Differences

This shows you the differences between two versions of the page.

@@ Line 1: / Line 1: @@
+{{htmlmetatags>metatag-keywords=(how to apply for TAN,TAN application 2026,Tax Deduction Account Number,Form 49B,NSDL Protean TAN,UTIITSL TAN,section 203A,TDS deduction TAN,TAN for property buyer,TAN for employer,TAN for rent payer,Challan ITNS 281,Form 16 Form 16A,quarterly TDS return)&metatag-description=(Step-by-step 2026 guide to applying for TAN — Tax Deduction Account Number — required for any person deducting TDS on salary, property, rent, contracts, professional fees. Form 49B at NSDL Protean / UTIITSL. Plain language. With escalation: NSDL helpdesk → CBDT TAN Cell → RTI to PIO Income Tax.)}}
+====== How to apply for TAN (Tax Deduction Account Number) — complete 2026 guide ======
+{{ :social:auto:apply-tan-tds-deduction-2026.png?direct&1200 |How to apply for TAN in 2026 — RTI Wiki citizen guide}}
+{{page>snippets:dpdp-banner}}
+<WRAP info>
+**Quick answer.** A **TAN (Tax Deduction Account Number)** is a 10-character alphanumeric code (e.g., **MUMS12345B**) issued by the Income Tax Department to anyone — individual or entity — who is required to **deduct tax at source (TDS)**. Apply online at **tin-nsdl.com** or **utiitsl.com** using **Form 49B**, pay ₹65 (₹55 fee + ₹10 service charge), and the TAN is allotted in **7-15 days** (sometimes same day for clean eKYC). Mandatory under **§203A of the Income Tax Act, 1961** for: employers paying salary above the basic exemption, property buyers (TDS u/s 194-IA), rent payers above ₹50,000/month, contract payments above ₹30,000, professional fees above ₹30,000. Penalty for not having TAN when needed: **₹10,000 under §272BB**. Individuals deducting TDS on rent or property in personal capacity can use **PAN** instead of TAN under §194-IA / §194-IB.
+</WRAP>
+===== Rakesh's story — "Bought a ₹78 lakh apartment, needed TAN in 7 days" =====
+<WRAP center round box 80%>
+//Rakesh Mehta, 34, IT manager in Mumbai. Bought a 2-BHK in Goregaon East from a builder-resale (individual seller) for ₹78,00,000 in July 2025 — bank loan ₹62 lakh, own contribution ₹16 lakh.//
+> "The sale agreement was signed on **8 July 2025** with possession on 31 July. My loan disbursement was scheduled for 25 July. The bank's lawyer flagged it three days before disbursement: 'You're a buyer of property over ₹50 lakh — you must deduct **1% TDS under §194-IA = ₹78,000**, deposit it via Challan 26QB, and issue **Form 16B** to the seller. You need a TAN.' I'd never heard of TAN. I had a PAN. The lawyer said, 'For 194-IA, technically PAN works under the simplified flow on tin-nsdl.com → 26QB; you don't strictly need TAN — but for any other contractor / professional payment in the future you will.' I decided to get both. On **15 July at 11:14 pm** I went to tin-nsdl.com → 'Apply for TAN' → 'New TAN' → 'Form 49B'. Filled name, address, type of deductor 'Individual / Branch of Individual', category, PAN. Paid ₹65 by UPI. The eKYC (Aadhaar OTP) succeeded — bypassed the physical document mailing. Acknowledgement number 010120000049876 generated. **TAN MUMS12345B emailed to me on 21 July at 6:42 am — six days flat.** For the property TDS itself I used the simpler 26QB route (PAN-based, no TAN needed), deposited ₹78,000 via Challan ITNS 281 on 28 July, generated Form 16B from TRACES on 5 August, and gave it to the seller. The seller's 26AS reflected the ₹78,000 by 18 August. **Total cost: ₹65 for TAN + 30 minutes.** The CA my colleague used quoted ₹2,500 for 'TAN application + handholding'."
+—Rakesh, August 2025
+</WRAP>
+The Income Tax Department issues around **6-7 lakh new TANs every year** (CBDT Annual Report 2023-24). The bulk are property buyers, small employers, and rent payers crossing the ₹50,000-per-month threshold under §194-IB. The application is simple — but the wrong "type of deductor" classification at Step 4 derails about 1 in 5 applications.
