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Glossary · TDS & TCS

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

PANTAN
IdentifiesA taxpayerA deductor or collector of tax
Used inReturns, all tax mattersTDS/TCS challans, returns, certificates
FormatABCDE1234FABCD12345E (first 3 letters: jurisdiction)

Applying for a TAN

  1. Fill Form 49B online on the Protean (NSDL) TIN portal
  2. Pay the processing fee and submit
  3. 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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