should be surrendered to avoid mismatch. Quote the same TAN on Challan 281, GSTR-independent TDS returns and every TDS certificate to keep Form 26AS credits flowing to your deductees.
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Talk to a TDS Expert →TAN Registration — Frequently Asked Questions
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