{"id":5365,"date":"2022-05-11T07:26:17","date_gmt":"2022-05-11T07:26:17","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=5365"},"modified":"2026-06-22T19:08:19","modified_gmt":"2026-06-22T19:08:19","slug":"what-is-tan-and-its-importance","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/","title":{"rendered":"What Is TAN? Meaning, Full Form and Importance for Indian Businesses in 2026"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"273\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/TNA-500x273.jpg\" alt=\"\" class=\"wp-image-15281\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/TNA-500x273.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/TNA-768x419.jpg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/TNA.jpg 1024w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaways<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TAN stands for Tax Deduction and Collection Account Number, a 10-digit alphanumeric code issued by the Income Tax Department.<\/li>\n\n\n\n<li>Obtaining TAN is mandatory under Section 203A of the Income Tax Act, 1961 for all entities required to deduct or collect tax at source.<\/li>\n\n\n\n<li>Businesses, NRIs, and individuals involved in TDS or TCS transactions must have a TAN.<\/li>\n\n\n\n<li>TAN and PAN serve different purposes. TAN is for deductors; PAN is for all taxpayers.<\/li>\n\n\n\n<li>Failure to obtain or quote TAN can attract a penalty of up to INR 10,000 under the Income Tax Act.<\/li>\n<\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#What_Is_A_TAN\" >What Is A TAN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#TAN_vs_PAN_Key_Differences\" >TAN vs PAN: Key Differences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#Importance_of_TAN_For_Individuals\" >Importance of TAN For Individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#Importance_of_TAN_For_Businesses\" >Importance of TAN For Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#Eligibility_To_Apply_For_TAN\" >Eligibility To Apply For TAN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#How_to_Apply_for_TAN_Online_NSDL_Portal_in_2026\" >How to Apply for TAN Online (NSDL Portal) in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#How_To_Check_Status_of_TAN_Application\" >How To Check Status of TAN Application?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#FAQ\" >FAQ<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#1_What_is_the_full_form_of_TAN\" >1. What is the full form of TAN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#2_Who_is_required_to_obtain_TAN\" >2. Who is required to obtain TAN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#3_What_is_the_penalty_for_not_having_TAN\" >3. What is the penalty for not having TAN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#4_Can_a_sole_proprietor_apply_for_TAN\" >4. Can a sole proprietor apply for TAN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#5_Where_can_I_obtain_Form_49B\" >5. Where can I obtain Form 49B?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#6_Should_separate_TANs_be_obtained_for_TDS_and_TCS\" >6. Should separate TANs be obtained for TDS and TCS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#7_Can_TAN_be_applied_for_online_and_offline\" >7. Can TAN be applied for online and offline?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#8_Is_TAN_linked_to_GST_filings\" >8. Is TAN linked to GST filings?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.indifi.com\/blog\/what-is-tan-and-its-importance\/#Disclaimer\" >Disclaimer<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_A_TAN\"><\/span><strong>What Is A TAN<\/strong>?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric identifier assigned by the Income Tax Department of India to every person or entity responsible for deducting tax at source (TDS) or collecting tax at source (TCS). The Central Board of Direct Taxes (CBDT) mandates<a href=\"https:\/\/www.incometaxindia.gov.in\/w\/section-203a-26\"> TAN under Section 203A<\/a> of the Income Tax Act, 1961.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 10 characters follow a specific format: the first four are letters, followed by five digits, and ending with one letter, for example AAAA12345A. Each TAN is unique and must be quoted on all TDS and TCS returns, challans, and certificates. The NSDL (National Securities Depositories Limited) processes TAN applications on behalf of the Central Government.