The Income-tax Rules, 2026 have renumbered the PAN and TAN application forms. We use the long-standing names (49A, 49AA and 49B) here because that's how most people look for them; the online application uses the current form automatically.
Two different identifiers, often confused
PAN identifies who's being taxed — an individual, a company, a firm, or any other entity with income tax obligations. TAN identifies who's responsible for deducting tax at source on payments to others — an employer deducting TDS on salary, or a business deducting TDS on contractor or professional payments, needs a TAN regardless of whether it also has its own PAN as a taxpayer. A single business typically needs both: a PAN for its own tax filings, and a TAN if it deducts TDS on any payment it makes.
PAN is permanent — it doesn't change with a change of address, employer, or even across a change in marital status affecting name. What can and sometimes needs to change is the information linked to it, which is handled through a correction application rather than a fresh PAN.
Documents required
- For individual PAN (Form 49A): identity proof (Aadhaar, passport, voter ID), address proof, and date of birth proof.
- For a company PAN: the Certificate of Incorporation from the ROC.
- For a partnership firm or LLP PAN: the partnership deed or LLP agreement, and the registration certificate.
- For a foreign citizen or entity (Form 49AA): passport, and where applicable, a certificate of registration in the country of residence.
- For TAN (Form 49B): basic entity details — no extensive supporting document set is generally required, since TAN is an operational registration rather than an identity verification.
- For a correction application: proof supporting the corrected detail (a marriage certificate for a name change, for instance) and a copy of the existing PAN or TAN.
The application process, step by step
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Confirming which is needed
Whether PAN, TAN, or both are required is confirmed based on the entity's actual activities — a new business, for instance, needs a PAN immediately but a TAN only once it starts deducting TDS on some payment.
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Preparing the application
The relevant form is completed with supporting documents, checked for consistency — a common source of delay is a name or date of birth that doesn't match exactly across the submitted documents.
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Submission
The application is filed online through the authorised portals, with documents uploaded or a physical acknowledgement sent where required.
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Issuance
Once processed, the PAN or TAN is allotted, and the physical card (for PAN) is dispatched to the registered address, alongside an electronic copy (e-PAN) issued sooner.
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Linking and verification
Once issued, PAN is linked to Aadhaar where required, and TAN is registered on the TDS filing portal ahead of the first return that needs to be filed against it.
Practical notes from our engagements
- Name mismatches between the PAN application and supporting documents. A middle name present on one document and abbreviated on another is one of the most common reasons a PAN application is returned for correction before it can be processed.
- TAN applied for only after the first TDS deduction is already due. A business realising partway through a payment cycle that it needs to deduct TDS, without already having a TAN, ends up delayed on a compliance obligation it should have anticipated at the time of incorporation or the first relevant hire.
- PAN-Aadhaar linking overlooked. An unlinked PAN can become inoperative for various purposes, which then affects everything from TDS deduction rates to return filing — confirming this link is done and active is a simple check worth making periodically.
- Multiple PAN applications submitted in error. Holding more than one PAN is not permitted and can itself attract a penalty — where there's any doubt about whether a PAN already exists for an entity, this is checked before a fresh application is filed.
How we handle PAN and TAN applications
We confirm supporting documents are internally consistent before filing, since a mismatch is the most common reason an application is returned. For a new business, we assess whether a TAN is needed from the outset — based on whether the business will make payments requiring TDS deduction — rather than waiting until a payment is already due.
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Frequently asked questions
Does every business need both a PAN and a TAN?
Every business needs a PAN for its own tax filings. A TAN is needed only once the business is required to deduct or collect tax at source on some payment — not every business reaches that point immediately.
Can PAN details be corrected after it's been issued?
Yes — a correction application can be filed for changes like name, date of birth, or address, supported by the relevant proof, without needing an entirely new PAN.
Is it illegal to hold more than one PAN?
Yes — holding multiple PANs isn't permitted and can attract a penalty. Where there's uncertainty about whether a PAN already exists, this should be checked before a new application is filed.
How long does it take to get a new PAN or TAN?
Processing is generally quick once the application is complete and consistent — an e-PAN is often issued within a short period, with the physical card following, though timelines depend on document verification.
What is PAN 2.0, and do I need to apply for it separately?
It's an initiative introducing an upgraded, QR-code enabled PAN card, generally issued alongside the existing PAN number rather than requiring a fresh application — the underlying PAN itself doesn't change.
Can a foreign national apply for an Indian PAN?
Yes, using Form 49AA, with a passport and, where applicable, proof of registration in their country of residence.
What happens if PAN isn't linked to Aadhaar?
An unlinked PAN can become inoperative for various purposes, which affects TDS deduction rates and other compliance — this is worth checking and resolving where applicable.
Does a new company need to apply for PAN separately after incorporation?
PAN is typically applied for as part of the incorporation process itself (through SPICe+) rather than as a wholly separate application afterward — see our company registration page for how the two are coordinated.