TAN Registration for Foreign Owned Companies in India (2026)

Written by CA Nandini, Krystal7 Consultants. Last updated 2 October 2026.

Every person who deducts or collects tax in India needs a TAN, the 10 character Tax Deduction and Collection Account Number. From 1 Apr 2026 the law is section 397(1) of the Income Tax Act, 2025 and rule 216 of the Income Tax Rules, 2026. A foreign owned company applies in Form 135, which replaced Form 49B, through Protean for INR 77. Rule 216(4) wants the application before the first deduction. Missing TAN can cost a INR 10,000 penalty under section 468.

This page covers who needs a TAN and how a foreign owned company applies. It also covers the documents, the 2026 changes, the penalties and the TDS work that follows. INR 1,00,000 is one lakh (100,000), and INR 1,00,00,000 is one crore (10 million).

What is a TAN?

A TAN is a 10 character alphanumeric number that the Income Tax Department gives to a person who deducts or collects tax at source. The department's Form 134 and 135 FAQ calls it a unique identifier for the persons responsible for TDS or TCS. The deductor quotes it on every TDS challan, statement and certificate.

TAN stands for Tax Deduction and Collection Account Number. Protean processes TAN applications for the department. It calls TAN "a 10 digit alpha numeric number" for all persons who deduct or collect tax.

TAN is not a second PAN. The PAN identifies the company as a taxpayer. The TAN identifies the same company as a deductor. An Indian subsidiary has both: the PAN for its own return and tax payments, and the TAN for the tax it withholds from others.

One TAN covers both TDS and TCS. FAQ 5 of the department's TAN FAQ says "the TAN allotted for TDS can also be used for TCS".

Feature	PAN	TAN
What it identifies	The taxpayer	The person deducting or collecting tax
Length	10 characters	10 characters
Application form from 1 Apr 2026	Form 94 for a company registered in India, Form 96 for an entity registered outside India	Form 134 (government) or Form 135 (everyone else)
Old form	Forms 49A and 49AA	Form 49B
Used on	The company's own return and tax payments	TDS and TCS challans, Forms 138, 140, 143 and 144, Forms 130, 131 and 133
Can a company use it for TDS deposits?	Only a deductor listed in section 397(1)(c), through Form 141	Yes

Sources: section 397 of the Income Tax Act, 2025; rule 216 of the Income Tax Rules, 2026; Form 134 and 135 FAQ; form map on incometaxindia.gov.in, read 2 Oct 2026.

Does a foreign owned company need a TAN?

Yes, in practice always. An Indian subsidiary of a foreign parent pays salaries, rent, professional fees and contractor bills. Most of those payments carry TDS under sections 392 and 393. Section 397(1)(a) says "every person deducting or collecting tax shall apply for allotment" of a TAN. A company that deducts tax has no exemption.

The duty does not depend on who owns the company. A Private Limited company held 100 percent by a Delaware or Singapore parent is an Indian company. It deducts tax exactly as an Indian owned company does.

The usual first triggers for a new subsidiary are these.

1. Salary. The first payroll for Indian employees under section 392.
2. Rent. Office rent above INR 50,000 for a month under section 393(1), Table serial 2(ii), at 10 percent for land or buildings.
3. Professional fees. Fees to a Chartered Accountant, a company secretary or a lawyer above INR 50,000 in a year, under serial 6(iii), at 10 percent.
4. Payments to the foreign parent. Royalty, technical fees, interest, reimbursements with an income element and dividends under section 393(2), serial 17. No threshold applies.
5. Contractors. Any sum above INR 30,000, or INR 1,00,000 in a year, under serial 6(i), at 1 or 2 percent.

If the company is set up through SPICe+, it usually has a TAN from day one. The department's guidance note on Forms 134 and 135 says "Domestic companies, LLPs can apply through MCA". Rule 216(2) allows an application "through a common application form as notified by the Central Government". Our SPICe+ guide shows where TAN sits in Part B.

For a foreign owned company, we first check that the TAN letter exists. Then we check that someone in India can log in with it. We often find a TAN allotted at incorporation that nobody has registered on TRACES or the income tax portal.

Payment by an Indian subsidiary	Provision in the Income Tax Act, 2025	Threshold	Rate in the Act
Salary to employees	Section 392	Tax only on salary above the amount not chargeable to tax	Slab rates
Rent of land, building or furniture	Section 393(1), Table serial 2(ii)	INR 50,000 for a month or part of a month	10%
Rent of plant, machinery or equipment	Section 393(1), Table serial 2(ii)	INR 50,000 for a month or part of a month	2%
Contractor payments	Section 393(1), Table serial 6(i)	INR 30,000 per sum or INR 1,00,000 in a year	1% to an individual or HUF, 2% to others
Professional fees	Section 393(1), Table serial 6(iii)	INR 50,000 in a year	10%
Fees for technical services and call centre work	Section 393(1), Table serial 6(iii)	INR 50,000 in a year	2%
Commission or brokerage	Section 393(1), Table serial 1(ii)	INR 20,000	2%
Interest to a resident, other than on securities	Section 393(1), Table serial 5(iii)	INR 10,000	Rates in force (10% in the TDS FAQ)
Purchase of goods by a large buyer	Section 393(1), Table serial 8(ii)	Above INR 50,00,000 from one seller	0.1%
Royalty or technical fees to a foreign company	Section 393(2), Table serial 17	None	20% under the Act, or the treaty rate
Dividend to a foreign parent	Section 393(2), Table serial 17	None	20% under the Act, or the treaty rate
Any other sum chargeable to tax paid to a foreign company	Section 393(2), Table serial 17	None	35%

Sources: sections 392 and 393 of the Income Tax Act, 2025 and the department's FAQs on TDS, read 2 Oct 2026. Surcharge and cess apply on top of the rate for payments to non residents. Serial 17 itself says "rates in force". The 20 and 35 percent figures are the rates we apply for a foreign company. Check the rate in force and the treaty before each payment.

