TAN Application: Frequently Asked Questions

Introduction

TAN, or Tax Deduction and Collection Account Number, is an important identification number for persons responsible for deducting tax at source or collecting tax at source in India. From 1 April 2026, TAN-related compliance is governed by the Income-tax Act, 2025 and the Income-tax Rules, 2026.

Businesses, employers, government entities and other persons responsible for TDS or TCS should understand the updated TAN application requirements, including the newly prescribed forms. These FAQs on TAN Application help explain who needs TAN, why it is required and which form should now be used.

What Is TAN and Why Is It Required?

TAN stands for Tax Deduction and Collection Account Number. It is a 10-character alphanumeric number issued by the Income Tax Department to persons responsible for deducting tax at source or collecting tax at source.

TAN is generally required to be quoted in TDS and TCS statements, relevant tax-payment challans, certificates and other prescribed communications with the Income Tax Department. Businesses should also ensure that their TAN details are correct, as explained in Ebizfiling’s guide on TAN verification in TDS compliance.

Under the Income-tax Act, 2025, TAN continues to serve as the primary identification number for deductors and collectors. A person who already has a TAN does not need to obtain a separate TAN merely for TCS purposes.

Who Needs to Apply for TAN in India?

Any person who is responsible for deducting tax at source or collecting tax at source is generally required to obtain TAN unless a specific exception applies.

This can include companies, firms, employers, government entities, local authorities and other persons who become liable to deduct or collect tax.

Under the Income-tax Rules, 2026, the TAN application forms have changed:

• Form No. 134 is used by a Government entity.
• Form No. 135 is used by a person other than a Government entity.

The application should generally be made before tax is deducted or collected. If TAN was not obtained beforehand, the application should be made within 30 days from the end of the month in which tax was deducted or collected.

Businesses should also be aware that the TDS and TCS reporting framework has changed from 1 April 2026. You can read Ebizfiling’s detailed guide on new TDS and TCS forms under the Income-tax Act, 2025 for the updated form mapping and reporting requirements.

FAQs on TAN Application

1. Can the same PAN have more than one TAN for different branches?

Yes, more than one TAN may be associated with the same PAN where separate branches or divisions independently handle their TDS or TCS responsibilities. Each TAN should correspond to the relevant deductor unit and should be used consistently for its tax deductions, payments, statements, and certificates. Businesses should not obtain multiple TANs merely for convenience when the same deductor unit is involved.

2. What should a business do if two TANs are allotted accidentally?

If more than one TAN has accidentally been allotted to the same deductor or collector, the duplicate TAN should not continue to be used. The business should identify the TAN under which its regular TDS or TCS compliance is being carried out and follow the prescribed procedure for surrender or cancellation of the duplicate. Before doing so, it should also check whether any payments or statements have already been filed using the duplicate TAN.

3. Is a fresh TAN required after converting an LLP into a company?

It may be required because conversion can result in a change in the legal and tax identity of the deductor. If the converted company receives a different PAN or is treated as a different person for tax purposes, the existing TAN should not simply be assumed to continue. The entity should verify its post-conversion PAN and legal status before deciding whether a fresh TAN application is necessary.

4. What happens to TAN when a company changes its legal name?

A company generally does not need a new TAN merely because its name changes, provided the legal entity and PAN remain the same. However, the TAN records should be corrected so that the company’s updated name matches its PAN, MCA, and other relevant records. Maintaining consistent details helps prevent mismatches in subsequent TDS or TCS compliance.

5. Does a merger or amalgamation affect an existing TAN?

Yes, a merger or amalgamation can affect how existing TANs are used because one or more entities may cease to exist after the restructuring. The surviving entity should determine which TAN applies to future TDS or TCS transactions, while the TAN of an entity that has ceased to exist may need to be surrendered after pending compliance is completed. Historical transactions should continue to be reconciled against the TAN under which they were originally reported.

6. Can an inactive TAN be used again after several years?

An old TAN should first be verified before it is used again. The deductor should check whether the TAN remains valid and whether details such as the legal name, PAN, address, and deductor information are still correct. If any information has changed, the relevant correction should be completed before restarting TDS or TCS compliance under that TAN.

