What is TAN Registration?
If your business pays salaries, professional fees, rent or contractor bills above certain limits, the law usually requires you to deduct tax at source (TDS) before making the payment. To do that, you need a Tax Deduction and Collection Account Number, known as a TAN. Without it, you cannot deposit TDS, file TDS returns or issue TDS certificates.
TAN registration is the process of applying to the Income Tax Department for a unique account number that identifies you as a person who deducts or collects tax at source. The number is issued after your application is processed through an authorised agency, such as Protean eGov Technologies (formerly NSDL e-Gov).
Timeline
A few days, plan for up to 2 weeks
Government Fee
About ₹77 (₹65 + GST)
What is a TAN number?
A TAN number is a 10-character alphanumeric code. It has four letters, then five digits, then one final letter. The first letters relate to the jurisdiction and the deductor's name, though you don't need to decode it to use it.
- It is issued to the deductor or collector, not to the person receiving the payment
- It has lifetime validity, so you don't renew it every year
- It is different from PAN. PAN identifies a taxpayer, while TAN identifies a person who deducts or collects tax
Is TAN mandatory?
Yes, for anyone who is required to deduct or collect tax at source. You must quote your TAN on:
- TDS and TCS payment challans
- TDS and TCS returns
- TDS and TCS certificates given to the people you paid
- Correspondence with the tax department about deducted tax
Deducting tax without having a TAN can attract a penalty. Sources commonly cite ₹10,000 under the old Income-tax Act, 1961. The new Act has renumbered sections, so verify the current provision before quoting an amount.
Who does not need a TAN?
Certain payers are allowed to quote their PAN instead of a TAN. This applies to specific cases such as an individual or HUF that deducts tax on rent for property, on property purchase, or on certain large cash-free payments where the law gives that relief. These provisions have section numbers that changed under the new Act, so check the current rules.
Who Needs to Apply for TAN?
If any of the following applies to you and you are liable to deduct or collect tax, you need a TAN.
Companies, LLPs and partnership firms paying salaries, contractor fees, professional fees, commission, rent or interest
Proprietors whose accounts are subject to audit and who make TDS-liable payments
Trusts, societies and associations
Government offices and other public bodies
Sellers or collectors covered by tax collection at source
A startup that hires its first employee and pays a salary above the basic exemption limit will usually need a TAN to deduct tax on that salary.
Does a company get a TAN automatically?
Not always. Companies incorporated through the MCA's integrated incorporation process typically receive a TAN together with their PAN at the time of incorporation. Firms, LLPs formed by other routes, individuals and trusts usually have to apply separately. If you are unsure, check your certificate documents and the portal before applying again. A second TAN for the same business location is generally not needed.
Benefits of Getting a TAN
Lets you deduct and deposit tax legally
Allows you to file TDS returns and issue TDS certificates
Ensures the people you pay get credit for the tax you deduct
Avoids penalties and notices for non-compliance
Builds credibility with vendors, employees and auditors
TAN Registration Documents and Details
For the standard application, no supporting documents are usually required to be uploaded. Sources consistently say that the TAN application does not need attached proofs. But you must give accurate details, and these should match your records.
Name of the deductor, as per PAN or incorporation record
Category of deductor: company, firm, individual, trust and so on
PAN of the deductor, where available
Address of the business or office
Contact details: mobile number and email
Name and designation of the responsible person who signs and is accountable for TDS
Assessing officer details. The portal usually helps you find your area code
After an online application, you may be asked to complete a step such as sending or signing an acknowledgement. The requirement depends on the signing options available in the current process, so follow the on-screen instruction. A paper acknowledgement sent late is one of the most common reasons an application stays pending.
TAN Application Online: Step by Step
The process is fully online on the authorised portal.
1
Open the official portal
Go to the Protean TAN service page or the Income Tax Department's link to it. Use only the official website to avoid third-party markups or scams.
2
Choose the online application for a new TAN
Select the form shown on the portal for your category.
3
Enter your details carefully
Include name, category, PAN, address and the responsible person.
4
Select your assessing officer area code
The portal usually provides a lookup.
5
Review the confirmation screen
Correct any errors before proceeding.
6
Pay the fee online
By net banking, card or UPI.
7
Download the acknowledgement
Complete any signing step the portal requires. Keep the acknowledgement number for tracking.
8
Track the status
Use the acknowledgement number.
9
Receive your TAN
By email or post once it is allotted.
TAN Registration Fee and Timeline
TAN registration fee
Sources report a processing fee of about ₹65 plus GST, which comes to roughly ₹77. A few sources describe the fee slightly differently, for example ₹65 as a total or a differently split base amount. The exact figure should be checked on the payment screen before you pay.
