How to Apply for TAN and PAN Online: Step-by-Step Guide

PAN is a 10-character alphanumeric identifier issued by the Income Tax Department to any person (individual, company, firm, etc.) who is required to file income tax returns or conduct specified financial transactions. TAN is a 10-character alphanumeric number mandatory for any person who is required to deduct or collect tax at source (TDS/TCS). In simple terms, you need PAN to pay your own taxes and file returns; you need TAN to deduct tax from payments you make to others (like salary, rent, or contractor payments) and deposit it with the government.

A business entity typically requires both. For example, a company must have PAN for its own tax filings and TAN to deduct TDS on salaries paid to employees. An individual who is a sole proprietor may need TAN only if they are required to deduct TDS on certain payments. The application processes are separate and handled through different portals.

You can apply for a new PAN online through the NSDL or UTIITSL portal. The process is largely similar on both. Here are the steps for the NSDL portal:

1. Visit the NSDL PAN portal: Go to the official NSDL e-governance website for PAN services.
2. Select application type: Choose "New PAN – Indian Citizen (Form 49A)" or "New PAN – Foreign Citizen (Form 49AA)".
3. Fill the online form: Enter your personal details (name, date of birth, father's name), contact information, and address. You will need to provide proof of identity, proof of address, and date of birth documents.
4. Submit and pay: After filling the form, you will be given a temporary acknowledgement number. Pay the application fee (currently ₹93 for Indian communication address, excluding GST, for e-PAN card; ₹101 for physical PAN card). Payment can be made via credit card, debit card, net banking, or demand draft.
5. Submit documents: After payment, you will need to send the signed acknowledgement form along with self-attested copies of your supporting documents to the NSDL office in Pune within 15 days. Alternatively, you can use the e-KYC option if you have an Aadhaar number, which allows for paperless processing.
6. Receive PAN: Once processed, your PAN card will be dispatched to your registered address. An e-PAN (digital copy) is also issued.

The entire process typically takes 15-20 working days from the receipt of documents. For Aadhaar-based e-KYC applications, the PAN is often issued within a few hours.

Applying for TAN is a simpler process and is done exclusively through the Income Tax Department's TIN-NSDL portal. Here are the steps:

1. Visit the TIN-NSDL portal: Go to the official TIN-NSDL website for TAN services.
2. Select "Apply for TAN": Choose the "New TAN" option.
3. Fill Form 49B: This is the application form for allotment of TAN. You will need to provide the applicant's name (individual, company, firm, etc.), address, contact details, and the type of deductor (e.g., company, government, individual).
4. Submit and pay: After filling the form, you will receive a temporary acknowledgement number. Pay the application fee (currently ₹65 for TAN application, plus applicable GST). Payment options are similar to PAN.
5. Submit documents: You need to send the signed acknowledgement form along with self-attested copies of the supporting documents (proof of identity, proof of address, and proof of business registration if applicable) to the NSDL office in Pune within 15 days.
6. Receive TAN: Once processed, the TAN certificate (Form 56B) will be sent to your registered address. The TAN number itself is usually communicated via email or SMS within a few days of document receipt.

The processing time for TAN is generally 15-20 working days from the receipt of complete documents.

For PAN, the required documents depend on the applicant category (individual, company, firm, etc.). For an individual, you need:

• Proof of Identity: Aadhaar card, Voter ID, Passport, Driving License, or any other government-issued photo ID.
• Proof of Address: Aadhaar card, Voter ID, Passport, Driving License, Bank Statement, or Utility Bill (not older than 3 months).
• Proof of Date of Birth: Birth certificate, Passport, Aadhaar card, or Matriculation certificate.

For TAN, the required documents are simpler:

• Proof of Identity: PAN card of the applicant (if individual) or PAN of the entity (if company/firm).
• Proof of Address: Registered office address proof (e.g., electricity bill, rent agreement, property tax receipt).
• Proof of Business Registration: Certificate of Incorporation (for companies), Partnership Deed (for firms), or any other document establishing the legal existence of the entity.

It is important to note that the documents must be self-attested and submitted along with the signed acknowledgement form.

The fees for PAN and TAN applications are set by the Income Tax Department and are subject to change. As of the latest update:

• PAN Application Fee: ₹93 (for Indian communication address, e-PAN card) or ₹101 (for physical PAN card) plus applicable GST. For foreign communication addresses, the fee is higher.
• TAN Application Fee: ₹65 plus applicable GST.

The processing time for both PAN and TAN is typically 15-20 working days from the date the complete application and supporting documents are received by the processing centre (NSDL in Pune). However, for PAN applications using Aadhaar-based e-KYC, the processing is much faster, often within a few hours to a day.

You can track the status of your application online using the temporary acknowledgement number provided at the time of submission.

If your application is rejected, you will receive a communication from the Income Tax Department stating the reason for rejection. Common reasons include incomplete documents, incorrect information, or mismatch in details. You can re-apply by filing a fresh application with the correct information and documents. There is no specific limit on the number of times you can apply.

If you make a mistake in an already submitted application (e.g., a typo in your name), you cannot correct it in the same application. You will need to apply for a correction or re-issuance of PAN or TAN. For PAN, you can use the "Changes or Correction in PAN Data" service on the NSDL portal. For TAN, you can use the "Changes or Correction in TAN Data" service on the TIN-NSDL portal. This involves filling a fresh form (Form 49A for PAN correction, Form 49B for TAN correction) and paying the applicable fee.

If you are starting a new business or are required to deduct TDS, you should apply for both PAN and TAN as soon as possible. The online processes are straightforward, but ensure you have all the correct documents ready. If you are unsure about your specific requirements or face any issues during the application, consult a qualified chartered accountant or tax professional.

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