If you are dealing with TDS (Tax Deducted at Source) or TCS (Tax Collected at Source), one term you will definitely come across is TAN. To get this TAN, the government has introduced Form 134 and Form 135 under the new Income-tax Rules, 2026.
Many beginners get confused about which form to use, who should apply, and what documents are needed.
What is TAN and why is it important?
TAN (Tax Deduction and Collection Account Number) is a unique identification number given by the Income Tax Department to anyone responsible for deducting or collecting tax.
Think of it like this:
If you deduct TDS from someone’s payment (like salary, contractor payment, etc.), the government needs a way to track it. That tracking happens through TAN.
Here’s where TAN becomes important:
- It must be mentioned in all TDS/TCS returns
- It is required while issuing TDS certificates
- It is compulsory in all tax-related communications for TDS/TCS
If you try to use PAN instead of TAN in these cases, it will not be accepted.
In simple terms, PAN is for taxpayers, TAN is for tax deductors.
Who should apply for TAN?
Anyone who is responsible for handling TDS or TCS must apply for TAN.
This includes:
- Employers deducting TDS on salary
- Businesses deducting TDS on payments
- Entities collecting TCS (like sellers of certain goods)
- Anyone filing TDS/TCS returns or issuing certificates
Even if you are a small business owner, once TDS rules apply to you, TAN becomes mandatory.
So practically, if you are entering the system of tax deduction, TAN is not optional—it is required.
What are Form 134 and Form 135?
Earlier, there was only one form (Form 49B). Now, it has been simplified into two separate forms for clarity.
These are:
- Form 134 → For Government entities
- Form 135 → For Non-Government entities
This separation makes things easier because the requirements for government and non-government applicants are different.
The idea is simple:
Instead of one complicated form for everyone, now each category gets a more relevant and simplified form.
Which form should you use?
This depends entirely on who you are.
Use Form 134 if:
- You are a Government entity
- Central or State Government
- Local authorities
- Use Form 135 if:
- You are not a Government entity
This includes:
- Individuals
- Proprietors (small business owners)
- Firms and LLPs
- Companies
- HUFs, Trusts, Associations
So for most readers (business owners, freelancers, professionals), Form 135 is the relevant one.
What details are required in TAN application?
The form mainly captures basic identity and compliance details.
Key information includes:
- Name of applicant
- Address
- PAN (mandatory for non-government)
- Category of applicant
- Details of person responsible for TDS/TCS
- Date of birth or incorporation
The purpose here is to ensure that the tax department can clearly identify who is deducting tax and hold them accountable.
What documents are required for a TAN application?
This is where many people make mistakes, so understand it clearly.
For Non-Government applicants (Form 135) you must submit:
- Proof of Identity (POI)
- Proof of Address (POA)
- Proof of Date of Birth / Incorporation
Additionally:
- PAN is mandatory
- LLP must provide registration number
- Company must provide CIN
- For Government applicants (Form 134):
- AIN (Accounts Office Identification Number)
- Certificate from PAO/ZAO/DTO/CDDO
The logic is simple: The government wants to ensure that only genuine entities are entering the TDS system.
How can you apply for TAN?
The process is quite straightforward.
You can apply through:
- Online via Protean (NSDL) portal
- Through MCA (for companies/LLPs)
- Offline via authorized PAN centers
Basic process flow:
- Fill the form (134 or 135)
- Submit documents
- Pay fee (₹77 approx.)
- Application is processed
- TAN is generated and sent
Once approved, you will receive your TAN via email.
What happens after applying?
After submission:
- Your application is verified
- Data is processed by Income Tax Department
- TAN is generated
- A confirmation letter is sent
If your form is incomplete, it may be rejected. So accuracy matters.
Also, once submitted, you cannot edit it. You will need to file a correction request later if needed.
Can you use the same TAN for TDS and TCS?
Yes, you do not need separate TANs.
One TAN works for:
- TDS (Tax Deducted at Source)
- TCS (Tax Collected at Source)
This simplifies compliance and reduces duplication.
What are the key changes in the new forms?
The new system is designed to be simpler and more structured.
Important improvements:
- Separate forms for Govt and Non-Govt
- Clear and simplified structure
- Mandatory supporting documents
- PAN made compulsory for non-government
- Better tracking and verification
The goal is to reduce confusion and improve accuracy in tax reporting.
Conclusion
Form 134 and 135 are simply the updated and simplified way to apply for TAN in India. If you are involved in TDS or TCS, getting TAN is not optional—it is a basic compliance requirement.
For most individuals and businesses, Form 135 is the form you will use. The process is simple, but accuracy in details and documents is very important. Once you understand the purpose of TAN, everything else becomes straightforward. You are simply registering yourself as a responsible tax deductor in the system.