Our guide to TDS on payments to non residents covers serial 17 in detail.

Does a foreign company paying an Indian need a TAN?

It depends on what the foreign company pays and to whom. A foreign company that must deduct Indian tax needs a TAN, because section 397(1)(a) covers "every person deducting or collecting tax". The clearest case is a foreign company paying another non resident a sum chargeable to tax in India.

Section 393(2), Table serial 17, carries a note on this point. Note 3(b) extends "the obligation to deduct tax at source" under serial 17 to all persons, resident or non resident. The duty applies whether or not the non resident has a residence, a place of business or a business connection in India. It also applies without "any other presence in any manner whatsoever in India".

So a Singapore company that buys shares of an Indian Private Limited company from a UK seller must deduct tax on the capital gain. It needs a TAN to deposit that tax and file Form 144. The worked example below runs the numbers.

Payments by a foreign company to an Indian resident are less clear. The tables in section 393(1) do not carry a note like Note 3(b). Our reading is this. A foreign company with no presence in India usually does not deduct Indian TDS on payments from abroad to an Indian freelancer or subsidiary. The Indian payee then reports the income and pays its own tax.

Three cases change that answer in our practice.

1. Foreign employer with staff in India. Salary for work done in India is taxable in India. We treat a foreign employer paying such salary as an employer under section 392, so it deducts TDS and needs a TAN. Many foreign companies avoid this by hiring through an Indian subsidiary or an employer of record. Our employer of record comparison weighs the two.
2. Liaison or branch office. An office of a foreign company in India pays local salaries and rent. It deducts tax on them like any Indian employer, so it applies for a TAN in its own name. Our liaison office guide covers the RBI side.
3. Project office or permanent establishment. A foreign contractor running a site in India pays local subcontractors and staff. It deducts tax on those payments.

Form 135 adds a practical hurdle. Protean's instructions say the "Address must be an Indian address". A foreign company with no office in India needs an Indian address it can use, such as its Indian representative's office.

Situation	Who deducts	TAN needed?	Basis
Indian subsidiary pays salary, rent or fees in India	The subsidiary	Yes	Sections 392, 393(1) and 397(1)(a)
Indian subsidiary pays royalty or dividend to its foreign parent	The subsidiary	Yes	Sections 393(2) serial 17 and 397(1)(a)
Foreign company buys Indian shares from another non resident	The foreign buyer	Yes	Section 393(2) serial 17, Note 3(b); section 397(1)(a)
Foreign company with staff working in India, no Indian entity	The foreign employer	Yes, in our reading	Sections 392 and 397(1)(a)
Liaison office or branch office of a foreign company	The office	Yes	Sections 392, 393(1) and 397(1)(a)
Foreign company pays an Indian freelancer from abroad, no Indian presence	Usually nobody	Usually no, in our reading	No note like Note 3(b) in section 393(1)
Resident individual buys Indian property from a non resident, from 1 Oct 2026	The buyer	No	Section 397(1)(c)(iii); Form 141, Schedule E

Sources: sections 392, 393 and 397 of the Income Tax Act, 2025; Form 135 instructions; Notification No. 121/2026, read 2 Oct 2026.

Who is exempt from getting a TAN?

Section 397(1)(c) switches off the TAN duty for four groups. Each uses its PAN and a challan cum statement instead. A company or a foreign company deducting on business payments falls in none of them.

The four groups in section 397(1)(c) are these.

1. A person who deducts under section 393(1), Table serial 2(i), 3(i) or 6(ii). Serial 2(i) is rent paid by a person other than a specified person, above INR 50,000 a month. Serial 3(i) is consideration for immovable property other than agricultural land. Serial 6(ii) is contract work, professional fees or commission paid by an individual or HUF, above INR 50,00,000.
2. A person referred to in section 393(4), Table serial 12.C(a), who deducts on the transfer of a virtual digital asset under section 393(1), serial 8(vi).
3. "A resident individual or Hindu undivided family in respect of a transaction where he is required to deduct tax on any consideration for the transfer of any immovable property under section 393(2) [Table: Sl. No. 17]".
4. "A person notified in this regard by the Central Government".

Clause (iii) is new. Before 1 Oct 2026, an Indian resident who bought a flat from a non resident had to get a TAN for one deduction. The Budget 2026 FAQs (Part IX, Q4 to Q7) set out the change. Q6 says the buyer deducts by "furnishing PAN based challan cum statement as may be notified". The department's text of section 397 marks clause (c)(iii) as effective from 1 Oct 2026. The buyer now deducts through Form 141 with a new Schedule E, added by the Income Tax (Fifth Amendment) Rules, 2026.

