What is the Process of Obtaining PAN & TAN for a Registered Sole Proprietorship Firm?

Last Updated on May 15, 2026

The PAN and TAN are both key compliance elements to be submitted to any registered sole proprietorship in India. The PAN is indeed necessary to file taxes, open a bank account or perform any type of financial transaction, while the TAN is required only if the proprietorship has to deduct or collect tax at source.

Simply put, a sole proprietor does not exist as a separate legal entity from the proprietor, nor does the sole proprietor pay taxes in his/her own right for any other reason. The PAN is the primary identifier for an individual’s tax return and other financial transactions. The PAN links all of the proprietor’s income (revenue) and any tax credits that may be owed back to the proprietor after filing taxes, and it is a requirement for anyone to complete an income tax return under the Income Tax Act, to open a business bank account, to access TDS credit in processing TDS under the Income Tax Act, and for any other high-value financial transactions.

The TAN is required by any entity or individual to deduct taxes from any payments made to any source (TDS) or collect taxes from any payments made to any recipient (TCS); without having a TAN one cannot legally remit TDS to the government, or file TDS returns with the government, and penalties will be assessed against an individual or entity for not having a TAN when they are required to do so for TDS.

Guide for Obtaining PAN & TAN for a Registered Sole Proprietorship

Step 1 – Assess your requirement for both PAN and TAN

PAN – A PAN must be acquired for any standalone proprietorship that is a business entity or expects to realise taxable income. PAN is essential for the purpose of submitting your income tax returns, proving your identity for tax purposes, and in numerous financial transactions, including the sale/purchase of property and dealings with banks by means of cash deposits/transfers over Rs 50,000.

TAN – TAN must be obtained by businesses that have to withhold taxes at the source on payments such as wages/salaries, payments to sub-contractors, payments owed under contracts for work performed, lease/rental payments, commission, professional fees or any other type of payment that has TDS/TCS imposed upon them in accordance with the Income Tax Act. If your business does not make any payments that are subject to TDS/TCS, you do not have to obtain a TAN.

Step 2 – Gather documents required to obtain PAN

When you apply for your PAN as an individual/proprietor, you will need to present at least one form of identity verification. Acceptable forms of identification include:

1) Proof of Identity – Aadhaar, passport, voter’s registration card, or any other accepted by the government.

2) Proof of Address – Bank statement, utility bill, company registration document, or any other acceptable proof of where you live or do business.

3)If the application is made on behalf of the owner (through an agency), the agency will require a written authority to act on behalf of the proprietor.

When you apply for a TAN, you will require:

• The Pan Number of the proprietor
• Proof of business address registration
• The identity and contact details of the applicant’s authorised signatory.

Step 3 – Submitting an online application

How to file your PAN online

1. Establish or log in to your account on the relevant portal for requesting a PAN.
2. Complete Form 49A – This includes: your full legal name (business owner), parent(s)/guardian information, a mailing address, and, if applicable, information regarding your proprietorship so that they can issue your PAN in your name; any “trade as” information you have will normally be recorded by your bank for purposes of KYC.
3. Once the above is complete, upload the necessary documentation. Use Aadhaar-based E-KYC and OTP to complete your application.
4. Online processing should allow for payment of the prescribed fee.
5. Record any Acknowledgement in order to track your request.

How to file your TAN online

1. Complete Form 49B, which requires the name and PAN of the principal employer, address and telephone numbers, and the type of principal employer.
2. Provide the name of the individual signing your TDS Return.
3. Upload any required documentation (if applicable), and make the payment if required.
4. Record the digital receipt so you can track the completion of your TAN confirmation request.

Step 4 – Post-Issuance Steps for Using PAN/TAN

PAN: You must provide your PAN when filing your tax returns, bank KYC documents, invoices (if applicable), and/or TDS/TCS statements, when applicable. You must keep the PAN information current, including making corrections to it if necessary (e.g., to your name, your date of birth, or your address, if those are incorrect).

TAN: You must provide your TAN with your TDS/TCS challans, TDS/TCS returns, and TDS/TCS certificates, and all correspondence with the Income Tax Department. You must keep your TAN in a secure location. If you change your address and/or if there is a change in the deductor’s circumstances, you must make the requisite changes to the TAN records using the prescribed forms.

Timelines and Issuance

PAN: The normal processing period for a properly submitted PAN application is 15 to 20 days. However, if the applicant has a paperless Aadhaar e-KYC, the processing time could be shorter. The applicant will receive the PAN card at their specified mailing address and may also download an electronic PAN. The applicant can track the status of the PAN application by using the reference number from the tracking portal.

TAN: A TAN is typically assigned within days of verification. Once a TAN is assigned, you will receive an acknowledgement receipt or a certificate containing the TAN. You must include the TAN in your TDS/TCS returns and your TDS/TCS challans.

Practical Tips for Sole Proprietors

1. Use e-KYC/Aadhaar linking for faster issuance.
2. Keep a digital copy of your PAN and TAN acknowledgement receipts and certificates.
3. If you use an agent or tax practitioner/navigator to file your returns, ensure you obtain complete copies of all of the receipts.

Frequently Asked Questions (FAQs)

1. Can I have a separate PAN for my sole proprietorship?

The Proprietor’s PAN is the same for the business as it is for the person.

2. Is a TAN required for a sole proprietorship?

There is not necessarily a TAN needed for a Proprietorship unless there will be withholding taxes from a transaction at the time of payment or from the sale of tangible property being collected from customers.

3. What is the process for getting my PAN/TAN?

The issuance of a PAN takes approximately two to three weeks to obtain, while the issuance of a TAN usually takes only several business days after a TAN application is submitted.

4. Can I apply for my PAN and TAN together?

You may as well get your TAN immediately after your PAN; however, you should first obtain your PAN, given that you will need your PAN’s identifying number in order to apply for your TAN.

5. What if I lose my PAN card or TAN certificate?

You can download e‑PAN or apply for a reprint/reissue through the same official portal; for TAN, request a reprint or access the TAN details from the acknowledgement/correspondence.