The difference between PAN and TAN is what each one identifies. PAN (Permanent Account Number) identifies you as a taxpayer. TAN (Tax Deduction and Collection Account Number) identifies you as a person who deducts or collects tax at source. Both are 10-character codes issued by the Income Tax Department. If you deduct TDS, you need both.
- PAN identifies a taxpayer. TAN identifies a person who deducts or collects tax at source (TDS or TCS).
- PAN cannot be used in place of TAN. A deductor needs a TAN even if it holds a PAN.
- A few deductors can use PAN instead: buyers of property (194-IA), certain rent payers (194-IB), and payers under 194M and 194S.
- From 1 April 2026, TAN is applied for in Form 134 (government deductors) or Form 135 (everyone else). The fee is ₹77 including GST.
PAN vs TAN at a glance
| PAN | TAN | |
|---|---|---|
| Full form | Permanent Account Number | Tax Deduction and Collection Account Number |
| What it identifies | A taxpayer | A person who deducts or collects tax at source |
| Who needs it | Anyone the Income-tax Act asks to have one, to file returns and quote it in transactions | Every person who deducts TDS or collects TCS, except the cases below |
| Format | 10 characters, letters and numbers | 10 characters: 4 letters, 5 numbers, 1 letter |
| Where you quote it | Your return, and the transactions where the law asks for PAN | TDS and TCS challans, TDS and TCS statements (returns) and certificates |
| Law (1961 Act) | Section 139A | Section 203A |
| Law (2025 Act, from 1 April 2026) | Not covered in this guide | Section 397 |
| How to apply (from 1 April 2026) | See our PAN application guide | Form 134 (government) or Form 135 (others), fee ₹77 including GST |
What is PAN?
PAN (Permanent Account Number) is a 10-character code of letters and numbers that the Income Tax Department gives to a taxpayer. It comes from section 139A of the Income-tax Act, 1961. You quote it on your income tax return and in the transactions where the law asks for it. To apply, see our PAN application guide.
What is TAN?
TAN (Tax Deduction and Collection Account Number) is a 10-character code for people who deduct tax at source (TDS) or collect tax at source (TCS). The first four characters are letters, the next five are numbers and the last is a letter.
Every person who deducts or collects tax at source must apply for a TAN and quote it in TDS and TCS challans, statements and certificates. This is section 203A of the Income-tax Act, 1961, and section 397 of the Income-tax Act, 2025 from 1 April 2026. If you pay salaries, rent or contractor fees and must deduct TDS, you need a TAN to deposit that tax and to file your TDS returns.
Do you need both PAN and TAN?
Yes, if you deduct or collect tax at source. The Income Tax Department's FAQ says: “PAN should never be quoted in the field where TAN is required to be quoted.” A business uses its PAN as a taxpayer and its TAN as a deductor.
Who can use PAN instead of TAN. Under the 1961 Act, a person who deducts TDS only under these sections can quote PAN in place of TAN:
| Section (1961 Act) | Payment |
|---|---|
| 194-IA | Buying immovable property (other than rural agricultural land) |
| 194-IB | Rent |
| 194M | Certain payments by individuals and HUFs to contractors and professionals |
| 194S | Transfer of a virtual digital asset |
From 1 April 2026, section 397(1)(c) of the 2025 Act keeps an exemption for some deductors, listed by entries in the table of section 393, and for anyone the Central Government notifies. Our reading is that these entries cover the same kinds of payment. Check with us before relying on it for a payment made from April 2026.
Buying a property? See TDS on property purchase for the 1% TDS and Form 26QB.
Is PAN mandatory for TAN?
Yes, for every applicant except government deductors. The Income Tax Department's FAQ on Forms 134 and 135 says PAN is mandatory for every category other than government deductors. Government deductors apply in Form 134 and do not need a PAN for it.
How to apply for a TAN in 2026
From 1 April 2026, TAN applications use the new forms under the Income-tax Rules, 2026:
- Form 134: for government deductors.