Group exempt from TAN	Provision	Old law equivalent	What the deductor files instead
Rent paid by an individual or HUF that is not a specified person	Section 393(1), serial 2(i)	Section 194-IB	Form 141 challan cum statement
Buyer of immovable property from a resident	Section 393(1), serial 3(i)	Section 194-IA	Form 141
Individual or HUF paying contract or professional fees above INR 50,00,000	Section 393(1), serial 6(ii)	Section 194M	Form 141
Specified person paying for a virtual digital asset	Section 393(1), serial 8(vi), with 393(4) serial 12.C(a)	Section 194S	Form 141
Resident individual or HUF buying immovable property from a non resident	Section 393(2), serial 17; section 397(1)(c)(iii)	None; TAN was needed	Form 141, Schedule E, from 1 Oct 2026
Person notified by the Central Government	Section 397(1)(c)(iv)	None	As notified

Sources: sections 393 and 397 of the Income Tax Act, 2025; section 203A of the Income Tax Act, 1961; Budget 2026 FAQs Part IX; Notification No. 121/2026; Form 141 FAQ, read 2 Oct 2026.

The exemption helps Indian families buying from NRIs. It does not help a foreign owned company. A company buying property from a non resident is not a "resident individual or Hindu undivided family", so it still needs its TAN.

What is the TAN form called under the Income Tax Act, 2025?

From 1 Apr 2026 a TAN application uses Form 134 or Form 135 under rule 216(1) of the Income Tax Rules, 2026. Form 134 is for a government entity. Form 135 is for "a person other than a Government entity". Both replaced Form 49B, which sat under rule 114A of the Income Tax Rules, 1962.

A foreign owned Private Limited company always uses Form 135. Rule 216(6) defines a government entity as a Central or State Government entity or a local authority. It excludes "any company or any statutory or autonomous body". So even a company owned by a foreign government agency files Form 135.

Point	Form 134	Form 135
Who files	Central Government, State Government and local authority entities	Everyone else: individuals, companies, LLPs, firms, trusts, statutory and autonomous bodies
Rule	Rule 216(1)(a)	Rule 216(1)(b)
Key identifier	Accounts Office Identification Number (AIN)	PAN, plus CIN for a company or the registration number for an LLP
Supporting document	Certificate from the PAO, ZAO, DTO or CDDO	Proof of identity, address and date of incorporation, as in the rule 158(8) Table
Person responsible	Name, PAN and mobile number	Name, designation, PAN and contact number
Old form	Form 49B	Form 49B

Sources: rule 216 of the Income Tax Rules, 2026; guidance note and FAQ on Forms 134 and 135; Form 135 on Protean, read 2 Oct 2026.

Protean's instructions say the "Applicant must select only one applicable category from A to G", so Form 135 has seven categories. A company picks the company category. A company applying for a separate TAN for a branch or division picks the branch or division category.

How do you apply for a TAN?

A foreign owned company applies online on the Protean TIN website in Form 135. It pays INR 77, prints the acknowledgement, signs it and sends it with its documents to Protean in Pune. Protean's form page says the papers "should reach Protean within 15 days from the date of online application". The department then allots the TAN and emails a letter.

The steps below follow Protean's online guidelines and the department's guidance note on Forms 134 and 135.

1. Choose the form. Open "Online Application for TAN (Form 134 and Form 135)" on the Protean TIN website and pick Form 135.
2. Pick the category. Select the company category, or the branch or division category for a branch TAN.
3. Enter the company details. Give the name exactly as on the certificate of incorporation, and the CIN. Protean's instructions say the CIN "must be entered exactly as allotted by MCA".
4. Enter the person responsible. Give the full name without abbreviation, the designation and the PAN. The PAN "must be valid and active".
5. Enter the Indian address. Protean's instructions say the "Address must be an Indian address", with the PIN code, post office, district and state.
6. Give the other details. Date of incorporation, the company's PAN, nationality, email, phone with country code, and the TDS Assessing Officer code.
7. Confirm and pay. Correct any validation errors, confirm, and pay INR 77 by card, net banking, demand draft or cheque.
8. Save the acknowledgement. The system issues a 14 digit acknowledgement number. Print the acknowledgement.
9. Sign and post. The authorised signatory signs the acknowledgement. Send the acknowledgement, the document copies and any demand draft to Protean eGov Technologies Limited, 4th Floor, Sapphire Chambers, Baner Road, Baner, Pune 411045. Write "APPLICATION FOR TAN" and the acknowledgement number on the envelope.
10. Track and receive. Track the status with the acknowledgement number after three days. The department's FAQ 11 says the department emails a letter to the registered address once it allots the TAN.

Offline filing still exists. FAQ 6 lists two modes: "Offline at authorized PAN Centers" and "Online through Protean or MCA portal". The department's FAQ 9 adds that after "final submission and generation of acknowledgement, edits are not permitted". Check every field before you confirm.

Stage	What happens	Time limit or service level	Source
Online Form 135	Data entry, validation, payment	None set	Protean form page
Acknowledgement and documents reach Protean	Signed acknowledgement and proofs	Within 15 days of the online application	Protean form page
Status check	Track with the 14 digit number	Available after three days	Protean TAN overview
Allotment	Department allots TAN; letter by email	Not published	Form 134 and 135 FAQ 11
Rule 216 deadline	Application before the first deduction	Before deduction, or within 30 days after the month of deduction	Rule 216(4)

Sources: Protean TAN application page and instructions; Protean TAN overview; rule 216, read 2 Oct 2026.

Protean does not publish a turnaround time for allotment. We plan on the TAN arriving after the documents reach Pune and before the first payroll, and we start early for that reason.

What documents does a company need for Form 135?

