{"id":7281,"date":"2025-07-02T06:29:18","date_gmt":"2025-07-02T06:29:18","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7281"},"modified":"2025-07-02T06:29:21","modified_gmt":"2025-07-02T06:29:21","slug":"what-is-tan","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/what-is-tan\/","title":{"rendered":"What is TAN?"},"content":{"rendered":"<p>TAN stands for <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> Deduction and Collection Account Number<\/strong>. It&rsquo;s a unique 10-character <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/alpha\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>alpha<\/a>numeric code issued by the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Department of India. Entities responsible for deducting or collecting tax at source (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>TDS<\/a>\/TCS) must obtain a TAN. <\/p>\n\n\n\n<h3 id=\"structure-of-tan\" class=\"wp-block-heading\">Structure of TAN<\/h3>\n\n\n\n<p>A TAN comprises:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>First 4 characters<\/strong>: Alphabets (first three denote the jurisdiction code, and the fourth is the initial of the name).<\/li>\n\n\n\n<li><strong>Next 5 characters<\/strong>: Numeric digits.<\/li>\n\n\n\n<li><strong>Last character<\/strong>: Alphabet.<\/li>\n<\/ul>\n\n\n\n<p>For example, a TAN might look like <strong>DELX12345A<\/strong>, where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>DEL<\/strong>: Jurisdiction code (e.g., Delhi).<\/li>\n\n\n\n<li><strong>X<\/strong>: First letter of the name.<\/li>\n\n\n\n<li><strong>12345<\/strong>: Unique number.<\/li>\n\n\n\n<li><strong>A<\/strong>: Check alphabet.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"who-needs-a-tan\" class=\"wp-block-heading\">Who Needs a TAN?<\/h3>\n\n\n\n<p>Any person or entity responsible for deducting or collecting tax at source under the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a> must obtain a TAN. This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Companies.<\/li>\n\n\n\n<li>Firms.<\/li>\n\n\n\n<li>Individuals (proprietors) deducting TDS.<\/li>\n\n\n\n<li>Government departments.<\/li>\n\n\n\n<li>Trusts and societies.<\/li>\n<\/ul>\n\n\n\n<p><em>Note<\/em>: Individuals deducting TDS under sections 194-IA, 194-IB, or 194M can use their PAN instead of TAN. <\/p>\n\n\n\n<h3 id=\"how-to-apply-for-tan\" class=\"wp-block-heading\">How to Apply for TAN<\/h3>\n\n\n\n<p>You can apply for TAN either online or offline.<\/p>\n\n\n\n<h4 id=\"online-application\" class=\"wp-block-heading\">Online Application<\/h4>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Visit the <a href=\"https:\/\/tin.tin.nsdl.com\/tan\/\" rel=\"nofollow noopener\" target=\"_blank\"><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nsdl\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NSDL<\/a>-TIN website<\/a>.<\/li>\n\n\n\n<li>Select &#x201C;Apply Online&#x201D; and choose the appropriate category.<\/li>\n\n\n\n<li>Fill in <strong>Form 49B<\/strong> with the required details.<\/li>\n\n\n\n<li>Submit the form and note the 14-digit acknowledgment number.<\/li>\n\n\n\n<li>Print and sign the acknowledgment.<\/li>\n\n\n\n<li>Send the acknowledgment to:<\/li>\n<\/ol>\n\n\n\n<p><em>Protean eGov Technologies Limited<\/em><br>4th Floor, Sapphire Chambers,<br>Baner Road, Baner, Pune &#x2013; 411045<\/p>\n\n\n\n<p><em>Note<\/em>: If applying with a Digital Signature Certificate (DSC), there&#x2019;s no need to send a physical acknowledgment. <\/p>\n\n\n\n<h4 id=\"offline-application\" class=\"wp-block-heading\">Offline Application<\/h4>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Obtain <strong>Form 49B<\/strong> from a TIN-Facilitation Center (TIN-FC).<\/li>\n\n\n\n<li>Fill in the form with the necessary details.<\/li>\n\n\n\n<li>Submit the form at the TIN-FC along with the processing fee.<\/li>\n<\/ol>\n\n\n\n<h3 id=\"processing-fee\" class=\"wp-block-heading\">Processing Fee<\/h3>\n\n\n\n<p>The processing fee for TAN application is <strong>&#x20B9;65<\/strong> (&#8377;55 application charge + 18% <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/gst\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>GST<\/a>). <\/p>\n\n\n\n<h3 id=\"tan-vs-pan-key-differences\" class=\"wp-block-heading\">TAN vs PAN: Key Differences<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>TAN (Tax Deduction and Collection Account Number)<\/th><th>PAN (Permanent Account Number)<\/th><\/tr><\/thead><tbody><tr><td><strong>Purpose<\/strong><\/td><td>For deducting\/collecting tax at source (TDS\/TCS)<\/td><td>For tracking financial transactions<\/td><\/tr><tr><td><strong>Issued To<\/strong><\/td><td>Entities deducting\/collecting tax<\/td><td>Individuals and entities<\/td><\/tr><tr><td><strong>Format<\/strong><\/td><td>10-character alphanumeric<\/td><td>10-character alphanumeric<\/td><\/tr><tr><td><strong>Application Form<\/strong><\/td><td>Form 49B<\/td><td>Form 49A (Indians), Form 49AA (foreigners)<\/td><\/tr><tr><td><strong>Legal Provision<\/strong><\/td><td>Section 203A of the Income Tax Act, 1961<\/td><td>Section 139A of the Income Tax Act, 1961<\/td><\/tr><tr><td><strong>Penalty for Non-Compliance<\/strong><\/td><td>&#x20B9;10,000<\/td><td>&#x20B9;10,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"penalty-for-non-compliance\" class=\"wp-block-heading\">Penalty for Non-Compliance<\/h3>\n\n\n\n<p>Failure to apply for TAN or not quoting it in the specified documents can attract a penalty of <strong>&#x20B9;10,000<\/strong> under Section 272BB of the Income Tax Act.<\/p>\n\n\n\n<p>Understanding the distinctions between TAN and PAN is crucial for compliance with Indian tax regulations. Ensure you apply for and quote the correct identification numbers in all relevant financial documents.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TAN stands for Tax Deduction and Collection Account Number. It&#x2019;s a unique 10-character alphanumeric code issued by the Income Tax Department of India. Entities responsible for deducting or collecting tax at source (TDS\/TCS) must obtain a TAN. Structure of TAN A TAN comprises: For example, a TAN might look like DELX12345A, where: Who Needs a [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7281","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7281\/revisions"}],"predecessor-version":[{"id":7282,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7281\/revisions\/7282"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}