TAN Application in India: Process, Form 49B & Fees (2026 Guide)
Before you can deduct or collect tax at source, the law requires you to hold a TAN - quote the wrong number or skip it entirely, and TDS returns get rejected outright. This guide explains who needs a TAN, the Form 49B process, and how KanoonPe gets it issued for you with a flat all-inclusive quote.
Quick summary
- What it is: A 10-digit alphanumeric number required by anyone who deducts or collects tax at source.
- Governed by: Section 203A of the Income Tax Act, 1961.
- Mandatory if: you deduct TDS or collect TCS as an employer, business, or specified deductor.
- KanoonPe price: Flat, all-inclusive quote on a free callback · Timeline: typically 5–7 working days.
Quick facts
| Detail | Information |
|---|---|
| Governing law | Section 203A, Income Tax Act, 1961 |
| Authority / portal | Protean (formerly NSDL) e-Gov / UTIITSL, on behalf of Income Tax Department |
| Application form | Form 49B |
| Identifier issued | TAN - 10-digit alphanumeric (e.g. DELA12345B) |
| Timeline | 5–7 working days |
| KanoonPe price | Flat, all-inclusive quote - request a free callback |
| Who needs it | Any person/entity liable to deduct TDS or collect TCS |
What is TAN application?
TAN (Tax Deduction and Collection Account Number) is a mandatory 10-digit alphanumeric identifier under Section 203A of the Income Tax Act, 1961, required by every person or entity responsible for deducting tax at source (TDS) or collecting tax at source (TCS). TAN is applied for using Form 49B, processed through Protean (formerly NSDL) e-Governance or UTIITSL on behalf of the Income Tax Department.
Without a valid TAN, you cannot file TDS/TCS returns, and banks will refuse to accept TDS challans quoting an invalid or missing TAN - making it a foundational compliance step for any business with employees, vendor payments, rent, or other TDS-attracting transactions.
Who needs to apply for TAN?
- Employers deducting TDS on employee salaries under Section 192.
- Businesses making payments to contractors, professionals, or vendors that attract TDS (Sections 194C, 194J, 194H, etc.).
- Companies, LLPs, partnership firms, and proprietorships that cross TDS applicability thresholds on any payment head.
- Buyers of high-value property - note that Form 26QB (TDS on property) uses PAN instead of TAN, but other regular deductors still need TAN.
- Government departments and local authorities responsible for TDS/TCS.
- Any entity collecting TCS on specified goods/transactions under Section 206C.
Benefits of applying for TAN
- Legal requirement to deduct TDS/TCS - without TAN, TDS deposits and returns cannot be processed.
- Avoids penalty for non-quoting - failing to have or quote TAN where required attracts a penalty under Section 272BB.
- Enables timely TDS return filing (Form 24Q, 26Q, 27Q) which employees and vendors need for their own tax credit.
- One TAN for all TDS/TCS obligations of the entity - no need for separate numbers per tax section.
- Builds a clean compliance record, useful during vendor onboarding and statutory audits.
Documents required for TAN application
- Name and address of the applicant (individual/business)
- PAN of the applicant (business/proprietor/company)
- Details of the entity - proprietorship, partnership, company, LLP, trust, association, etc.
- Registered office/business address proof
- Authorised signatory details for companies/LLPs
TAN application is largely information-based - unlike PAN, most applications don't require extensive document uploads, though proof may be sought for verification.
TAN application process (step by step)
KanoonPe files this for you via Form 49B; here's what happens.
- Determine category. We confirm the correct deductor category (company, individual, firm, government, etc.) for the application.
- Fill Form 49B. Enter applicant name, address, and PAN details on the Protean/UTIITSL portal.
- Submit online. The application is filed online with the prescribed processing fee.
- Acknowledgement generated. A 14-digit acknowledgement number is issued for tracking.
- Processing by Income Tax Department. The application is verified and processed centrally.
- TAN allotment. The TAN is issued and communicated via the allotment letter/email.
Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for TAN application within one business hour.
TAN application fees in India
The government processing fee for TAN application is nominal (a small fixed fee payable to Protean/UTIITSL at the time of submission, inclusive of applicable taxes).
KanoonPe offers a flat, all-inclusive quote - Form 49B preparation, filing, government fee, and follow-up until allotment, bundled into one transparent number.
TAN application timeline
| Stage | Typical time |
|---|---|
| Form 49B preparation & filing | 1 working day |
| Government processing | 3–5 working days |
| TAN allotment & communication | 1 working day |
| Total | 5–7 working days |
Penalties for not having / not quoting TAN
- Section 272BB: penalty of ₹10,000 for failure to obtain TAN or for quoting an incorrect TAN in TDS/TCS returns, challans, or certificates.
- TDS returns rejected by the system if filed without a valid TAN, exposing the deductor to late-filing consequences separately.
- Banks refuse TDS challan payments without a valid TAN quoted, delaying statutory deposit and inviting interest under Section 201(1A).
TAN vs PAN: quick comparison
| Aspect | TAN | PAN |
|---|---|---|
| Purpose | Deducting/collecting tax at source | Identifying a taxpayer for all tax transactions |
| Format | 10-digit alphanumeric (e.g. DELA12345B) | 10-digit alphanumeric (e.g. ABCPD1234E) |
| Who needs it | Deductors/collectors of TDS/TCS | Every taxpayer - individual or entity |
| Governing section | Section 203A, Income Tax Act, 1961 | Section 139A, Income Tax Act, 1961 |
Why choose KanoonPe
- Transparent flat pricing - one all-inclusive number, no surprise add-ons.
- Filed-on-time or refund - every order ships with a written SLA.
- One accountable case owner - a single named manager owns your TAN application.
- Live status tracking - follow your acknowledgement and allotment status in real time.
Trusted by 50,000+ businesses, rated 4.7/5, with 500+ verified CAs, CS and lawyers.