TAN vs PAN: What is Tax Deduction Account Number? Know how to apply

Permanent Account Number or PAN Card is one of the most important identification documents about which almost everyone is aware of. But are you aware about TAN? People often confuse between PAN and TAN.

​TAN or Tax Deduction and Collection Account Number is a unique ten-digit alpha-numeric number required to be obtained by all persons who are responsible for deducting or collecting tax.

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As per the information provided by the Income Tax Department, under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS statements.

To facilitate deductors find their new TAN, ITD has now introduced a search facility on their website (www.incometaxindia.gov.in). Through this facility, deductors can search on name and old TAN to find the new TAN.

Difference between PAN and TAN?

​​​​​​​P​AN stands for Permanent Account Number and TAN stands for Tax Deduction Account Number.

TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.

PAN cannot be used for TAN, hence, the deductor has to obtain TAN, even if he holds PAN.

However, in case of TDS on purchase of land and building (as per section 194-​IA) the deductor is not required to obtain TAN and can use PAN for remitting the TDS.​

Further in case of TDS on rent (as per section 194-​IB) and TDS on payment of certain sums by Individuals of HUFs (as per section 194M), the deductor can use PAN instead of TAN for remiiting TDS.

How to apply for TAN?

​​​​​​​There are two modes for applying for TAN that is online mode and offline mode.

OFFLINE: An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN Facilitation Centres (TIN-FC). Addresses of TIN-FCs are available at NSDL-TIN website (https://www.tin-nsdl.com).

In case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. SPICe (INC-32) specified under sub-section (1) of section 7 of the said Act for incorporation of the company.​

ONLINE: Online application for TAN can be made from the NSDL-TIN website. Addresses of the TIN FC are available at www.incometaxindia.gov.in or https://www.tin-nsdl.com.