Rule 216(5) requires proof of identity, address and date of incorporation. It borrows the list from column D of the Table under rule 158(8), the PAN rule. For a company registered in India, the Table asks for a "Copy of Certificate of Registration issued in India by the Registrar of Companies". The corporate identity number allotted by the Registrar is the alternative. The person responsible also needs a valid PAN.

Item	Why it is needed	What we use for a foreign owned company
Certificate of incorporation	Proof of identity and date of incorporation under rule 158(8)	The certificate issued with SPICe+, showing the CIN and PAN
Company PAN	Form 135 FAQ Q4: PAN is mandatory for non government applicants	The PAN printed on the certificate of incorporation
CIN	Form 135 FAQ Q5: CIN is mandatory for companies	From the MCA master data
Proof of the Indian address	Rule 216(5); Protean's instructions require an Indian address	Our practice: the registered office proof filed with MCA, with the certificate of incorporation
PAN of the person responsible	Form 135; Protean says it "must be valid and active"	A director or officer in India with a PAN; a foreign director can first get one in Form 95
Signed acknowledgement	Protean processes only "on receipt of duly signed acknowledgment"	Signed by the authorised signatory
Board resolution naming the person responsible	Our practice	A short resolution naming the signatory and the person responsible for TDS
Demand draft	Only if paying by draft	Payable to "Protean - TIN"

Sources: rules 158 and 216 of the Income Tax Rules, 2026; Form 134 and 135 FAQ; Protean instructions and form page, read 2 Oct 2026.

Old guidance still floats around. Protean's older FAQ page still says "No documents are required to be submitted along with the application for allotment of TAN". That was the Form 49B position. Rule 216(5) changed it from 1 Apr 2026, and Protean's own Form 135 instructions now list the proofs.

The person responsible is a frequent gap for a foreign owned company. All the directors may live abroad and hold no PAN. We usually name the Indian finance lead or a resident director. Where only foreign directors exist, one of them applies for a PAN first. Our PAN guide for foreign companies covers the PAN forms.

When must a company apply for a TAN?

Rule 216(4) sets two dates. The company applies "prior to the deduction or collection of tax". Where it has not done so, it applies "within thirty days from the end of the month in which the tax was deducted or collected". The first is the rule. The second is a fallback, not a choice.

The old rule 114A of the 1962 Rules gave only the fallback: "within one month from the end of the month in which the tax was deducted or collected". The 2026 rule puts the before deduction date first.

The fallback does not help much in practice. Rule 218(2) wants TDS deposited by the 7th of the next month, and 30 April for tax deducted in March. A challan for TDS needs a TAN. A company that deducts in July without a TAN cannot deposit by 7 August. Interest under section 398 then runs at 1.5 percent for every month or part of a month.

Event	Date for tax deducted on 20 Jul 2026	Provision
Latest TAN application (fallback)	30 Aug 2026, 30 days from the end of July	Rule 216(4)(b)
TDS deposit due	7 Aug 2026	Rule 218(2)
Quarterly statement for July to September	31 Oct 2026	Rule 219
TDS certificate in Form 131	Within 15 days of the statement due date	Rule 215(1)

What is the penalty for not having a TAN?

Section 468(1) of the Income Tax Act, 2025 lets the Assessing Officer impose a penalty of INR 10,000 on a person who "fails to comply with the provisions of section 397". Section 468(2) imposes another INR 10,000 for quoting a TAN "which is false, knowing or believing it to be false". These replace sections 272BB(1) and 272BB(1A) of the 1961 Act.

The INR 10,000 is the smallest cost. A company without a TAN cannot deposit TDS or file statements, so the TDS penalties follow.

Default	Provision in the Income Tax Act, 2025	Old provision	Consequence
Not applying for a TAN, or not quoting it	Section 468(1)	Section 272BB(1)	INR 10,000
Quoting a false TAN knowingly	Section 468(2)	Section 272BB(1A)	INR 10,000
Deducting late	Section 398	Section 201(1A)	Interest at 1 percent a month or part of a month
Depositing late after deduction	Section 398	Section 201(1A)	Interest at 1.5 percent a month or part of a month
Not deducting at all	Section 448	Section 271C	Penalty equal to the tax not deducted
Filing the quarterly statement late	Section 427	Section 234E	INR 200 a day, capped at the TDS amount
Not filing the statement, or filing it wrong	Section 461	Section 271H	INR 10,000 to INR 1,00,000; no penalty if filed within one month of the due date with tax, fee and interest paid
Payment to a non resident without TDS	Section 35(b)(ii)	Section 40(a)(i)	Expense disallowed until the year the tax is paid
Payment to a resident without TDS	Section 35(b)(i)	Section 40(a)(ia)	30 percent of the expense disallowed until the year the tax is paid
Serious TDS default	Section 476	Section 276B	Prosecution, graded by amount after Finance Act, 2026; none if paid by the Form 144 due date

Sources: sections 35, 398, 427, 448, 461, 468 and 476 of the Income Tax Act, 2025 as confirmed on incometaxindia.gov.in; the department's TDS FAQs; penalties page for the 1961 Act, read 2 Oct 2026.

Section 470 (old section 273B) protects a person who shows reasonable cause for the failure. A delayed TAN letter, with dated proof of the application, is the kind of evidence we keep on file.

How does TAN link to TDS on payments to non residents?

