What is the full form of TAN in income tax?

TAN stands for Tax Deduction and Collection Account Number—a 10-character alphanumeric identifier issued under Section 203A of the Income Tax Act, 1961 (Section 397 of IT Act 2025) to every person responsible for deducting or collecting tax at source.

What is TAN registration and who needs it?

TAN registration is the process of obtaining a Tax Deduction and Collection Account Number via Form 49B on the Protean (NSDL) portal. It is mandatory for every employer, business, or person making TDS-applicable payments (salary, contractor >₹30K, rent >₹2.4L/yr, professional fees >₹30K) or collecting TCS under Section 206C.

How to apply for TAN registration online in 2026?

Visit tin.tin.nsdl.com → Services → TAN → Apply Online (Form 49B). Select category, fill entity & signatory details, validate, pay ₹77 online, verify via Aadhaar OTP or DSC. No physical documents needed. TAN allotted in 3–7 working days. Track status using the 14-digit Token Number.

What is the government fee for TAN registration in 2026?

The official government processing fee is ₹77 (₹65.50 base fee + 18% GST). The same fee applies for new applications and for Change/Correction in TAN Data requests. Payment modes: Net banking, Debit/Credit Card, UPI (online); Demand Draft (physical mode).

How long does it take to get TAN after applying online?

TAN is allotted within 3–7 working days for applications submitted fully online with Aadhaar OTP or DSC verification. For physical acknowledgement mode, processing takes 15–20 working days from the date Protean receives the signed documents.

What is the penalty for not having TAN or quoting wrong TAN?

₹10,000 penalty under Section 272BB (Section 468 of IT Act 2025) for failure to obtain TAN, failure to quote TAN in TDS/TCS returns/challans/certificates, or quoting a false TAN. Additional penalties: ₹200/day u/s 234E for late TDS return filing; ₹10K–₹1L u/s 271H for default in TDS statement filing.

Can a sole proprietor apply for TAN? What documents are needed?

Yes. Sole proprietors making TDS-applicable payments must apply in their individual capacity using their personal PAN (category: Individual/HUF). Documents: Proprietor's PAN, Aadhaar (for OTP), business address proof. No separate business PAN needed. No physical documents for online OTP/DSC mode.

Does a newly incorporated Private Limited Company get TAN automatically via SPICe+?

PAN is auto-allotted via SPICe+, but TAN is NOT automatically allotted for most companies. A separate Form 49B application is required before the first TDS deduction (salary, contractor, rent). Some recent incorporations report auto-allotment; verify on TRACES or apply proactively to avoid penalty.

Updated for FY 2026-27 | Income Tax Act, 2025 Compliant

TAN Registration Online 2026: Complete Guide to Form 49B, Fees & Process

Mandatory for every TDS/TCS deductor under Section 203A. Apply on Protean (NSDL) portal in 15 mins. Govt fee ₹77. Allotment in 3–7 working days. Non-compliance attracts ₹10,000 penalty u/s 272BB.

Income Tax Department, Government of India (processed by Protean eGov Technologies Ltd., formerly NSDL e-Gov)Form 49BOfficial Portal

Filing Procedure FAQs

Key Compliance Specifications

At-a-Glance Statutory Requirements

Mandatory Threshold / Eligibility

Every person/entity responsible for deducting TDS (salary, contractor, rent >₹2.4L/yr, professional fees >₹30K) or collecting TCS under Section 206C. Must apply before first deduction/collection.

Government & Professional Fees

₹77 (₹65.50 base fee + 18% GST). Same fee applies for Change/Correction in TAN Data request.

Processing & Issue Timeline

3–7 working days (online mode with OTP/DSC verification); 15–20 working days (physical acknowledgement mode).

Validity & Renewal Cycle

Lifetime validity. No renewal required. Surrender extra TANs via correction request to avoid ₹10,000 penalty.

Statutory Penalties & Non-Compliance Risks

₹10,000 penalty under Section 272BB (Section 468 of IT Act 2025) for failure to obtain/quote TAN. TDS returns cannot be filed without valid TAN, triggering additional penalties u/s 234E (₹200/day) and 271H (₹10K–₹1L).

What is TAN Registration?

