TAN registration: how to get a Tax Deduction Account Number online
Anyone who deducts or collects tax at source needs a TAN, a 10-character number quoted on every TDS payment and return. Applying takes about fifteen minutes online and costs ₹77. Not having one when you should costs ₹10,000.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP · Published
Quick answer
A TAN is required by anyone who deducts or collects tax at source. Apply online in Form 49B on the Protean portal for ₹77 including GST. Deducting without a TAN attracts a ₹10,000 penalty. Individuals paying TDS on property, rent or large contracts can use PAN instead.
- Fee ₹77 including GST
- Now section 397 of the Income-tax Act, 2025
- From 1 October 2026, buyers of property from NRIs can use PAN
Official source: Income Tax Department: Tax deduction account number
Who needs a TAN
Every person required to deduct TDS or collect TCS must obtain a TAN. Under the Income-tax Act, 2025 the requirement is in section 397 (it was section 203A of the 1961 Act). In practice that covers:
- Companies and LLPs, from the first month they pay salary, rent, professional fees or contract payments above the TDS thresholds.
- Partnership firms, trusts, societies and other entities that pay salaries or contractors.
- Individuals and HUFs liable to tax audit, who must deduct TDS on business payments.
- Branches of the same entity, which can hold separate TANs if they deduct separately.
Companies incorporated through SPICe+ usually receive their TAN along with PAN at incorporation. Check the certificate of incorporation before applying again: a second TAN for the same deductor is a mistake that has to be surrendered later.
Who can use PAN instead
| Payment | Who deducts | TAN needed? |
|---|---|---|
| Property purchase above ₹50 lakh from a resident (old 194-IA) | Buyer | No, pay through Form 26QB with PAN |
| Rent above ₹50,000 a month by an individual not under audit (old 194-IB) | Tenant | No, Form 26QC with PAN |
| Contract or professional fees above ₹50 lakh by an individual not under audit (old 194M) | Payer | No, Form 26QD with PAN |
| Crypto purchase by an individual (old 194S) | Buyer | No, Form 26QE with PAN |
| Property purchase from a non-resident by a resident individual or HUF | Buyer | No, from 1 October 2026 the tax can be paid using PAN |
The last row is new. Until 30 September 2026, anyone buying property from an NRI had to obtain a TAN just for one payment. See our TDS on property purchase guide for the rates.
How to apply online, step by step
- Open the Protean (formerly NSDL) TIN portal and choose “Apply for new TAN”, Form 49B.
- Pick the deductor category: company, firm, individual, branch, government and so on. Enter the name exactly as it appears on the PAN.
- Fill the address and contact details. The TAN and all TRACES correspondence go to the email and mobile you give here, so use ones the accounts team monitors.
- Pay ₹77 (including GST) by net banking, card or UPI.
- Submit and save the 14-digit acknowledgement. If you signed with a DSC or Aadhaar e-sign, nothing more is needed. Otherwise print the acknowledgement, sign it and send it to Protean’s Pune office within 15 days.
- Receive the TAN by email once processed, usually within a week or two of the documents reaching Protean. You can check status with the acknowledgement number.
No documents are uploaded with Form 49B. The signature on the acknowledgement must match the authorised signatory: a director for a company, a designated partner for an LLP.
What a TAN looks like, and how to find a lost one
A TAN has ten characters: four letters, five digits and one letter, for example DELA12345B. The first three letters are the jurisdiction code and the fourth is the first letter of the deductor’s name.
If you have lost it, use “Know TAN details” on the income tax e-filing portal, searching by name and state. Do not apply for a new one. To change the address or name on an existing TAN, use the “Changes or correction in TAN data” form on the same Protean portal.
After the TAN arrives
- Register on TRACES and the e-filing portal as a deductor. You need this to download Form 16 and 16A and to handle defaults.
- Deposit TDS monthly by the 7th of the next month (30 April for March) using challan ITNS 281, quoting the TAN.
- File quarterly returns: 24Q for salary, 26Q for other residents, 27Q for non-residents. Due dates are in our TDS return due dates guide.
- Issue certificates: Form 16 to employees once a year, Form 16A to other payees every quarter.
Penalties
| Default | Consequence |
|---|---|
| Not applying for TAN when required | ₹10,000 penalty |
| Not quoting TAN in challans, returns or certificates | ₹10,000 penalty; banks reject challans without it |
| Deducting TDS but depositing late | Interest at 1.5% a month from the date of deduction |
| Filing the TDS return late | ₹200 a day until filed, capped at the TDS amount, plus a possible penalty up to ₹1 lakh |
Frequently asked questions
What is the fee for TAN registration?
The fee is ₹77 including GST, paid online when you submit Form 49B. The same fee applies to a request to change TAN details.
How long does it take to get a TAN?
Usually a week or two after Protean receives the application and, where needed, the signed acknowledgement. Applications signed with a DSC or Aadhaar e-sign move faster because nothing has to be posted.
Do I need a TAN to pay TDS on rent?
Only if you are a business or an individual liable to tax audit. A salaried individual paying rent above ₹50,000 a month deducts 2% and pays through Form 26QC using PAN.
Is TAN the same as PAN?
No. PAN identifies a taxpayer; TAN identifies a deductor of tax at source. A company has both, and must quote the TAN on every TDS challan and return.
Can one company have two TANs?
Separate branches or divisions can hold separate TANs. A single deductor should not apply twice; duplicate TANs must be surrendered.
Need a TAN and your first TDS return filed?
We apply for the TAN and handle monthly TDS deposits and quarterly returns from ₹799 a quarter.
Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Content on this page is reviewed by a chartered accountant or advocate at LexVerge LLP. It is general guidance, not advice on your specific facts.