+===== What TAN is — and who absolutely needs it =====
+A **TAN (Tax Deduction Account Number)** is a 10-character alphanumeric identifier issued by the Income Tax Department under **§203A of the Income Tax Act, 1961**. Format: 4 letters (city + first letter of name) + 5 digits + 1 letter — e.g., **DELS12345A** for a Delhi-based individual whose surname starts with S.
+It is mandatory to **quote TAN** in:
+  * Every TDS challan (ITNS 281) when depositing TDS to the government.
+  * Every quarterly TDS return (Form 24Q for salary, Form 26Q for non-salary, Form 27Q for non-residents, Form 27EQ for TCS).
+  * Every TDS certificate issued (Form 16 for salary, Form 16A for non-salary).
+  * Every correspondence with the Income Tax Department on TDS matters.
+**Who must obtain TAN:**
+  * **Employer** paying salary above the basic exemption limit (₹2.5L old regime / ₹3L new regime) under **§192**.
+  * **Bank / company** paying interest, dividend, or commission above the threshold under **§194 / 194A / 194H**.
+  * **Buyer of immovable property** ≥ ₹50 lakh under **§194-IA** (though a simplified PAN-based flow exists via Form 26QB — TAN strictly not required for one-off individual buyers).
+  * **Tenant** paying rent above **₹50,000/month** to a resident landlord under **§194-IB** (PAN-based, no TAN strictly needed for individuals).
+  * **Anyone paying contractor** above ₹30,000 single payment / ₹1 lakh aggregate under **§194C**.
+  * **Anyone paying professional fees** above ₹30,000 under **§194J**.
+  * **Anyone paying rent** to landlord above ₹2.4 lakh/year under **§194-I** (not 194-IB).
+  * **E-commerce operator** under **§194-O**.
+  * **Government deductor** (always).
+**Who does NOT need TAN:**
+  * **Individual** doing one-off TDS on property (≤₹50 lakh — no TDS at all; or > ₹50L use PAN via 26QB).
+  * **Individual tenant** paying rent ≤ ₹50,000/month — no TDS required at all.
+  * **Individual tenant** paying rent > ₹50,000/month — TDS @5% but via PAN-based Form 26QC (no TAN).
+  * Any person whose payments do not cross the §194-* thresholds.
+**Penalty for not having TAN when required:** ₹10,000 under **§272BB**. Penalty for quoting wrong TAN: ₹10,000 each instance.
+The legal anchor is **Income Tax Act 1961 §203A** (TAN mandatory), **§200/§201** (deduction + deposit obligations), **§272BB** (penalty), read with **Form 49B** (the application), **Income Tax Rules 1962 Rule 114A** (manner of allotment), and CBDT Notifications.
+===== Step-by-step process =====
+==== Step 1 — Confirm you actually need TAN (vs PAN-only flows) ====
+  * **One-off property buyer** (₹50L+): use Form 26QB with **PAN**, no TAN required.
+  * **Individual paying rent > ₹50k/month**: use Form 26QC with **PAN**, no TAN required.
+  * **Anyone making frequent / business TDS** (employer, contractor, professional, agent): TAN is **mandatory**.
+If in doubt, getting TAN proactively is safer — it is free for life, no renewal, no maintenance fee.
+==== Step 2 — Choose the application platform ====
+Two authorised intermediaries:
+  * **NSDL Protean** (formerly NSDL e-Gov): https://tin-nsdl.com → "TAN" → "New TAN Application" → Form 49B.
+  * **UTIITSL**: https://www.utiitsl.com → "TAN Application".
+Both charge the same ₹65 (₹55 application + ₹10 GST). Functionally identical. Most users go with NSDL Protean (older, more known).
+==== Step 3 — Fill Form 49B online ====
+The form has 4 main blocks:
+  * **Part A — Personal/Entity details:**
+    * Name (must match PAN; for entities, the registered legal name).
+    * **Category of deductor** — pick carefully: Central Govt, State Govt, Statutory Body, Autonomous Body, Local Authority, Company, Branch / Division of Company, Individual / HUF, Branch of Individual, Firm / AOP / BOI / AJP, Branch of Firm, Trust.
+    * Father's name (for individuals).
+    * Date of incorporation / formation / DOB.
+    * **PAN** (mandatory; will be linked to TAN).
+  * **Part B — Address details:**
+    * Office address with PIN, state, district.