If you use a professional, ask for an itemised quote so you know what portion is government charge and what is a service fee.
How long does it take?
For a clean application, the TAN is often allotted within a few working days. Some sources say three to seven working days, while others suggest a longer window if the acknowledgement or details need to be verified. Plan for up to two weeks, especially if you need the number for the first month's payroll.
Common Reasons for Delay or Rejection
- Name or category that doesn't match the PAN or incorporation record
- Wrong jurisdiction or area code
- Acknowledgement not submitted or signed as required
- Missing or wrong contact details
- Duplicate application when a TAN already exists
- Choosing the wrong category of deductor
- Wrong responsible person or designation
After You Get Your TAN: What to Do Next
Once the number arrives, move straight to TRACES registration, correct deduction and timely deposit and return filing.
1
Keep the TAN allotment letter
Record the number in your accounts file.
2
Register on the TRACES portal as a deductor
TRACES lets you view credit, download certificates and manage corrections.
3
Deduct TDS at the correct rate
On each covered payment.
4
Deposit the tax by the due date
Use a challan quoting your TAN.
5
File quarterly TDS returns on time
With the correct PAN of every person you paid.
6
Issue TDS certificates
Such as the salary certificate to employees and the certificate for other payments to vendors and professionals.
7
Reconcile your records
So that the person you paid sees the credit in their tax statement.
Return and certificate form numbers changed with the new rules, so check current names and due dates.
What if I need to change my TAN details?
You do not apply for a new TAN. Use the TAN correction or change request on the same portal to update details such as name, address or category. A small fee usually applies, and the fee is similar to the fresh application fee, so confirm it on screen.
TAN vs PAN
You may need both. A business generally has its own PAN and, if it deducts tax, its own TAN.
| Point | TAN | PAN |
|---|
| Full form | Tax Deduction and Collection Account Number | Permanent Account Number |
| Who holds it | Person who deducts or collects tax | Taxpayer |
| Purpose | TDS and TCS compliance | Identification for income tax and financial transactions |
| Quoted on | TDS and TCS returns, challans, certificates | ITR, bank and investment transactions |
| Length | 10 characters (4 letters, 5 digits, 1 letter) | 10 characters (5 letters, 4 digits, 1 letter) |
| Validity | Lifetime | Lifetime |
What If I Don't Apply for TAN When Required?
- You cannot deposit TDS properly or file TDS returns
- Penalty may be levied for failure to obtain or quote the number. The old law set this at ₹10,000. Check the equivalent provision in the new Act
- Interest and late fees can arise from late deposit or late filing of TDS statements
- Disallowance of expenses can be triggered where TDS was not deducted or deposited
- Payees cannot claim credit if your TDS is not properly reported, which damages relationships with vendors and employees
Why Work With LegalDev India
Application prepared and checked before it is filed
Category, name and area code matched to your records
Clear split between government charge and service fee
Frequently Asked Questions
It is the process of applying for a Tax Deduction and Collection Account Number, which you need to deduct, deposit and report tax at source.
Use the official Protean TAN application service, choose the new TAN application, fill in the details, pay the fee and download the acknowledgement.
About ₹77 in total, based on ₹65 plus GST in most sources. Confirm on the payment page.
Usually a few working days for a correct application. Plan for up to two weeks.
Generally no documents need to be uploaded, but the information must be accurate and match your records.
Some pages and parts of the portal still use the name, while several professional sources report new forms (134 and 135) under the Income-tax Act, 2025. Follow the form you see on the official portal.
Anyone required to deduct or collect tax at source, such as employers, companies, firms and other payers.
In certain cases specified in the law, for example some payments by individuals and HUFs who are not otherwise required to deduct tax, you can quote PAN. Check the current provision.
Yes. There is no renewal, but you must keep your details updated.
Generally one TAN is used per deductor, though larger organisations may hold separate TANs for different branches or assessing officer areas. Check with your tax advisor.
Yes. The process is online and does not require a professional, but errors in category and area code are common.
TIN, the Tax Information Network, is the system that processes the data, and Protean runs its facilities. TAN is your account number. The two names are often confused.
The portal or agency will indicate the reason. Correct the details and resubmit or raise a correction request.
Yes, companies incorporated through the integrated MCA process commonly receive a TAN along with PAN.
You can look it up on the portal using your details or check old TDS challans and certificates.
Conclusion
TAN registration is one of the simplest and cheapest compliance steps for a business, but it is a step you cannot skip once you have TDS obligations. Apply on the official portal, check the form name and fee on the day you apply, and keep the acknowledgement safe. After you receive the number, move straight to TRACES registration, correct deduction and timely deposit and return filing so your suppliers and employees receive the credit they are due.
If you would like your TAN application prepared and checked before filing, speak to the LegalDev India team.