TAN Registration and TDS Filing Guide 2026 — Form 49B, Quarterly Returns, Form 16 | RushTax Blog

Any person or entity that deducts TDS must have a TAN (Tax Deduction and Collection Account Number). Here is the complete guide to TAN registration and TDS compliance for FY 2026-27.

What is TAN?

TAN is a 10-digit alphanumeric number issued by the Income Tax Department to entities that deduct or collect tax at source. It is mandatory for:

Employers deducting TDS on salary (Section 192)
Businesses deducting TDS on payments to contractors, professionals, etc.
Banks deducting TDS on interest
Any person required to deduct TDS under any section

Who Needs TAN?

You need TAN if you:

Pay salary above the basic exemption limit
Pay rent above ₹2,40,000 per year (Section 194I)
Pay professional fees above ₹30,000 per year (Section 194J)
Pay contractor fees above ₹30,000 per payment or ₹1,00,000 per year (Section 194C)
Make any other payment that attracts TDS

Individuals paying rent: Individuals paying rent above ₹50,000 per month must deduct TDS at 5% under Section 194IB. They do not need TAN — they use Form 26QC instead.

How to Apply for TAN

Online Application (Form 49B)

Go to onlineservices.nsdl.com
Click Apply Online → TAN
Select New TAN
Fill Form 49B:
- Category of deductor (company, individual, HUF, etc.)
- Name and address
- PAN
- Contact details
Pay ₹65 fee
Submit and note the acknowledgement number

TAN is issued within 7-10 working days.

Offline Application

Download Form 49B from the NSDL website, fill it, and submit at any TIN Facilitation Centre.

TDS Deposit Deadlines

Month	Deposit Deadline
April to February	7th of the following month
March	April 30
Government deductors	Same day as deduction

How to deposit TDS:

Go to incometax.gov.in → e-Pay Tax
Select Challan 281 (TDS/TCS)
Enter TAN, assessment year, and TDS amount
Pay via net banking or UPI

Quarterly TDS Return Filing

Form 24Q — TDS on Salary

Filed by employers for TDS deducted on salary payments.

Quarter	Period	Due Date
Q1	April–June	July 31
Q2	July–September	October 31
Q3	October–December	January 31
Q4	January–March	May 31

Form 26Q — TDS on Non-Salary Payments

Filed for TDS deducted on payments to contractors, professionals, rent, etc.

Same due dates as Form 24Q.

Form 27Q — TDS on Payments to NRIs

Filed for TDS deducted on payments to non-residents.

Same due dates as Form 24Q.

How to File TDS Returns

Download the RPU (Return Preparation Utility) from the NSDL website
Fill in the deductee details (PAN, name, payment amount, TDS deducted)
Validate the file using the FVU (File Validation Utility)
Upload the validated file on the TRACES portal

Alternatively: Use accounting software (Tally, Winman, etc.) that generates TDS returns automatically.

Form 16 and Form 16A Generation

Form 16 — TDS Certificate for Salary

After filing Form 24Q for Q4, generate Form 16 for each employee:

Login to traces.gov.in
Go to Downloads → Form 16
Select the financial year and PAN of employees
Download and issue to employees by June 15

Form 16A — TDS Certificate for Non-Salary

After filing Form 26Q, generate Form 16A for each deductee:

Login to TRACES
Go to Downloads → Form 16A
Select the quarter and PAN of deductees
Download and issue within 15 days of the due date of TDS return

Penalties for TDS Non-Compliance

Offence	Penalty
Non-deduction of TDS	Interest at 1% per month from due date to deduction date
Non-deposit of TDS	Interest at 1.5% per month from deduction date to deposit date
Late filing of TDS return	₹200 per day (maximum equal to TDS amount)
Non-filing of TDS return	₹10,000 to ₹1,00,000
Incorrect PAN in TDS return	20% TDS rate applies

Frequently Asked Questions

Can I use PAN instead of TAN for TDS?

No. TAN is mandatory for all TDS deductions except Section 194IB (rent by individuals) and Section 194IA (property purchase), which use Form 26QC and Form 26QB respectively.

What if I deduct TDS but the deductee's PAN is wrong?

TDS at 20% applies if the deductee's PAN is incorrect or not provided. The deductee cannot claim the TDS credit.

How do I correct errors in a filed TDS return?

File a correction statement on the TRACES portal. You can correct PAN, challan details, and deductee details.

Need help with TAN registration, TDS deposits, or quarterly TDS return filing? I handle complete TDS compliance starting ₹499/quarter. Message me on WhatsApp.