Every payment to a foreign parent or vendor that carries TDS needs the payer's TAN at four points. The payer quotes it on the challan, in Form 144, in Form 131 to the payee, and in the remittance paperwork. Form 144 is the quarterly statement for non resident payments under section 397(3)(b). It replaced Form 27Q.

Section 397(1)(b) says the TAN holder "shall quote such number in all challans, statements, certificates referred to in this Chapter". So a wrong or missing TAN breaks the chain. The foreign payee then cannot see the credit and cannot claim it at home.

The usual chain for a royalty to a US parent runs like this.

1. The subsidiary checks the treaty position and collects a tax residency certificate and Form 41 (old Form 10F).
2. It deducts tax at the treaty or Act rate under section 393(2), serial 17.
3. It deposits the tax under its TAN by the 7th of the next month.
4. It files Form 145 (old Form 15CA) and, where needed, gets Form 146 (old Form 15CB) from a Chartered Accountant. Our Form 15CA and 15CB guide explains when.
5. It files Form 144 for the quarter, quoting the TAN, the payee's PAN or foreign tax number, and any section 395 certificate.
6. It downloads Form 131 from TRACES and sends it to the parent.

A parent that holds a lower deduction certificate in Form 128 names the subsidiary's TAN in its application. Our Form 128 guide shows the Annexure I entry.

What do you do after getting a TAN?

Register the TAN on TRACES first and then on the income tax portal. The portal's FAQ says "you must first be registered on the TRACES portal before you can register as a Tax Deductor and Collector". It adds that TDS and TCS returns "can be submitted online by the Tax Deductors and Collectors only after registering". Then set up the monthly deposits and quarterly statements.

The portal registration needs a "Valid and active TAN" and the "PAN of the Principal Contact" already registered on the portal. The person registering verifies separate OTPs on mobile and email.

After registration, a foreign owned company runs this cycle.

Return or task	Form from 1 Apr 2026	Old form	Due date	Provision
TDS deposit, April to February	Challan under the TAN	Challan ITNS 281	7th of the next month	Rule 218(2)
TDS deposit for March	Challan under the TAN	Challan ITNS 281	30 April	Rule 218(2)
Quarterly statement, salary	Form 138	Form 24Q	31 Jul, 31 Oct, 31 Jan, 31 May	Section 397(3)(b); rule 219
Quarterly statement, residents other than salary	Form 140	Form 26Q	31 Jul, 31 Oct, 31 Jan, 31 May	Section 397(3)(b); rule 219
Quarterly statement, non residents	Form 144	Form 27Q	31 Jul, 31 Oct, 31 Jan, 31 May	Section 397(3)(b); rule 219
Quarterly TCS statement	Form 143	Form 27EQ	31 Jul, 31 Oct, 31 Jan, 31 May	Section 397; rule 219(4)
TDS certificate, other than salary	Form 131	Form 16A	Within 15 days of the statement due date	Section 395(4); rule 215(1)
TDS certificate, salary	Form 130	Form 16	Annual	Section 395
Remittance information	Form 145	Form 15CA	Before the remittance	Rule 220

Sources: form map and guidance notes on incometaxindia.gov.in; rules 215, 218, 219 and 220 of the Income Tax Rules, 2026, read 2 Oct 2026.

Keep the TAN details current too. FAQ 13 says "any change/correction in TAN details should be carried out through the prescribed change request forms". Protean charges the same INR 77 for a change request. A new registered office or a new person responsible goes through that route.

Our compliance calendar for foreign owned companies lists these dates next to the MCA and FEMA filings.

Can a company hold more than one TAN?

A company should hold one TAN unless it chooses separate TANs for branches or divisions. Section 397(1)(a) asks a person to apply only "if that person has not already been allotted such number". Protean's instructions add that "Different branches/divisions of a deductor/collector may apply for separate TAN for each branch/division".

A second TAN by mistake is a real problem. Statements split between two numbers, and payees see broken credits. If a company finds two TANs, it should keep the one it has used and surrender the other through the change request route.

You can check what TAN the department holds for a company with "Know TAN Details" on the income tax portal. It works without login. It needs the deductor's name or TAN, the category, the state and a mobile number for an OTP.

What changed in 2026?

Four things changed for TAN in 2026. The law moved to section 397 of the Income Tax Act, 2025. Forms 134 and 135 replaced Form 49B. Rule 216 now asks for a TAN before the first deduction, with documents. Resident buyers of property from non residents no longer need one from 1 Oct 2026.

Topic	Old rule	New rule	Date	Instrument
Duty to apply for TAN	Section 203A(1) of the Income Tax Act, 1961	Section 397(1)(a) of the Income Tax Act, 2025, for TDS and TCS together	1 Apr 2026	Income Tax Act, 2025 (Act 30 of 2025)
Duty to quote TAN	Section 203A(2)	Section 397(1)(b)	1 Apr 2026	Income Tax Act, 2025
Application form	Form 49B, rule 114A	Form 134 (government) or Form 135 (others), rule 216(1)	1 Apr 2026	Income Tax Rules, 2026, G.S.R. 198(E) of 20 Mar 2026
Time to apply	Within one month from the end of the month of deduction	Before the deduction; fallback within 30 days from the end of that month	1 Apr 2026	Rule 216(4)
Documents	None, per Protean's Form 49B FAQ	Proof of identity, address and date of incorporation from the rule 158(8) Table	1 Apr 2026	Rule 216(5)
PAN of applicant and person responsible	Not required by rule 114A	Mandatory for every Form 135 applicant and for the person responsible	1 Apr 2026	Form 135 FAQ Q4; Protean
Penalty for no TAN or a false TAN	Section 272BB, INR 10,000	Section 468, INR 10,000	1 Apr 2026	Income Tax Act, 2025
Property bought from a non resident by a resident individual or HUF	TAN needed	No TAN; Form 141, Schedule E	1 Oct 2026	Finance Act, 2026; Notification No. 121/2026, G.S.R. 830(E) of 22 Sep 2026
Quarterly statements	Forms 24Q, 26Q, 27Q, 27EQ	Forms 138, 140, 144, 143	1 Apr 2026	Income Tax Rules, 2026

