A TAN, or Tax Deduction and Collection Account Number, is a ten-character number that any business required to deduct TDS or collect TCS must obtain from the Income Tax Department. It must be quoted on all TDS and TCS returns, challans, and certificates, and operating without it attracts a penalty. A TAN is permanent and applied for in Form 49B. Samkhya handles your TAN application.
A Tax Deduction and Collection Account Number (TAN) is a ten-character alphanumeric number issued by the Income Tax Department that must be obtained by every person or business required to deduct tax at source (TDS) or collect tax at source (TCS), for example, an employer deducting TDS on salaries or a business deducting TDS on specified payments. The TAN must be quoted on all TDS and TCS returns, payment challans, and certificates, and failing to obtain or quote it attracts a penalty. It is applied for in Form 49B through Protean (formerly NSDL) or online, carries only a small fee, and is permanent, never needing renewal. Any business that makes payments attracting TDS therefore needs a TAN before it begins deducting.
A TAN is needed for several reasons:
A few points are worth noting:
TDS or TCS is deducted or collected by:
A TAN is needed by:
A TAN is issued by the Income Tax Department through Protean (formerly NSDL). The applicant files Form 49B online or through a facilitation centre, providing the deductor’s name, address, and details of the person responsible for deducting tax, and pays the small processing fee. On processing, the ten-character TAN is allotted and must thereafter be quoted on every TDS and TCS return, challan, and certificate. Unlike a PAN, which identifies the taxpayer, a TAN specifically enables the deduction and deposit of tax at source, so a business that starts making payments attracting TDS should obtain its TAN before deducting.
For the application, the deductor provides:
Applying for a TAN follows a clear sequence:
Getting your TAN with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team handles the application and obtains your TAN.
After a TAN is allotted:
A TAN application in Form 49B carries only a small processing fee, and the TAN itself is permanent, never needing renewal. A TAN is not a tax; it is the number through which a deductor accounts for the tax it deducts or collects. The cost of not having one, however, is real: failing to obtain a TAN, or failing to quote it where required, attracts a penalty of Rs. 10,000 under the relevant provision, and TDS or TCS returns cannot be filed without it. Beyond the TAN itself, a deductor must deposit the deducted tax on time and file periodic TDS and TCS returns, as delays attract interest and late fees. Obtaining the TAN before deductions begin keeps the business compliant from the first payment.
| Feature | Detail |
| Full Form | Tax Deduction and Collection Account Number. |
| Needed By | Those who deduct TDS or collect TCS. |
| Form | Form 49B. |
| Issued By | Income Tax Department (via Protean). |
| Validity | Permanent, no renewal. |
| Penalty | Rs. 10,000 for not obtaining or quoting. |
What is a TAN?
A TAN, or Tax Deduction and Collection Account Number, is a ten-character number issued by the Income Tax Department that anyone deducting TDS or collecting TCS must obtain.
Who needs a TAN?
Any business or person required to deduct tax at source, such as employers deducting TDS on salaries or businesses deducting TDS on rent, contractor, or professional payments.
How is a TAN obtained?
It is applied for in Form 49B through Protean, online or at a facilitation centre, after which the ten-character TAN is allotted.
Is a TAN the same as a PAN?
No. A PAN identifies a taxpayer, while a TAN is used specifically to deduct and deposit tax at source.
Does a TAN need renewal?
No. A TAN is permanent and never needs renewal once allotted.
What if I deduct TDS without a TAN?
Failing to obtain or quote a TAN attracts a penalty of Rs. 10,000, and TDS or TCS returns cannot be filed without it.