Any person or entity that deducts TDS must have a TAN (Tax Deduction and Collection Account Number). Here is the complete guide to TAN registration and TDS compliance for FY 2026-27.

What is TAN?

TAN is a 10-digit alphanumeric number issued by the Income Tax Department to entities that deduct or collect tax at source. It is mandatory for:

Employers deducting TDS on salary (Section 192)
Businesses deducting TDS on payments to contractors, professionals, etc.
Banks deducting TDS on interest
Any person required to deduct TDS under any section

Who Needs TAN?

You need TAN if you:

Pay salary above the basic exemption limit
Pay rent above ₹2,40,000 per year (Section 194I)
Pay professional fees above ₹30,000 per year (Section 194J)
Pay contractor fees above ₹30,000 per payment or ₹1,00,000 per year (Section 194C)
Make any other payment that attracts TDS

Individuals paying rent: Individuals paying rent above ₹50,000 per month must deduct TDS at 5% under Section 194IB. They do not need TAN — they use Form 26QC instead.

How to Apply for TAN

Online Application (Form 49B)

Go to onlineservices.nsdl.com
Click Apply Online → TAN
Select New TAN
Fill Form 49B:
- Category of deductor (company, individual, HUF, etc.)
- Name and address
- PAN
- Contact details
Pay ₹65 fee
Submit and note the acknowledgement number

TAN is issued within 7-10 working days.

Offline Application

Download Form 49B from the NSDL website, fill it, and submit at any TIN Facilitation Centre.

TDS Deposit Deadlines

Month	Deposit Deadline
April to February	7th of the following month
March	April 30
Government deductors	Same day as deduction

How to deposit TDS:

Go to incometax.gov.in → e-Pay Tax
Select Challan 281 (TDS/TCS)
Enter TAN, assessment year, and TDS amount
Pay via net banking or UPI

Quarterly TDS Return Filing

Form 24Q — TDS on Salary

Filed by employers for TDS deducted on salary payments.

Quarter	Period	Due Date
Q1	April–June	July 31
Q2	July–September	October 31
Q3	October–December	January 31
Q4	January–March	May 31

Form 26Q — TDS on Non-Salary Payments

Filed for TDS deducted on payments to contractors, professionals, rent, etc.

Same due dates as Form 24Q.

Form 27Q — TDS on Payments to NRIs

Filed for TDS deducted on payments to non-residents.

Same due dates as Form 24Q.

How to File TDS Returns

Download the RPU (Return Preparation Utility) from the NSDL website
Fill in the deductee details (PAN, name, payment amount, TDS deducted)
Validate the file using the FVU (File Validation Utility)
Upload the validated file on the TRACES portal

Alternatively: Use accounting software (Tally, Winman, etc.) that generates TDS returns automatically.

Form 16 and Form 16A Generation

Form 16 — TDS Certificate for Salary

After filing Form 24Q for Q4, generate Form 16 for each employee:

Login to traces.gov.in
Go to Downloads → Form 16
Select the financial year and PAN of employees
Download and issue to employees by June 15

Form 16A — TDS Certificate for Non-Salary

After filing Form 26Q, generate Form 16A for each deductee:

Login to TRACES
Go to Downloads → Form 16A
Select the quarter and PAN of deductees
Download and issue within 15 days of the due date of TDS return

Penalties for TDS Non-Compliance

Offence	Penalty
Non-deduction of TDS	Interest at 1% per month from due date to deduction date
Non-deposit of TDS	Interest at 1.5% per month from deduction date to deposit date
Late filing of TDS return	₹200 per day (maximum equal to TDS amount)
Non-filing of TDS return	₹10,000 to ₹1,00,000
Incorrect PAN in TDS return	20% TDS rate applies

Frequently Asked Questions

Can I use PAN instead of TAN for TDS?

No. TAN is mandatory for all TDS deductions except Section 194IB (rent by individuals) and Section 194IA (property purchase), which use Form 26QC and Form 26QB respectively.

What if I deduct TDS but the deductee's PAN is wrong?

TDS at 20% applies if the deductee's PAN is incorrect or not provided. The deductee cannot claim the TDS credit.

How do I correct errors in a filed TDS return?

File a correction statement on the TRACES portal. You can correct PAN, challan details, and deductee details.

Need help with TAN registration, TDS deposits, or quarterly TDS return filing? I handle complete TDS compliance starting ₹499/quarter. Message me on WhatsApp.