About TAN Registration

Tax Deduction Account Number application in Form 49B for entities deducting TDS or TCS. Forms handled: Form 49B. Legal basis: Section 203A Income Tax Act.

Glossary

Plain-English glossary for this service

Deductor

A person responsible for deducting tax at source before making a specified payment; must hold a TAN and file quarterly TDS statements.

TCS

Tax Collected at Source: tax collected by a seller under Section 206C on specified goods/receipts (scrap, timber, foreign remittances, high-value sales) and deposited using the collector's TAN.

TAN

Tax Deduction and Collection Account Number: a 10-character alphanumeric number allotted under Section 203A to every person liable to deduct TDS or collect TCS. Format is four letters, five digits and one letter (e.g. CHEA12345B), where the first three letters denote the jurisdiction city.

Deductee

The person from whose income tax has been deducted at source; claims credit for the TDS through Form 26AS/AIS against PAN.

TDS

Tax Deducted at Source: a mechanism whereby the payer deducts tax from specified payments (salary, rent, contractor fees, interest) and deposits it with the Government against the deductee's PAN.

Form 26AS

Consolidated annual tax statement showing TDS/TCS credited against a PAN; deductee uses it to verify that the deductor's TAN-linked deposits are reflected.

TRACES

TDS Reconciliation Analysis and Correction Enabling System: the Income-tax portal where deductors register against their TAN, file corrections, and download Form 16/16A and consolidated files.

PAN

Permanent Account Number: a 10-character identification number allotted under Section 139A. Unlike TAN, PAN identifies a taxpayer; a deductor needs both PAN (as a taxpayer) and TAN (as a deductor).

Form 49B

The prescribed application form for allotment of a new TAN, filed online or through a TIN-Facilitation Centre under Rule 114A.

TIN-Facilitation Centre

Authorised centre (operated for Protean/NSDL) where a deductor can submit a physical Form 49B and supporting documents for TAN allotment.

Form 16A

Quarterly TDS certificate for non-salary payments, downloaded from TRACES and issued to the deductee within 15 days of the statement due date.

Form 26Q

Quarterly TDS statement for tax deducted on payments other than salary made to residents (contractors, rent, professional fees, interest).

Statutory Basis

Operative provisions cited on this page

Every claim on this page can be traced back to a section or rule below.

Section 203A, Income-tax Act 1961Anchor

TAN requirement — Section 203A

Section 203A makes it mandatory for every person who deducts tax at source (TDS) or collects tax at source (TCS) to apply for and obtain a Tax Deduction and Collection Account Number (TAN). The section requires TAN to be quoted in every TDS/TCS challan, in every TDS/TCS return, in every TDS/TCS certificate, and in other prescribed documents. It is the foundational provision that brings a deductor into the TDS administration framework.

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Rule 114A, Income-tax Rules 1962

Application for TAN in Form 49B — Rule 114A

Rule 114A prescribes that the application for allotment of a TAN under Section 203A must be made in Form 49B. It sets out how a deductor/collector applies, the particulars to be furnished, and directs the application to the authority notified for the purpose (Protean/NSDL e-Gov acting for the Income-tax Department). Applications may be made online or through TIN-Facilitation Centres.

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Section 272BB, Income-tax Act 1961Anchor

Penalty for TAN default — Section 272BB

Section 272BB imposes a penalty of Rs 10,000 for failure to apply for a TAN when required, and a further Rs 10,000 for failure to quote the TAN, or for quoting a false/incorrect TAN, in challans, returns, certificates or other prescribed documents. The penalty is leviable by the Assessing Officer after giving the person an opportunity of being heard; a reasonable-cause defence is available under Section 273B.

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Section 203, Income-tax Act 1961

TDS certificates must carry TAN — Section 203

Section 203 obliges every deductor to issue a certificate of tax deducted (Form 16 for salary, Form 16A for non-salary) to the deductee. These certificates are generated from TRACES only when a valid TAN and correctly filed TDS statement exist, which is why a valid TAN is a precondition to discharging the certificate obligation.

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Section 200 read with Rule 31A, Income-tax Act 1961

TDS deposit and statements quote TAN — Section 200 / Rule 31A

Section 200 requires a deductor to pay the tax deducted to the credit of the Central Government and to deliver quarterly TDS statements. Rule 31A specifies the statements (Form 24Q for salary, 26Q for other resident payments, 27Q for payments to non-residents) and the due dates. Every challan and statement must quote the deductor's TAN, without which credit cannot flow to the deductee's Form 26AS/AIS.

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Section 206C read with Rule 31AA, Income-tax Act 1961

TCS collection and statements quote TAN — Section 206C / Rule 31AA

Section 206C governs collection of tax at source on specified goods and receipts (e.g. scrap, timber, and remittances/tour packages under sub-section 1G/1H). Rule 31AA prescribes the quarterly TCS statement in Form 27EQ. A collector must hold a TAN and quote it in every TCS challan, statement and Form 27D certificate.

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Section 234E, Income-tax Act 1961

Late-filing fee for TDS/TCS statements — Section 234E

Section 234E levies a fee of Rs 200 for every day of delay in filing a TDS/TCS statement, capped at the amount of tax deductible/collectible. The fee is mandatory and must be paid before the statement is filed. It presupposes a functioning TAN because statements are filed against the deductor's TAN; a wrong or missing TAN causes rejection and consequential 234E exposure.

