What is a TAN?
Reviewed by Ranga & Company
TAN: A TAN is a 10-character number every person who deducts or collects tax at source must hold and quote in TDS and TCS payments, returns and certificates.
At a glance
- Format
- 4 letters, 5 digits, 1 letter (e.g. ABCD12345E)
- Apply with
- Form 49B on the Protean (NSDL) portal
- Who needs it
- Employers and businesses deducting or collecting tax at source
- Not needed
- Property buyers (194-IA) and individuals paying rent under 194-IB; they use PAN
- Penalty
- ₹10,000 for not applying when required
PAN vs TAN
| PAN | TAN | |
|---|---|---|
| Identifies | A taxpayer | A deductor or collector of tax |
| Used in | Returns, all tax matters | TDS/TCS challans, returns, certificates |
| Format | ABCDE1234F | ABCD12345E (first 3 letters: jurisdiction) |
Applying for a TAN
- Fill Form 49B online on the Protean (NSDL) TIN portal
- Pay the processing fee and submit
- Receive the TAN by email; it is also visible on the TRACES portal once registered
Common mistakes
- Using PAN instead of TAN in TDS challans (only allowed for 194-IA, 194-IB and 194M)
- Applying for a second TAN instead of using the existing one
Frequently asked questions
What is the difference between PAN and TAN?
PAN identifies a taxpayer for all income tax purposes. TAN identifies a deductor or collector of tax at source and is used only for TDS and TCS.
Can I use PAN instead of TAN for TDS?
Only in specific cases such as buying property under section 194-IA or paying rent under section 194-IB. Otherwise, deductors must have a TAN.
How long does it take to get a TAN?
Usually a few working days after applying online with Form 49B.
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