+    * Telephone with STD code, email.
+  * **Part C — Nationality / responsibility:**
+    * Nationality (India for Indian residents).
+    * Person responsible for making payment (for entities — name + designation + address).
+  * **Part D — Source / payment details:**
+    * Mode of payment (online preferred — UPI, debit card, net banking).
+    * AO Code (auto-fetched if you click "AO Search" — pick by city + ward).
+==== Step 4 — Pay the ₹65 fee ====
+  * Online via UPI / debit card / credit card / net banking.
+  * On successful payment, you get an **acknowledgement number** (14 digits) — save it.
+==== Step 5 — Complete eKYC (or post acknowledgement) ====
+Two routes:
+  * **eKYC (Aadhaar OTP)** — only for individuals with PAN-Aadhaar linked. Bypass physical mailing entirely. TAN issued in 5-10 working days.
+  * **Physical mailing** — print acknowledgement, sign in blue ink, paste a recent photograph (for individuals), and courier within **15 days** to:
+    * **NSDL e-Governance Infrastructure Ltd, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016**.
+    * Use Speed Post / Courier with tracking. Include "APPLICATION FOR TAN — Acknowledgement No. XXXX" on the envelope.
+For companies/firms, **Digital Signature Certificate (DSC)** of the authorised signatory is now accepted as an alternative to physical signature.
+==== Step 6 — Track and receive TAN ====
+  * Track at https://tin.tin.nsdl.com/tan/StatusTrack.html → enter acknowledgement number.
+  * On allotment, **TAN is emailed** + downloadable PDF certificate.
+  * Allotment timeline:
+    * eKYC route: **5-10 working days**.
+    * Physical mailing: **7-15 working days** from receipt of documents.
+==== Step 7 — Start using TAN for TDS ====
+Once allotted:
+  * **Register** the TAN on **TRACES (https://www.tdscpc.gov.in)** — this is mandatory before you can file TDS returns or download certificates.
+  * **Deposit TDS via Challan ITNS 281** — choose Major Head 0020 (corporate) or 0021 (non-corporate), Minor Head 200 (TDS payable by deductor) or 400 (regular assessment).
+  * **File quarterly TDS return**:
+    * Form 24Q (salary) — by 31 July, 31 Oct, 31 Jan, 31 May.
+    * Form 26Q (non-salary, residents) — same dates.
+    * Form 27Q (non-residents) — same dates.
+    * Form 27EQ (TCS) — slightly different schedule.
+  * **Issue TDS certificate** within 15 days of return filing:
+    * Form 16 (salary, annual — by 15 June).
+    * Form 16A (non-salary, quarterly).
+    * Form 16B (property — within 15 days of 26QB filing).
+==== Step 8 — Update / surrender TAN ====
+  * **Address / name change**: file "Change/Correction in TAN" online at tin-nsdl.com — fee ₹65.
+  * **Surrender** (entity dissolved, TAN no longer needed): write to jurisdictional AO with Form 49B marked "Surrender" + reason. No fee.
+===== Sample fee + threshold + return table =====
+<code>
++-----------------------------------+--------------------------------------+
+| New TAN application (Form 49B)    | ₹65 (₹55 + ₹10 GST)                  |
+| - via tin-nsdl.com or utiitsl.com | TAN issued 5-15 days                 |
++-----------------------------------+--------------------------------------+
+| TAN change / correction           | ₹65 (₹55 + ₹10 GST)                  |
++-----------------------------------+--------------------------------------+
+| TAN surrender                     | NIL fee. Application to AO.          |
++-----------------------------------+--------------------------------------+
+| TDS thresholds (FY 2025-26):      |                                      |
+|   §192 salary                     | Above basic exemption (₹2.5/3 lakh)  |
+|   §194-IA property                | Property value ≥ ₹50 lakh, 1% TDS   |
+|   §194-IB rent (individual)       | Rent > ₹50,000/month, 5% TDS         |
+|   §194-I rent (business)          | Rent > ₹2,40,000/year, 10% TDS       |
+|   §194C contractor                | Single ₹30,000 / aggregate ₹1 lakh,  |
+|                                   | 1%/2% TDS                            |
+|   §194J professional              | ₹30,000/year, 10% TDS                |
+|   §194-O e-commerce               | ₹5 lakh seller turnover, 1% TDS      |
++-----------------------------------+--------------------------------------+
+| Quarterly TDS return due dates:   |                                      |
+|   Q1 (Apr-Jun)                    | 31 July                              |
+|   Q2 (Jul-Sep)                    | 31 October                           |
+|   Q3 (Oct-Dec)                    | 31 January                           |
+|   Q4 (Jan-Mar)                    | 31 May                               |
++-----------------------------------+--------------------------------------+
+| Penalty - no TAN (§272BB)         | ₹10,000                              |
+| Penalty - late TDS deposit (§201) | 1% / 1.5% per month interest         |
+| Penalty - late TDS return (§234E) | ₹200/day, capped at TDS amount       |
++-----------------------------------+--------------------------------------+
+| RTI to PIO NSDL / Income Tax      | ₹10 by IPO. BPL = free.              |
++-----------------------------------+--------------------------------------+
+</code>
+===== Common reasons your TAN application gets stuck =====
+  * **PAN not entered or wrongly entered in Form 49B** — the Income Tax Department reconciles TAN-PAN; mismatch means rejection. Use the same name spelling as on PAN.