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A key point: <a href=\"https:\/\/www.incometaxindia.gov.in\/w\/what-is-the-difference-between-pan-and-tan-\">PAN and TAN are different<\/a>. PAN identifies a taxpayer; TAN identifies a deductor or collector of tax. A business may hold both, but they serve distinct purposes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TAN_vs_PAN_Key_Differences\"><\/span><strong>TAN vs PAN: Key Differences<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many small business owners confuse TAN with PAN. Here is a clear comparison:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>TAN<\/strong><\/td><td><strong>PAN<\/strong><\/td><\/tr><tr><td>Full Form<\/td><td>Tax Deduction and Collection Account Number<\/td><td>Permanent Account Number<\/td><\/tr><tr><td>Purpose<\/td><td>Identifies entities deducting or collecting tax at source<\/td><td>Identifies all taxpayers for income tax purposes<\/td><\/tr><tr><td>Who Needs It<\/td><td>Businesses, individuals, NRIs deducting or collecting TDS or TCS<\/td><td>All taxpayers: individuals, businesses, trusts<\/td><\/tr><tr><td>Format<\/td><td>10-digit alphanumeric (e.g., AAAA12345A)<\/td><td>10-digit alphanumeric (e.g., ABCDE1234F)<\/td><\/tr><tr><td>Issued by<\/td><td>Income Tax Department via NSDL\/UTITSL<\/td><td>Income Tax Department via NSDL\/UTITSL<\/td><\/tr><tr><td>Where Used<\/td><td>TDS\/TCS returns, challans, certificates, Form 16\/16A<\/td><td>Income tax returns, financial transactions, KYC<\/td><\/tr><tr><td>Application Form<\/td><td><a href=\"https:\/\/www.incometaxindia.gov.in\/documents\/d\/guest\/english-form-49b-on-17-03-2026-pdf\">Form 49B<\/a><\/td><td>Form 49A (individuals) \/ 49AA (foreign entities)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_TAN_For_Individuals\"><\/span><strong>Importance of TAN For Individuals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While a PAN card is the primary identity document for most tax purposes, certain individuals are also required to hold TAN. Non-Resident Indians (NRIs) involved in transactions with resident Indians, such as the sale or purchase of property, may need TAN if TDS applies to the transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, when a resident Indian purchases property from an NRI, the buyer must deduct TDS at source on the transaction value. Under the Income Tax Act, property transactions above INR 50 lakh attract TDS at 1% for resident sellers. For NRI sellers, the TDS rate is higher and governed by applicable provisions. In both cases, the deductor must quote TAN on the challan and in Form 16A, the TDS certificate issued to the payee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, if an NRI pays rent to an Indian resident or makes professional fee payments above the specified threshold, TDS obligations and therefore TAN requirements apply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/everything-msmes-need-to-know-about-gst\/\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/www.indifi.com\/blog\/everything-msmes-need-to-know-about-gst\/\">Everything MSME&#8217;s Need To Know About GST<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_TAN_For_Businesses\"><\/span><strong>Importance of TAN For Businesses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For businesses, particularly MSMEs, TAN is essential to remain compliant with India&#8217;s TDS and TCS framework. Micro, Small, and Medium Enterprises (MSMEs) must apply for TAN by completing Form 49B, available on the NSDL portal. The NSDL acts as the intermediary between businesses and the Income Tax Department for TAN issuance and management.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">TAN is mandatory in the following business scenarios:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Salary payments above the basic exemption limit: employers must deduct TDS and report it against their TAN.<\/li>\n\n\n\n<li>Payments to contractors: Section 194C requires TDS deduction on contractual work where the annual aggregate exceeds INR 1 lakh.<\/li>\n\n\n\n<li>Professional fees above INR 30,000: TDS at 10% applies under Section 194J.<\/li>\n\n\n\n<li>Rent payments above INR 2,40,000 per annum: TDS is applicable under Section 194I.<\/li>\n\n\n\n<li>E-commerce operators: Section 194O mandates TDS deduction on payments made to sellers.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3-500x91.jpg\" alt=\"MSME loan for Wholesalers\" class=\"wp-image-5351\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">In GST-registered businesses, TAN helps link the Output GST and Input GST set-off process with the corresponding TDS or TCS transactions, ensuring transparency for audits. Businesses operating across multiple branches must ensure each branch maintains its own TAN for transactions handled at that location.