Step-by-Step Process to Obtain TAN and PAN from CBDT

TAN (Tax Deduction and Collection Account Number) and PAN (Permanent Account Number) serve distinct purposes under the Income Tax Act, 1961. PAN is a 10-digit alphanumeric identifier required for all taxpayers—individuals, companies, and firms—for filing returns, making high-value transactions, and conducting business. TAN is a separate 10-digit alphanumeric number mandatory for any entity that is required to deduct or collect tax at source (TDS/TCS) under Sections 203A and 206CA of the Act.

You need PAN for all tax-related activities, including opening bank accounts, purchasing property above ₹10 lakh, or making cash deposits exceeding ₹50 lakh. TAN is specifically required when you deduct TDS on salaries, rent, contractor payments, or professional fees. If you are a business owner or employer, you will likely need both: PAN for your entity’s tax compliance and TAN for reporting TDS deductions. Without TAN, you cannot file TDS returns, and penalties under Section 272BB may apply for non-compliance.

The PAN application process is managed by the Income Tax Department through two authorized agencies: NSDL (National Securities Depository Limited) and UTIITSL (UTI Infrastructure Technology and Services Limited). You can apply online using Form 49A (for Indian citizens) or Form 49AA (for foreign entities). The process begins by visiting the NSDL e-Gov portal or UTIITSL website and selecting the appropriate form.

On the portal, fill in your personal details—name, date of birth, father’s name, address, and contact information. You must also provide proof of identity (Aadhaar, Voter ID, Passport), proof of address, and proof of date of birth. After submitting the form, you will receive an acknowledgment number. Pay the application fee—₹93 for Indian communication address (including GST) or ₹864 for foreign address. For Aadhaar holders, e-signature is free; otherwise, you must send a physical signed copy of the acknowledgment to the NSDL or UTIITSL office within 15 days. PAN is typically issued within 15-20 working days.

TAN application is done exclusively through Form 49B, which is available on the NSDL-TIN portal. The process is simpler than PAN because TAN is only for entities that deduct or collect tax. Start by visiting the TIN-NSDL website and clicking on "Apply for TAN." Select the appropriate category—deductor or collector—and fill in the entity details: name, address, type of deductor (company, firm, individual, etc.), and contact information.

After submitting the form, you will receive a 14-digit acknowledgment number. Pay the fee of ₹65 (plus GST) online through net banking, debit card, or credit card. Unlike PAN, TAN does not require physical document submission for online applications. The TAN certificate is issued electronically within 7-10 working days. You can download the TAN certificate from the NSDL portal using the acknowledgment number. Note that TAN is a one-time registration; you do not need to renew it unless your entity details change.

You cannot apply for TAN and PAN through a single form. They are separate registrations with distinct purposes and application forms. PAN is applied using Form 49A/49AA, while TAN requires Form 49B. However, you can apply for both simultaneously by completing both forms on the same day. Many businesses apply for PAN first because it is needed for opening bank accounts and GST registration, and then apply for TAN when they start hiring employees or making payments subject to TDS.

If you are a sole proprietor, your individual PAN serves as the business PAN, but you still need a separate TAN for TDS compliance. For companies and LLPs, the entity’s PAN is obtained first, and then TAN is applied for separately. The CBDT does not offer a combined application process, so plan accordingly. Keep in mind that TAN is mandatory before you deduct any TDS, so apply well before your first payment to contractors or employees.

For PAN application (Form 49A), you need proof of identity (Aadhaar, Passport, Voter ID, Driving License), proof of address (Aadhaar, Passport, utility bill, bank statement), and proof of date of birth (birth certificate, 10th marksheet, passport). For companies, you also need the Certificate of Incorporation. For TAN application (Form 49B), you need the entity’s PAN, proof of business registration (e.g., Certificate of Incorporation for companies, Partnership Deed for firms), and address proof of the registered office.

Document submission differs between online and offline modes. For online PAN applications with Aadhaar, you can e-sign using Aadhaar OTP—no physical documents needed. Without Aadhaar, you must send a signed copy of the acknowledgment along with self-attested documents to the NSDL or UTIITSL office. For TAN, online applications require no physical document submission; the system validates your PAN and business details electronically. Offline applications for both can be submitted at designated PAN/TAN facilitation centers with original documents for verification. Always keep copies of acknowledgment numbers and payment receipts for tracking.

If you are starting a business or becoming an employer, apply for PAN first through the NSDL or UTIITSL portal, and then apply for TAN using Form 49B. For specific queries about document requirements or application status, consult a qualified chartered accountant or tax professional who can guide you through the process and ensure compliance with CBDT regulations.

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This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.