Tax Deduction and Collection Account Number (TAN) is a 10-character alphanumeric identifier (format: AAAA99999A) issued by the Income Tax Department under Section 203A of the Income Tax Act, 1961 (now Section 397 of the Income Tax Act, 2025 effective FY 2026-27). It is mandatory for every person—individual, HUF, company, firm, LLP, trust, AOI/BOI, government office, or local authority—who is responsible for deducting tax at source (TDS) or collecting tax at source (TCS). TAN must be quoted on all TDS/TCS returns (Forms 24Q/26Q/27Q/27EQ for FY 2025-26; Forms 138/140/144/143 from FY 2026-27), challans (Challan 281), and TDS/TCS certificates (Form 16, 16A, 27D).

Statutory Governance

Governing Act: Income Tax Act, 1961 (Section 203A) / Income Tax Act, 2025 (Section 397) read with Rule 114A of Income Tax Rules, 1962

Regulatory Authority: Income Tax Department, Government of India (processed by Protean eGov Technologies Ltd., formerly NSDL e-Gov)

Who Needs to Comply / Eligibility Criteria

Employers deducting TDS on salary (Section 192).

Businesses paying contractors/sub-contractors >₹30,000 per contract or ₹1,00,000 aggregate (Section 194C).

Entities paying professional/technical fees >₹30,000 (Section 194J).

Landlords receiving rent >₹50,000/month (₹2.4 lakh/year) (Section 194-I).

Payers of interest >₹40,000/year (₹50,000 for senior citizens) (Section 194A).

Sellers collecting TCS on specified goods (Section 206C).

Any person notified by CBDT as deductor/collector.

Key Benefits & Strategic Advantages

Statutory protections and operational advantages of timely compliance.

✓Legal compliance: Avoids ₹10,000 penalty u/s 272BB and enables TDS/TCS return filing.

✓Seamless TDS operations: Required for challan payments, return filing on TRACES, and issuing Form 16/16A to deductees.

✓Deductee credit: Ensures TDS credit reflects correctly in deductee's Form 26AS/AIS.

✓Business credibility: Mandatory for government tenders, MSME registrations, and banking compliance.

✓Single identifier: One TAN per deductor (multiple TANs for same branch attract penalty).

Document Checklist

Required Proofs & Paperwork

Documents for Individuals, Sole Proprietors & Founders

01PAN card of the proprietor/individual (mandatory).

02Aadhaar card (for OTP-based e-sign verification).

03Proof of business address (latest utility bill/bank statement/rent agreement).

04Passport-size photograph (only if opting for physical acknowledgement mode).

Official Fee Schedule

Statutory Government Fees & Penalty Matrix

Category / Taxpayer Slabs	Government Fee	Applicable Penalty / Late Fee	Compliance Notes
New TAN Application (Form 49B) – Online Mode	₹77 (₹65.50 + 18% GST)	₹10,000 u/s 272BB for non-obtaining/non-quoting TAN; ₹200/day u/s 234E for late TDS return filing; ₹10,000–₹1,00,000 u/s 271H for default in TDS statement filing.	Fee payable online via net banking, debit/credit card, or UPI on Protean portal. No physical demand draft needed for online mode.
New TAN Application – Physical Mode (TIN-FC)	₹77 (₹65.50 + 18% GST)	Same statutory penalties apply.	Payment via demand draft favouring 'Protean eGov Technologies Ltd.' payable at Mumbai. Acknowledgement + documents must reach Protean within 15 days.
Change/Correction in TAN Data (Form 49B – Correction)	₹77 (₹65.50 + 18% GST)	No additional penalty if filed voluntarily. ₹10,000 penalty persists if incorrect TAN quoted in returns/challans.	Use 'Change or Correction in TAN Data' option on Protean portal. Surrender duplicate TANs via this route to avoid penalty for multiple TANs.

Official Filing Procedure

Step-by-Step e-Filing Workflow

Process executed on the official regulatory portal: https://tin.tin.nsdl.com (or https://tin.tin.proteantech.in)

Access the Official Protean TAN Portal

Visit https://tin.tin.nsdl.com (or https://tin.tin.proteantech.in). Click 'Services' → 'TAN' → 'Apply Online (Form 49B)'. Ensure you are on the official Protean eGov Technologies portal (look for the padlock icon and 'proteantech.in' domain).