Sources: sections 397 and 468 of the Income Tax Act, 2025; rules 114A (1962) and 216 (2026); Budget 2026 FAQs; Notification No. 121/2026, read 2 Oct 2026.

A TAN allotted before 1 Apr 2026 stays valid. The new law changed the forms and the section, not the number. Section 536 of the Income Tax Act, 2025 keeps actions taken under the 1961 Act alive where they are consistent with the new Act. Our note on the Income Tax Act, 2025 for foreign owned companies maps the other sections.

Worked example

A Singapore company buys Indian shares from a UK seller

A Singapore company buys all the shares of an Indian Private Limited company from a UK company for INR 5,00,00,000. The UK seller's cost is INR 2,00,00,000, and it has held the shares for more than 24 months. The buyer pays on 20 Aug 2026. Neither party has an Indian office.

Note 3(b) to serial 17 of the section 393(2) Table puts the TDS duty on the Singapore buyer. Section 397(1)(a) makes it apply for a TAN. We assume the gain is a long term capital gain on unlisted shares and use 12.5 percent, with no treaty relief claimed. Check the rate in force for the tax year of your own deal before you deduct. We add surcharge at 2 percent, the rate for a foreign company with income above INR 1 crore up to INR 10 crore. Cess is 4 percent.

Line	Amount (INR)
Sale price	5,00,00,000
Less cost	2,00,00,000
Long term capital gain	3,00,00,000
Tax at 12.5%	37,50,000
Surcharge at 2% of tax	75,000
Tax plus surcharge	38,25,000
Cess at 4%	1,53,000
TDS to deduct	39,78,000
Effective rate on the gain	13.26%
Effective rate on the price	7.956%

The buyer deducts on the gain because serial 17 covers "any other sum chargeable" to tax. The buyer needs evidence of the seller's cost to deduct on the gain alone. Without that evidence, the buyer should ask the Assessing Officer to determine the taxable part before it pays. The 1961 Act gave that route in section 195(2). Check the form map on incometaxindia.gov.in for the current form.

The TAN timeline then looks like this.

Step	Date	Rule
TAN applied for in Form 135, with an Indian address	Before 20 Aug 2026	Rule 216(4)(a)
Latest fallback date for the TAN application	30 Sep 2026 (30 days from 31 Aug 2026)	Rule 216(4)(b)
TDS of INR 39,78,000 deposited under the TAN	By 7 Sep 2026	Rule 218(2)
Form 144 for July to September filed	By 31 Oct 2026	Rule 219
Form 131 issued to the UK seller	Within 15 days of 31 Oct 2026	Rule 215(1)

Now suppose the buyer has no TAN until 25 Nov 2026 and deposits that day. Interest under section 398 runs from 20 Aug to 25 Nov 2026. That covers August, September, October and November, four months or parts of months.

Cost of the late TAN	Working	Amount (INR)
Interest at 1.5% a month for 4 months	39,78,000 × 6%	2,38,680
Late fee for Form 144 filed on 30 Nov 2026	30 days × 200	6,000
Penalty for not applying for a TAN	Section 468(1)	10,000
Total		2,54,680

The late fee under section 427 runs from 1 Nov to 30 Nov 2026, 30 days. Section 461 could add INR 10,000 to INR 1,00,000. In our reading it does not apply here. The statement went in within one month of the due date, with tax, fee and interest paid. A TAN applied for in July would have saved all of it.

An Indian subsidiary that pays its first invoice before its TAN

A German parent's Indian subsidiary has no TAN, because its incorporation filing did not include one. On 10 Jul 2026 the subsidiary pays a law firm INR 1,50,000 in professional fees. Serial 6(iii) of the section 393(1) Table requires TDS at 10 percent, so INR 15,000.

Case	TDS (INR)	Interest under section 398 (INR)	Late fee under section 427 (INR)	Section 468 penalty (INR)
TAN applied for in June, TDS deposited by 7 Aug 2026, Form 140 filed by 31 Oct 2026	15,000	Nil	Nil	Nil
TAN applied for on 25 Aug 2026 (within 30 days after July), TDS deposited on 20 Sep 2026	15,000	15,000 × 1.5% × 3 months = 675	Nil if Form 140 is on time	Nil in our reading, as rule 216(4)(b) was met
TAN applied for in November, TDS deposited on 25 Nov 2026, Form 140 filed on 30 Nov 2026	15,000	15,000 × 1.5% × 5 months = 1,125	30 × 200 = 6,000	Up to 10,000

In the second row, interest runs for July, August and September. In the third row it runs from July to November. The law firm also cannot see the credit in its Form 168 until the statement is filed.