+  * **Address proof mismatch** (entity address in Form 49B differs from MCA / GST records) — rejection possible. Carry consistent address across registrations.
+  * **Wrong category of deductor** — picking "Branch of Individual" when you're a sole proprietor with no branches results in rejection. "Individual / HUF" is usually right for proprietors.
+  * **Existing TAN already exists** — every PAN-entity combination can have **only one TAN per location**. If your firm already had one (perhaps from a predecessor), surrender it before applying for a new one.
+  * **Fee challan not credited** — UPI/net-banking failure in the middle. Wait 24 hours; if status still "payment pending", re-initiate. Don't pay twice in the same window.
+  * **Physical acknowledgement not received at NSDL within 15 days** — application lapses; you must re-apply with new fee.
+  * **Photograph / signature unclear** in the physical form — application returned for re-submission; no refund of fee.
+  * **AO code wrong** — TAN gets allotted but routed to wrong jurisdiction; correction requires "Change in TAN" application.
+===== If stuck — the escalation ladder =====
+==== Rung 1 — NSDL / UTIITSL helpdesks ====
+  * **NSDL Protean: 020-27218080 / 020-27218081** (9:30 am – 6:00 pm, Mon-Sat). Email: tininfo@protean-tinpan.com
+  * **UTIITSL: 1800-220-306** (toll-free). Email: utiitsl.gsd@utiitsl.com
+  * Quote acknowledgement number + PAN.
+==== Rung 2 — CBDT TAN Cell ====
+  * Through **NSDL** for routine status; for unresolved issues, write to:
+    * **CIT (Systems), Income Tax Department** — c/o CBDT, North Block, New Delhi-110001.
+    * Or via your **jurisdictional Assessing Officer (TDS)** if TAN is allotted but you have a dispute.
+==== Rung 3 — CPGRAMS ====
+  * https://pgportal.gov.in → "Department of Revenue" → "Income Tax (CBDT)" → sub-category "TAN / TDS related".
+  * Higher visibility — usually responded by Director (TPL) or PCIT (TDS).
+==== Rung 4 — Right to Information (RTI) ====
+NSDL Protean acts as an **agent of the Income Tax Department** for TAN allotment but is itself **not** a public authority under RTI. The PIO of the Income Tax Department, however, holds all TAN records.
+**RTI helps here when:**
+  * Your application is **older than 30 days** with no status update — RTI to PIO Income Tax (CBDT, North Block) for "current status of TAN application acknowledgement number XXX dated DD/MM/YYYY, and reasons for delay".
+  * NSDL says "documents not received" but you have **Speed Post tracking proof of delivery** — RTI to PIO NSDL **alternative**: file RTI to **PIO TDS-CPC, Vaishali, Ghaziabad** for "confirmation of receipt of TAN application physical documents for acknowledgement XXX".
+  * TAN was issued but you **never received the certificate** by email or post — RTI to PIO Income Tax for "issuance details and dispatch confirmation of TAN certificate for application XXX".
+  * You suspect **arbitrary rejection** — RTI for "noting on file proposing rejection, with name and designation of dealing officer".
+For sibling tax-ID procedures see [[:apply-pan-card-online-2026|How to apply for PAN card online — complete 2026 guide]].
+**RTI does NOT help here when:**
+  * Your application is **less than 15 days old** — give NSDL/UTIITSL the SLA window first.
