Every person whose taxes are deducted at the source or those who collect tax at the source is required to obtain TAN. If a person fails to apply for TAN or does not quote the TAN in the specified documents, then the person will get a penalty of Rs.10,000. The Tax Deduction and Collection Account Number TAN required for people who are deducting or collecting tax at the source. There is a penalty of Rs.10,000 for not quoting the TAN. Anyone paying a salary or commission must be required to get a TAN. An applicant cannot provide their PAN number in the field where TAN is required to be mentioned and both these numbers serve different purposes. TAN is a unique identification number that is given to those who are deducting or collecting taxes at source on behalf of the Income Tax Department, PAN is a unique number given to assesses that is individuals and companies.