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/new-gst-rates-in-2022\/\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/www.indifi.com\/blog\/new-gst-rates-in-2022\/\">New GST Rates In 2022<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_To_Apply_For_TAN\"><\/span><strong>Eligibility To Apply For TAN<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Any person, including individuals, companies, partnership firms, Limited Liability Partnerships (LLPs), trusts, or government bodies, who is required to deduct or collect tax at source under the Income Tax Act, 1961, must apply for TAN. Specifically:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employers paying salaries above the basic tax exemption threshold<\/li>\n\n\n\n<li>Businesses making payments to contractors, professionals, or consultants above prescribed limits<\/li>\n\n\n\n<li>Landlords or lessees making or receiving rent payments above INR 2,40,000 per annum where TDS applies<\/li>\n\n\n\n<li>E-commerce operators liable under Section 194O<\/li>\n\n\n\n<li>NRIs involved in property transactions with Indian residents<\/li>\n\n\n\n<li>Individuals making payments under Section 194M, applicable if annual contractual or professional payments exceed INR 50 lakh<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/business-loan\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2021\/09\/Business-Loan-500x91.jpg\" alt=\"Business-Loan\" class=\"wp-image-4591\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2021\/09\/Business-Loan-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2021\/09\/Business-Loan.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">One important rule: an entity cannot hold more than one TAN. If a business has inadvertently obtained multiple TANs, only the one most frequently quoted in filings is considered valid. The remaining TANs must be surrendered. Different branches or divisions of the same business, however, may each hold a separate TAN for transactions conducted from that branch.<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/gstin-what-is-gstin-number-check-verify-gstin-uin-number-online\/\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/www.indifi.com\/blog\/gstin-what-is-gstin-number-check-verify-gstin-uin-number-online\/\">GSTIN: What Is GSTIN Number? \u2013 Check &amp; Verify GSTIN\/UIN Number Online?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Apply_for_TAN_Online_NSDL_Portal_in_2026\"><\/span><strong>How to Apply for TAN Online (NSDL Portal) in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">TAN applications are processed through the NSDL e-Gov TIN portal. The application fee is INR 65, inclusive of applicable taxes. Follow these steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Visit https:\/\/www.tin-nsdl.com and navigate to Services > TAN.<\/li>\n\n\n\n<li>Click &#8216;Apply Online&#8217; and select &#8216;New TAN&#8217;.<\/li>\n\n\n\n<li>Select the applicable category of deductor from the dropdown list.<\/li>\n\n\n\n<li>You will be directed to Form 49B. Fill in all required details: name, address, nature of business, and deductor category.<\/li>\n\n\n\n<li>Submit the form and pay the application fee online.<\/li>\n\n\n\n<li>You will receive a 14-digit acknowledgement number. Retain this for tracking your application.<\/li>\n\n\n\n<li>The TAN is typically issued within 5 to 7 working days and sent to the registered address.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Documents required: Aadhaar card or other identity proof, PAN card, and address proof. Note that <a href=\"https:\/\/www.indiatoday.in\/business\/personal-finance\/story\/applying-for-tan-income-tax-dept-replaces-form-49b-with-two-new-forms-2894177-2026-04-10\">Form 49B cannot be self-designed<\/a>; it must be used as structured by NSDL.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_To_Check_Status_of_TAN_Application\"><\/span>How To Check Status of TAN Application?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">After submitting your application, you can track its status using the 14-digit acknowledgement number:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Visit the NSDL e-Gov TIN portal.<\/li>\n\n\n\n<li>Click on &#8216;Status Track&#8217; under the TAN section.<\/li>\n\n\n\n<li>Select the applicant type.<\/li>\n\n\n\n<li>Enter your 14-digit acknowledgement number and the captcha.<\/li>\n\n\n\n<li>Click &#8216;Submit&#8217; to view the current status of your application.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Status tracking is available after three working days from the date of application submission.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ\"><\/span><strong>F<\/strong>AQ<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_the_full_form_of_TAN\"><\/span><strong>1. What is the full form of TAN?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric code issued by the Income Tax Department under Section 203A of the Income Tax Act, 1961 to entities required to deduct or collect tax at source.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Who_is_required_to_obtain_TAN\"><\/span><strong>2. Who is required to obtain TAN?