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Section 201(1)/(1A), Income-tax Act 1961

Deductor-in-default and interest — Section 201

A deductor who fails to deduct or, after deducting, fails to deposit TDS is treated as an assessee-in-default under Section 201(1) and is liable to interest under Section 201(1A) at 1% per month for non-deduction and 1.5% per month for non-deposit. Practical compliance with Section 201 is only possible once a TAN is in place, since deposit and reporting run entirely through the TAN.

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Forms Library

Forms used in this engagement

Form 49BApplication for allotment of TAN

Prescribed application for allotment of a new TAN by a person required to deduct TDS or collect TCS. Filed online or at a TIN-Facilitation Centre with the applicable fee; a 10-character alphanumeric TAN is allotted on approval.

Before the first TDS deduction / TCS collection Protean (NSDL e-Gov) / TIN-FC for the Income-tax Department

TAN Change RequestCorrection/change in TAN data

Used to correct or update details already recorded against an existing TAN (name, address, contact) or to surrender a duplicate TAN allotted in error.

As and when particulars change Protean (NSDL e-Gov) / TIN-FC

ITNS 281Challan for TDS/TCS payment

Challan used to deposit tax deducted or collected to the Government; the deductor's TAN is a mandatory field and drives credit to the deductee.

By 7th of the following month (30 April for March) Authorised banks via TIN 2.0 / e-Pay Tax

Form 24Q / 26Q / 27QQuarterly TDS statements

Quarterly statements of TDS: 24Q for salaries, 26Q for other resident payments, 27Q for payments to non-residents. Filed against the deductor's TAN and reconciled to challans and PAN-wise deductee entries.

Q1 31 Jul, Q2 31 Oct, Q3 31 Jan, Q4 31 May TRACES / Protean e-filing (RPU + FVU)

Form 27EQQuarterly TCS statement

Quarterly statement of tax collected at source, filed by collectors under Section 206C against their TAN, feeding the collectee's Form 26AS.

Q1 15 Jul, Q2 15 Oct, Q3 15 Jan, Q4 15 May TRACES / Protean e-filing

Form 16 / 16ATDS certificates

TDS certificates issued to deductees: Form 16 for salary and Form 16A for non-salary payments. Generated from TRACES only against a valid TAN and correctly filed statement.

Form 16 by 15 June; Form 16A within 15 days of statement due date TRACES portal (deductor download)

Statutory Deadlines

Compliance deadlines that matter

Miss any of these and the next consequence kicks in automatically.

Trigger event	Days	Form	Consequence
Becoming liable to deduct TDS or collect TCS (first deduction event)	On due date	Form 49B	TAN must already be held before the first deduction/collection; operating without a TAN attracts Rs 10,000 penalty under Section 272BB and blocks challan payment and return filing.
TDS deducted in a month (April to February)	7 days	TDS challan (ITNS 281)	Tax deducted must be deposited by the 7th of the following month; delay attracts interest at 1.5% per month under Section 201(1A).
TDS deducted in March	30 days	TDS challan (ITNS 281)	Tax deducted in March must be deposited by 30 April; late deposit triggers Section 201(1A) interest and disallowance risk under Section 40(a)(ia).
End of Quarter 1 (Apr-Jun) TDS statement	31 days	Form 24Q / 26Q / 27Q	Quarterly TDS statement due 31 July; delay attracts Section 234E fee of Rs 200 per day (capped at tax deductible).
End of Quarter 4 (Jan-Mar) TDS statement	61 days	Form 24Q / 26Q / 27Q	Q4 statement due 31 May (61 days after quarter-end); late filing draws Section 234E fee and delays Form 16/16A issuance.
Filing of quarterly TDS statement (issuing Form 16A)	15 days	Form 16A (from TRACES)	Non-salary TDS certificates in Form 16A must be issued within 15 days of the statement due date; default draws Rs 100 per day under Section 272A(2)(g).
Change in deductor particulars (name/address) after TAN allotment	On due date	TAN Change Request form	Corrections to TAN data should be filed promptly via the TAN change-request route so challans and statements carry accurate details and are not rejected.

Comparison

TAN vs PAN

Aspect	TAN	PAN
Governing section	Allotted under Section 203A of the Income-tax Act 1961 as a deduction/collection account number.	Allotted under Section 139A of the Income-tax Act 1961 as a taxpayer identification number.
Primary purpose	Identifies a deductor/collector for administering TDS and TCS; quoted in challans, statements and certificates.	Identifies a taxpayer for all income-tax matters, including filing returns and claiming TDS credit.
Who must obtain it	Only persons liable to deduct TDS or collect TCS (employers, businesses making specified payments, collectors).	Virtually every taxpayer, entity and person entering specified financial transactions.
Format	10 characters: 4 letters + 5 digits + 1 letter (e.g. CHEA12345B); first three letters denote the city.	10 characters: 5 letters + 4 digits + 1 letter (e.g. AAAPZ1234C); fourth letter denotes holder type.
Application form	Form 49B under Rule 114A, filed with Protean/NSDL or a TIN-FC.	Form 49A (residents) or 49AA (non-residents) under Rule 114.
Penalty for default	Rs 10,000 under Section 272BB for not obtaining or wrongly quoting TAN.	Rs 10,000 under Section 272B for not obtaining, or for quoting an incorrect PAN.