Common mistakes

1. Waiting for the first deduction to apply. Rule 216(4)(a) asks for the TAN before the deduction. Apply as soon as the company knows it will run payroll or pay fees.
2. Thinking a SPICe+ TAN needs no further work. The number exists. Nobody can deposit tax under it until the company registers it on TRACES and the income tax portal. Register in the week of incorporation.
3. Naming a person responsible without a PAN. Form 135 needs a valid PAN for that person. Pick a resident officer, or get the foreign director a PAN in Form 95 first.
4. Using Form 134 for a company owned by a government. Rule 216(6) excludes "any company or any statutory or autonomous body". Use Form 135.
5. Applying for a second TAN. A duplicate splits credits across two numbers. Use "Know TAN Details" before applying, and use the change request form for updates.
6. Giving a foreign address. Protean's instructions require an Indian address. Use the registered office or an Indian representative's office.
7. Quoting the PAN where the TAN belongs. Challans and Forms 138, 140 and 144 need the TAN. A wrong number triggers section 468(2) only if knowingly false, but it always breaks the payee's credit.
8. Assuming a foreign buyer of Indian shares has no TDS duty. Note 3(b) to serial 17 covers buyers with no presence in India. Get a TAN before signing the share purchase agreement.
9. Relying on old Form 49B guidance. Pages that say no documents are needed describe the old form. Attach the rule 158(8) proofs.
10. Missing the 15 day window at Protean. Protean processes an online application only after the signed acknowledgement and documents arrive, within 15 days. Courier them the same day you file online.

Checklist

1. List every payment the company will make in its first year and mark those that carry TDS under sections 392 and 393.
2. Check "Know TAN Details" on the income tax portal to confirm the company has no TAN already.
3. Pick the person responsible for TDS and confirm that person holds a valid PAN.
4. Pass a board resolution naming the person responsible and the authorised signatory.
5. Gather the certificate of incorporation, the company PAN, the CIN and proof of the Indian address.
6. File Form 135 online on the Protean TIN website and pay INR 77.
7. Print, sign and post the acknowledgement and documents so they reach Protean in Pune within 15 days.
8. Track the status with the 14 digit acknowledgement number and save the TAN letter from email.
9. Register the TAN on TRACES and then on the income tax portal as a Tax Deductor and Collector.
10. Deposit TDS under the TAN by the 7th of each month and by 30 April for March.
11. File Forms 138, 140 and 144 by 31 Jul, 31 Oct, 31 Jan and 31 May.
12. Issue Form 131 within 15 days of each statement due date and Form 130 to employees each year.
13. File a change request whenever the address or the person responsible changes.

If you want us to set up the TAN and the first quarter's TDS for your Indian subsidiary, write to us through the contact page.

Frequently Asked Questions

What is the full form of TAN in India?+

TAN stands for Tax Deduction and Collection Account Number. It is a 10 character alphanumeric number the Income Tax Department allots under section 397(1) of the Income Tax Act, 2025. Anyone who deducts TDS or collects TCS quotes it on challans, quarterly statements and certificates.

Is Form 49B still valid in 2026?+

No. From 1 Apr 2026, rule 216(1) of the Income Tax Rules, 2026 prescribes Form 134 for government entities and Form 135 for everyone else. A Protean note of 7 May 2026 says the old TAN forms were discontinued from 31 Mar 2026. A TAN allotted earlier through Form 49B remains valid.

How much does TAN registration cost?+

Protean charges INR 77 for a new TAN application, made up of INR 65 plus 18 percent GST. The same fee applies to a change request. The department's Form 134 and 135 FAQ also gives Rs. 77 inclusive of GST. Professional fees for preparing the application are separate.

How long does it take to get a TAN?+

Neither Protean nor the department publishes an allotment time. Protean lets you track status after three days with the 14 digit acknowledgement number. Processing starts only when the signed acknowledgement and documents reach Protean, which must happen within 15 days of the online application.

Can a foreign company with no Indian office get a TAN?+

Yes, if it has to deduct Indian tax, but it needs a PAN and an Indian address. Protean's instructions say the "Address must be an Indian address", and PAN is mandatory for Form 135. Foreign buyers of Indian shares from non residents are the common case, because section 393(2) serial 17 reaches them.

Does a liaison office in India need a TAN?+

Yes, when it deducts tax, which almost every liaison office does on salaries and often on rent. The office applies in Form 135 with its own Indian address. It then files Form 138 for salary TDS and its annual Form 162 statement under section 505.

Is TAN needed to pay a foreign vendor from India?+

Yes, if the payment is chargeable to tax in India and TDS applies under section 393(2), serial 17. The Indian payer deposits the tax under its TAN, files Form 144 and issues Form 131. Form 145 is then filed before the bank remits the money.

Can I use my PAN instead of a TAN?+

Only in the cases listed in section 397(1)(c): certain rent, property purchase, large contract payments by individuals and virtual digital asset transfers. Those deductors use Form 141. A company paying salaries, fees or foreign vendors must use a TAN.

Do I need a TAN to buy a flat from an NRI after 1 Oct 2026?+

Not if you are a resident individual or HUF. Section 397(1)(c)(iii) exempts you, and Notification No. 121/2026 added Schedule E to Form 141 for this purchase. A company buying from a non resident still needs its TAN.

What is the penalty for not applying for a TAN?+

Section 468(1) of the Income Tax Act, 2025 lets the Assessing Officer impose INR 10,000 for not complying with section 397. Section 468(2) adds INR 10,000 for knowingly quoting a false TAN. Interest under section 398 and late fees under section 427 usually cost more.