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Any individual, business, or entity responsible for deducting tax at source (TDS) or collecting tax at source (TCS) must obtain TAN. This includes employers deducting salary TDS, businesses making contractor or professional fee payments above prescribed limits, and e-commerce operators covered under Section 194O.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_is_the_penalty_for_not_having_TAN\"><\/span><strong>3. What is the penalty for not having TAN?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Under Section 272BB of the Income Tax Act, failure to obtain TAN or failure to quote TAN where required can attract a penalty of up to INR 10,000. The same penalty applies to quoting an incorrect TAN on returns or challans.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Can_a_sole_proprietor_apply_for_TAN\"><\/span><strong>4. Can a sole proprietor apply for TAN?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. A sole proprietor who is required to deduct TDS, for example on payments to contractors, professionals, or employees, must apply for TAN. The application is made through Form 49B on the NSDL portal. The individual&#8217;s PAN and identity documents are required at the time of application.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Where_can_I_obtain_Form_49B\"><\/span><strong>5. Where can I obtain Form 49B?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Form 49B is available for free on the NSDL e-Gov TIN portal at https:\/\/www.tin-nsdl.com. The form cannot be customised; it must be completed exactly as structured by NSDL. TIN-FC (Tax Information Network Facilitation Centres) can assist applicants who need help completing the form.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Should_separate_TANs_be_obtained_for_TDS_and_TCS\"><\/span><strong>6. Should separate TANs be obtained for TDS and TCS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No. A single TAN is sufficient for both TDS and TCS transactions. An entity is not permitted to hold more than one TAN. If multiple TANs have been issued to the same entity, all but the primary TAN must be surrendered to the Income Tax Department.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Can_TAN_be_applied_for_online_and_offline\"><\/span><strong>7. Can TAN be applied for online and offline?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. TAN applications can be submitted both online through the NSDL e-Gov TIN portal and offline at any TIN-FC. For online applications, the applicant submits Form 49B digitally and pays the fee electronically. For offline applications, the completed form and supporting documents are submitted at a TIN-FC in person.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Is_TAN_linked_to_GST_filings\"><\/span><strong>8. Is TAN linked to GST filings?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">TAN itself is not a GST requirement. However, for businesses that collect or deduct tax, TAN is used to link TDS and TCS transactions with GST obligations, particularly for setting off Input GST against Output GST where applicable. The Income Tax Department and GST Council maintain separate but interlinked compliance frameworks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disclaimer\"><\/span><strong>Disclaimer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This content is produced by Indifi Technologies Private Limited for informational purposes only. It does not constitute financial advice, a loan offer, or a guarantee of loan approval. All loans are subject to the lending partner&#8217;s credit assessment, eligibility criteria, and terms and conditions. Interest rates, loan amounts, and tenures are indicative and may vary. Past disbursement timelines are not a guarantee of future processing times. Indifi Technologies Private Limited is a loan origination platform and does not provide loans directly. Lending partners are regulated entities as per applicable RBI guidelines.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways What Is A TAN? TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric identifier assigned by the Income Tax Department of India to every person or entity responsible for deducting tax at source (TDS) or collecting tax at source (TCS). The Central Board of Direct Taxes (CBDT) mandates [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[],"class_list":["post-5365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=5365"}],"version-history":[{"count":11,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5365\/revisions"}],"predecessor-version":[{"id":15282,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5365\/revisions\/15282"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/5367"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=5365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=5365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=5365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}