After Applying for TAN and PAN: Next Steps and Compliance

After you submit your application for TAN (Tax Deduction and Collection Account Number) or PAN (Permanent Account Number), the first step is to verify the application. For PAN applications submitted online through the NSDL or UTIITSL portal, you must complete the verification process within 15 days. For TAN applications, verification is typically done through the same portal where you applied.

If you applied using a digital signature, verification is automatic. If you applied without a digital signature, you must print the acknowledgement form, sign it, and send it to the relevant processing centre. For PAN, the address is NSDL e-Governance Infrastructure Limited or UTIITSL, depending on where you applied. For TAN, the acknowledgement must be sent to the Income Tax Department's TIN Facilitation Centre.

Failure to complete verification within the stipulated time will result in the application being rejected. You will then need to reapply and pay the application fee again. Keep a copy of the acknowledgement number for tracking purposes.

You can track the status of your PAN application online through the NSDL portal (https://www.tin-nsdl.com) or UTIITSL portal (https://www.utiitsl.com). Enter your 15-digit acknowledgement number to check the current status. For TAN applications, tracking is available on the TIN-NSDL portal using the acknowledgement number.

The typical processing time for PAN is 15-20 working days from the date of receipt of the completed application. For TAN, it is usually 7-10 working days. If the status shows "Under Process," your application is being verified. If it shows "Dispatched," the certificate has been sent to your registered address.

If the status shows "Rejected," the portal will display the reason. Common reasons include incomplete information, mismatched documents, or failure to verify within the time limit. You can reapply after correcting the issues.

Once your PAN application is approved, you will receive a PAN card in physical form at your registered address. The PAN card contains your 10-digit alphanumeric PAN, your photograph, signature, and date of birth. You will also receive an e-PAN via email if you provided an email address during application.

For TAN, you will receive a TAN certificate (Form 56B) containing your 10-digit alphanumeric TAN. This certificate is issued by the Income Tax Department and serves as proof of registration. The certificate includes your name, address, and the TAN number.

Both documents are sent through speed post or registered post. If you do not receive them within 30 days, you can request a reprint through the respective portal. For PAN, you can also download an e-PAN from the Income Tax e-filing portal once your PAN is allotted.

After receiving your PAN, you must quote it in all tax-related documents, including income tax returns, tax payment challans, and correspondence with the Income Tax Department. PAN is mandatory for filing income tax returns, opening bank accounts, and conducting high-value transactions.

For TAN holders, the primary compliance obligation is to deduct tax at source (TDS) or collect tax at source (TCS) as applicable under the Income Tax Act, 1961. You must:

• Deduct TDS at the prescribed rates on payments such as salaries, rent, professional fees, and contract payments
• Deposit the deducted tax to the government by the 7th of the following month (for most TDS)
• File quarterly TDS returns (Form 24Q, 26Q, 27Q, etc.) within the due dates
• Issue TDS certificates (Form 16 for salary, Form 16A for non-salary) to deductees

Failure to comply with TDS obligations can result in penalties, including interest under Section 201(1A) and disallowance of expenses under Section 40(a)(ia).

If your business name, address, or other details change, you must update your PAN and TAN records. For PAN, you can apply for a correction or change through the NSDL or UTIITSL portal using Form 49A (for individuals) or Form 49AA (for non-individuals). The fee for PAN correction is currently ₹110 (plus applicable taxes) for Indian addresses.

For TAN, changes can be made by submitting Form 49B to the TIN Facilitation Centre. You must provide supporting documents such as the new certificate of incorporation, partnership deed, or address proof. The processing time for TAN changes is typically 7-10 working days.

It is important to keep your PAN and TAN details updated because incorrect details can lead to mismatches in tax returns, TDS credits, and other compliance filings. You should also update your PAN and TAN with banks, vendors, and other stakeholders after any change.

If you have applied for TAN or PAN and are unsure about the verification process or compliance requirements, consult a qualified chartered accountant or tax professional. They can guide you through the application tracking, document receipt, and ongoing TDS/TCS compliance obligations specific to your business structure and transactions.

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