Is a separate TAN needed for TCS?+

No. FAQ 5 of the department's Form 134 and 135 FAQ says the TAN allotted for TDS can also be used for TCS. Section 397(1) covers deduction and collection together, as section 203A of the 1961 Act did.

Can a company have a separate TAN for each branch?+

Yes. Protean's instructions say different branches or divisions of a deductor "may apply for separate TAN for each branch/division". Otherwise one company holds one TAN, because section 397(1)(a) asks for an application only where no TAN has been allotted.

How do I find a company's TAN?+

Use "Know TAN Details" on incometax.gov.in. It works without login. You search by deductor name or by TAN, choose the category and state, and verify an OTP sent to your mobile. The result shows basic details and the Assessing Officer.

How do I change the address on my TAN?+

File a change request for TAN data through Protean, online or at a facilitation centre. The department's FAQ 13 says changes go through "the prescribed change request forms for TAN holders". Protean charges INR 77 for a change request.

Who should be the person responsible in a foreign owned company's TAN application?+

The person who will run TDS compliance, usually a resident director, the finance head or the company secretary. Form 135 requires that person's full name, designation and valid PAN. A foreign director can serve only after getting a PAN.

Does a TAN expire?+

We have found no provision in section 397 or rule 216 that makes a TAN expire. A TAN from 2015 still works in 2026, and the new Act did not renumber TANs. Update the details through a change request when the company changes.

Sources

• Income Tax Department, Section 397 of the Income Tax Act, 2025 (compliance and reporting; TAN in section 397(1)), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-397-6
• Income Tax Department, Rule 216 of the Income Tax Rules, 2026 (application for TAN), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-216-1
• Income Tax Department, Rule 158 of the Income Tax Rules, 2026 (PAN application; Table under rule 158(8)), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-158-1
• Income Tax Department, Section 468 of the Income Tax Act, 2025 (penalty for failure to comply with section 397), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-468-6
• Income Tax Department, Section 393 of the Income Tax Act, 2025 (TDS tables, including Note 3(b) to serial 17 of the section 393(2) Table), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-393-6
• Income Tax Department, Section 392 of the Income Tax Act, 2025 (salary), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-392-6
• Income Tax Department, Section 35 of the Income Tax Act, 2025 (amounts not deductible), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-35-181
• Income Tax Department, Income Tax Act, 2025 as amended by the Finance Act, 2026, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf
• Income Tax Department, Guidance note on Forms 134 and 135, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/fn-134-135
• Income Tax Department, FAQs on Forms 134 and 135 (TAN application), read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/form-134-135-faqs
• Income Tax Department, FAQs on Tax Deducted at Source, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/faqs-on-tax-deducted-source
• Income Tax Department, FAQs and Guidance Notes on Forms as per Income Tax Rules, 2026 (form map), read 27 Sep 2026, https://www.incometaxindia.gov.in/faqs-and-guidance-notes-on-forms-as-per-income-tax-rules-2026
• Income Tax Department, Section 203A of the Income Tax Act, 1961, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-203a
• Income Tax Department, Rule 114A of the Income Tax Rules, 1962, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-114a
• Income Tax Department, Penalties under the Income Tax law (1961 Act, section 272BB), read 2 Oct 2026, https://www.incometaxindia.gov.in/w/penalties-under-the-income-tax-law
• Income Tax Department, FAQs on Budget 2026 (Part IX, Q4 to Q7), February 2026, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/20117/15766092/FAQs-Budget-2026+Updated.pdf/daf54d14-aca9-c4ea-b786-598fd2f8d4c4?t=1771846962606
• CBDT, Notification No. 121/2026, G.S.R. 830(E), Income Tax (Fifth Amendment) Rules, 2026, 22 Sep 2026, https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-09/Notification-no-121-2026.pdf
• Income Tax Department, Form 141 FAQs, read 2 Oct 2026, https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/form-141-faqs
• Income Tax Department, registration user manual for a Tax Deductor and Collector, read 2 Oct 2026, https://www.incometax.gov.in/iec/foportal/help/register-for-efiling-tax-deductor-and-collector
• Income Tax Department, registration FAQs for a Tax Deductor and Collector, read 2 Oct 2026, https://www.incometax.gov.in/iec/foportal/help/register-for-efiling-tax-deductor-and-collector-faq
• Income Tax Department, Know TAN Details user manual, read 2 Oct 2026, https://www.incometax.gov.in/iec/foportal/help/know-tan
• Protean eGov Technologies, Online Application for TAN (Form 134 and Form 135), read 2 Oct 2026, https://tin.tin.proteantech.in/tan/form49B.html
• Protean eGov Technologies, Instructions for filling Form 134 and Form 135, read 2 Oct 2026, https://tin.tin.proteantech.in/tan/InstructionsTanRegistration.html
• Protean eGov Technologies, TAN services overview, read 2 Oct 2026, https://tinpan.proteantech.in/services/tan/tan-introduction.html
• Protean eGov Technologies, Form 135, read 2 Oct 2026, https://tinpan.proteantech.in/downloads/tan/download/Form%20135.pdf
• Protean eGov Technologies, FAQ on new TAN, read 2 Oct 2026, https://tinpan.proteantech.in/faqs/tan/faq-tan-new-tan.html
• Protean eGov Technologies, New TAN Application Form, 7 May 2026, https://www.proteantech.in/articles/new-tan-application-form/