7. Is TAN correction required when the registered office address changes?

Yes. If the registered office address changes within the same TAN jurisdiction, the existing TAN can generally continue, but the address details should be updated through the applicable TAN correction process. However, if the address changes from one TAN jurisdiction to another, a fresh TAN may be required. In such cases, the old TAN should generally be surrendered only after the new TAN is allotted and pending TDS or TCS compliances are completed.

8. What happens if PAN details do not match the TAN records?

A mismatch between PAN and TAN records can cause validation or reconciliation issues during TDS or TCS compliance. The business should compare the legal name, PAN, entity details, and other information appearing in both records to identify the source of the mismatch. The incorrect record should then be corrected rather than applying for another TAN simply to overcome the error.

9. Does a change in authorized signatory require a new TAN?

No, a new TAN is generally not required simply because the authorized signatory or person responsible for tax compliance changes. TAN is allotted to the deductor or collector and not personally to the employee, director, partner, or officer who handles the filing. However, details of the responsible or authorized person should be updated wherever the applicable TAN or tax records require such information.

10. Can one TAN be used by multiple business units of the same company?

A company operating through a centralized TDS or TCS function may use one TAN for transactions handled by that deductor unit. Where branches or divisions independently deduct tax and maintain separate TDS or TCS compliance, separate TANs may be appropriate. The company should maintain consistency because payments, statements, certificates, and corrections need to be mapped to the correct TAN.

11. What should an applicant do if Form No. 135 fails PAN or entity validation?

The applicant should first compare the information entered in Form No. 135 with the relevant official records. Details such as PAN, legal name, date of incorporation or formation, CIN, LLP registration number, applicant category, and other prescribed particulars should be entered consistently. If the underlying PAN or registration record itself contains an error, that record may need correction before the TAN application can be successfully processed.

12. Can a TAN be surrendered when a business permanently stops deducting or collecting tax?

A TAN that is genuinely no longer required may need to be surrendered or cancelled through the applicable procedure. However, the business should first complete pending TDS or TCS payments, statements, corrections, certificates, and reconciliation connected with that TAN. Surrendering it prematurely can make it more difficult to resolve historical compliance issues.

13. What happens to TAN when a proprietorship is converted into a partnership or company?

The TAN should not automatically be carried over simply because the business activity remains the same. A proprietorship, partnership, and company can have different legal and tax identities, and the newly formed entity may have its own PAN. Where the deductor itself changes, the new entity should determine whether it must obtain a fresh TAN, while the old entity should complete outstanding compliance connected with its existing TAN.

14. Can a TAN allotted before 1 April 2026 continue under the Income-tax Act, 2025?

Yes. An existing valid TAN does not become invalid merely because the Income-tax Act, 2025 and the Income-tax Rules, 2026 became applicable from 1 April 2026. The introduction of the new TAN application forms does not, by itself, require existing deductors or collectors to obtain another TAN. A fresh TAN should be considered only when the circumstances of the entity or deductor actually require one.

15. What should a deductor verify before surrendering or replacing an existing TAN?

Before surrendering an existing TAN, the deductor should review pending TDS or TCS statements, outstanding payments, correction statements, certificates, challan mapping, defaults, and other unresolved compliance. Historical transactions should also remain traceable to the TAN under which they were originally reported. Completing these checks helps prevent future reconciliation problems after the TAN is surrendered or becomes inactive.

TAN Application Support Made Easier with Ebizfiling

Ebizfiling helps businesses and other eligible applicants manage TAN applications under the updated 2026 framework. The support includes identifying the correct applicant category, selecting the applicable form, checking PAN and entity details, preparing the required information, and reducing errors that may delay processing.

Ebizfiling can also assist with cases involving duplicate TANs, changes in business details, branch-level requirements, and correction of existing TAN records. Applicants who need end-to-end support can use Ebizfiling’s TAN Application service for filing assistance and related guidance. Businesses can also connect TAN compliance with their wider TDS obligations for better record management and reporting.

Need Help with TAN Application? Ebizfiling Can Assist

Conclusion

TAN remains an important part of TDS and TCS compliance under the Income-tax Act, 2025. From 1 April 2026, applicants should follow the updated Income-tax Rules, 2026 and use the applicable new TAN application form.

Government entities should use Form No. 134, while other applicants should generally use Form No. 135. Reviewing the latest FAQs on TAN Application and confirming the applicable form before filing can help avoid errors and ensure proper tax compliance.