What is TAN (Tax Deduction Account Number)? Meaning, Uses and How to Apply

TAN is a 10-character alphanumeric number issued by the Income-tax Department to anyone who deducts or collects tax at source. It has four letters, five digits and one letter, and it must appear on TDS and TCS returns, challans and certificates. It is different from PAN.

Why TAN matters for businesses

If your company pays salaries, rent, professional fees or contractor bills above the TDS thresholds, you deduct tax and deposit it with the government. TAN is how the department links that deposit to you. A new company usually gets it during incorporation, and if you missed it, you can apply separately through TAN registration.

Where and when TAN is required

• Filing quarterly TDS or TCS returns
• Paying TDS through challans
• Issuing TDS certificates such as Form 16 or 16A to employees and vendors
• Other documents the Income-tax rules prescribe

Some individuals who deduct tax on specific transactions, such as buying property, are exempt from having a TAN. Check the relevant section before assuming you need one.

How to get TAN

You apply using Form 49B, either online through the Protean (NSDL) TIN website or offline at a TIN facilitation centre. Companies incorporated through SPICe+ can have TAN allotted along with PAN; our SPICe+ guide explains how. After you have it, regular TDS filing keeps you on the right side of notices. If a return went in with wrong details, see TDS return correction.

Common mistakes

• Using the company PAN where TAN is asked. They are two different numbers.
• Quoting a wrong TAN on a return or challan. The Act provides a penalty of Rs. 10,000 for failing to obtain TAN or quoting an incorrect one.
• Applying for a fresh TAN when the business already has one, instead of correcting details on the old one.
• Not updating TAN details after a change of address or name.

Related guides: What is a PAN Card, What is CIN, MCA and ROC explained

FAQs

Is TAN the same as PAN?

No. PAN identifies a taxpayer for filing returns. TAN identifies the person who deducts or collects tax at source.

Which form is used to apply for TAN?

Form 49B, filed online or through a TIN facilitation centre.

Does a new company need TAN?

If it will deduct TDS, yes. Most companies pay salaries or fees, so they usually get one at the start.

Unsure whether TDS applies to you? Talk to a Taxhint expert before the first deduction is due.