Select Applicant Category & Fill Form 49B

Choose the correct category: Company, Branch of Company, Firm/LLP, Association of Persons, Trust, Government, Local Authority, Individual/HUF, etc. Fill all mandatory fields: Legal Name (as per PAN), PAN of entity (or proprietor's PAN for Individual/HUF), Registered/Business Address, AO Code (search by city/ward), Authorised Signatory details (Name, PAN, Aadhaar, Designation), Nature of TDS/TCS payments.

Validate & Submit the Application

Review all entries carefully—errors in PAN, AO Code, or Address cause rejection. Click 'Validate' to check for format errors. Submit the form. A 14-digit Token Number (Acknowledgement Number) is generated instantly. Save/print this acknowledgement.

Pay Government Fee (₹77)

Proceed to payment gateway. Pay ₹77 via Net Banking, Debit Card, Credit Card, or UPI. Payment confirmation is immediate. For physical mode, prepare a Demand Draft of ₹77 favouring 'Protean eGov Technologies Ltd.' payable at Mumbai.

Complete Verification (OTP / DSC / Physical)

Online Mode (Recommended): Select 'e-Sign via Aadhaar OTP' or 'Digital Signature Certificate (DSC)'. Enter OTP sent to Aadhaar-linked mobile. No physical documents need to be sent. Physical Mode: Print acknowledgement, paste 2 passport photos of authorised signatory, sign in the designated box, attach self-attested copies of PAN, Incorporation Certificate/Business Proof, and Address Proof. Mail via speed post to Protean eGov, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016.

Track Status & Receive TAN

Use 'Know Status of Your Application' on the Protean portal with the 14-digit Token Number. TAN is allotted within 3–7 working days (online mode) or 15–20 working days (physical mode). TAN is communicated via email and a physical allotment letter is dispatched by post. Download the TAN allotment letter from the portal once status shows 'Allotted'.

Risk Mitigation & Error Prevention

Common Rejection Causes & Penalty Notices

Common Rejection Mistakes

Mismatch between PAN and Name in Form 49B vs. PAN database.
Incorrect AO Code (Area Code, AO Type, Range Code, AO Number) for the jurisdiction.
Invalid or inactive PAN of the entity/authorised signatory.
Special characters (/, #, &, @) in Name/Address fields causing portal errors.
Incomplete mandatory fields (especially Responsible Person details).
Physical acknowledgement not received by Protean within 15 days of online submission.

Statutory Penalties & Notices

Section 272BB (Section 468 of IT Act 2025): ₹10,000 penalty for failure to apply for TAN, failure to quote TAN in TDS/TCS returns, challans, or certificates, or quoting a false TAN. Section 234E: ₹200 per day late fee for delayed TDS/TCS return filing (cannot file without TAN). Section 271H: ₹10,000 to ₹1,00,000 penalty for failure to file TDS/TCS statement within prescribed time. Banks reject challan payments (Challan 281) without valid TAN. TRACES shows 'Invalid TAN' errors, blocking Form 16/16A generation.

When to Engage a CA / Specialist

Engage a FinacBooks CA/CS if: (1) You need TAN urgently for salary TDS compliance or government tender bidding. (2) Your entity has complex structure (multiple branches, divisions, or joint ventures) requiring separate TANs. (3) You received a notice for TDS default or penalty u/s 272BB/234E/271H. (4) You need to correct/surrender duplicate TANs without triggering TRACES mismatches. (5) You want end-to-end compliance: TAN allotment → TRACES registration → Quarterly TDS return filing (24Q/26Q/27Q) → Form 16/16A issuance.

Frequently Asked Questions

Frequently Asked Questions on TAN Registration

Verified Professional Matching

Get Your TAN Registered in 3 Days – Zero Errors, Full Compliance

FinacBooks' verified CAs handle your end-to-end TAN registration: Form 49B preparation, error-free filing on Protean portal, TRACES registration, and quarterly TDS return filing (Forms 24Q/26Q/27Q). Avoid ₹10,000 penalties and TDS mismatches. 100% remote digital support across India.

Statutory Disclaimer: This guide is for informational purposes only based on the Income Tax Act, 1961, Income Tax Act, 2025, and CBDT notifications as of FY 2026-27. Government fees, portal workflows, and penal provisions are subject to change. Readers should verify current requirements on the official Protean portal (tin.tin.nsdl.com) or consult a qualified Chartered Accountant before acting. FinacBooks is not liable for any losses arising from reliance on this content.

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