- Form 135: for everyone else (companies, firms, LLPs, individuals and HUFs that deduct TDS).
You can apply online through Protean or the MCA portal, or offline at an authorised PAN centre. The fee is ₹77 including GST. Applications made before 1 April 2026 used Form 49B, and some official pages still mention it.
New companies can apply for TAN along with incorporation on the MCA portal.
Can you find a TAN from a PAN?
Not with the official tool. The e-filing portal's Know TAN Details service searches by the deductor's name or by TAN, not by PAN. You do not need to log in.
- On incometax.gov.in, open Know TAN Details.
- Choose Name or TAN, pick the deductor's state and enter the name or TAN.
- Enter your mobile number and the 6-digit OTP sent to it.
- The result shows the deductor's basic details and its Assessing Officer details.
To get your employer's or tenant's TAN, the simplest route is to ask them for it.
What if you deduct TDS without a TAN?
Under section 272BB of the Income-tax Act, 1961, failing to apply for a TAN, or quoting a wrong TAN, can lead to a penalty of ₹10,000. The 2025 Act has its own penalty section, which this guide has not checked.
Frequently asked questions
What is the difference between PAN and TAN?
PAN identifies a taxpayer. TAN identifies a person who deducts or collects tax at source. A business that deducts TDS uses its PAN as a taxpayer and its TAN as a deductor.
What is the full form of PAN and TAN?
PAN is Permanent Account Number. TAN is Tax Deduction and Collection Account Number. Some official pages shorten TAN to Tax Deduction Account Number.
Is TAN and PAN the same?
No. They are two different numbers for two different jobs. Both have 10 characters, but you cannot use one in place of the other.
Can we quote PAN in place of TAN?
No. The Income Tax Department says PAN should never be quoted where TAN is required. The exceptions are deductors under sections 194-IA, 194-IB, 194M and 194S of the 1961 Act, who can use PAN.
Is PAN mandatory for TAN?
Yes, for everyone except government deductors. A non-government applicant needs a PAN to apply in Form 135.
What is TDS and TAN?
TDS (tax deducted at source) is tax a payer cuts from certain payments and deposits with the government. TAN is the number the payer quotes when depositing that tax and filing TDS returns.
Who needs a TAN?
Every person who must deduct TDS or collect TCS, whatever the size of the business, except the few deductors who can use PAN.
Does a small proprietor deducting TDS need a TAN?
Yes. If you must deduct TDS, you need a TAN. Size does not change this.
Do I need a TAN to deduct TDS when I buy a property?
No. A buyer deducting TDS under section 194-IA uses PAN, files Form 26QB and does not need a TAN.
How do I apply for a TAN in 2026?
From 1 April 2026, apply in Form 135 (or Form 134 for government deductors), online through Protean or the MCA portal, or at an authorised PAN centre.
What is the TAN application fee?
₹77 including GST, as stated in the Income Tax Department's FAQ on Forms 134 and 135.
How can I find a TAN number?
Use Know TAN Details on the e-filing portal. Search by the deductor's name or TAN and state, then verify with an OTP on your mobile. No login is needed.
Can I search TAN by PAN?
Not on the official tool. Know TAN Details searches by name or TAN only.
What is the penalty for not having a TAN?
₹10,000 under section 272BB of the 1961 Act, for failing to apply for a TAN or quoting a wrong one.
Hinglish mein sawaal
PAN aur TAN mein kya fark hai?
PAN taxpayer ki pehchaan hai. TAN us vyakti ki pehchaan hai jo TDS kaatta ya TCS collect karta hai. TDS kaatne wale ko dono chahiye.
Kya TAN ke liye PAN zaroori hai?
Haan. Government deductor ko chhodkar sabko TAN (Form 135) ke liye PAN chahiye.
Last reviewed: 9 October 2026
FilingSetu is the brand of ANR Consultancy, a partnership firm.
GSTIN: 07ACOFA0324K1ZG
This page explains the law as it stands on the review date. It is not advice on your specific case.
Need help with TDS returns? See our TDS return filing service.