+  * You filled **wrong details** in Form 49B and want NSDL to "ignore" them — only a fresh / correction application can fix data errors.
+  * You want a **TAN faster than the SLA** — RTI doesn't accelerate processing; it only fetches information / reasons.
+  * You want PAN-related queries answered — that needs a **separate RTI to UTIITSL / NSDL PAN cell** (or Income Tax) under different routes.
+  * Bank-account or fee-payment issues — those are between you and your bank; PIO doesn't intermediate.
+===== FAQs =====
+**Q. I'm a salaried employee starting a side consultancy. Do I need TAN?**\\
+Only if **you make payments** that trigger TDS — e.g., paying a designer ₹30,000+ for work, paying a virtual assistant retainer, etc. Receiving consultancy fee from a client doesn't need TAN (the **client** deducts TDS using **their** TAN). For pure receipt-side, your PAN is enough.
+**Q. I bought a property for ₹85 lakh. The seller said I don't need TAN. Is that right?**\\
+Correct — for one-off property buys ≥ ₹50 lakh, you can use the **PAN-based Form 26QB** route. TDS @ 1% via Challan-cum-statement, then download Form 16B from TRACES and give to seller. **No TAN needed**, but you still need to register on TRACES with PAN.
+**Q. Can a single proprietor have one TAN for multiple businesses?**\\
+Yes — TAN is at the proprietor (PAN) level; one TAN can cover multiple business activities under the same proprietor. For different geographic branches, you may apply for separate "Branch of Individual" TANs if AO codes differ.
+**Q. I deducted TDS but didn't have a TAN. What now?**\\
+You're in violation of §203A; penalty ₹10,000 under §272BB. Apply for TAN immediately, deposit the TDS via Challan 281 with the new TAN, and file a delayed quarterly return (₹200/day fee under §234E, capped at TDS amount). Approach your AO for waiver of §272BB — sometimes condoned for first-time genuine cases.
+**Q. My TAN was issued 5 years ago but I never used it. Can I still use it?**\\
+Yes — TAN is **lifelong**, no expiry, no renewal. Just register on **TRACES** before first use. You can also surrender it if you genuinely won't deduct TDS in the future, to avoid scrutiny notices for "TDS not filed against allotted TAN".
+**Q. Difference between TAN and PAN?**\\
+**PAN** = Permanent Account Number — **for paying tax / earning income**. Issued to anyone — individuals, companies, NRIs, foreigners holding Indian assets. **TAN** = **for deducting tax on others' income** at source. Quoted in TDS challans / returns / certificates. Both are issued by the Income Tax Department but serve opposite functions.
+**Q. Can foreigners / NRIs apply for TAN?**\\
+Yes. NRIs deducting TDS on rent paid to a resident or buying property must get TAN (or use the simplified PAN routes). Form 49B has an NRI block. Foreign companies operating in India deducting TDS must get TAN — typically applied via the company's authorised representative in India.
+**Q. The TAN allotted has my old surname. Can I update?**\\
+Yes — file **Change/Correction in TAN** at tin-nsdl.com → submit name-change documents (marriage certificate / Gazette notification) → ₹65 fee. New TAN certificate issued in 7-15 days; the **TAN itself doesn't change**, only the registered name.
+===== Related on RTI Wiki =====
+  * [[:apply-pan-card-online-2026|How to apply for PAN card online — complete 2026 guide]]
+  * [[:respond-income-tax-notice-2026|How to respond to an income tax notice — complete 2026 guide]]
+  * [[:rti-for-tds-it-refund-delayed|RTI for TDS / Income-Tax refund delayed — copy-ready template]]
+  * [[:rti-for-beginners|RTI in 12 simple steps — for first-time filers]]
+  * [[:helplines:start|All Indian government helplines — one master directory]]
+  * [[:forms:start|RTI forms + state-wise fee chart]]
+//Last reviewed: 26 April 2026 by RTI Wiki editorial team. TAN procedure is governed by §203A + Rule 114A; verify current portal flow on tin-nsdl.com or write to admin@bighelpers.in if you spot a stale figure.//
+{{tag>tan tax-deduction-account-number form-49b nsdl-protean utiitsl section-203a tds challan-281 form-16 form-16a traces quarterly-tds-return citizen-guide help-first 2026}}

Was this helpful? — views