Tannase are enzymes that may be used in different industrial sectors as, for example, food and pharmaceutical. They are obtained mainly from microorganisms, as filamentous fungi. However, the diversity of fungi stays poorly explored for tannase production. Most of the research was focused on fungal tannase, as tannin was earlier considered as bacteriostatic. After the discovery of bacterial tannase in 1983, several studies on bacterial tannase were published. Despite the long history and numerous publications, tannase is still considered as one of the costly industrial enzymes. This is due to less titer and long fermentation time of the processes. In view of the growing demand, it is imperative to isolate high productive strains and develop economically feasible processes. A total of 19samples collected from the tannin-rich soil. The isolated cultures were screened for their tannase producing capability by observing the zone of hydrolysis on tannic acid agar plates. Among thefungal strains selected as tannase producers, The isolate S4RD4 showed largest zone of clearance of 30 mm (diameter) on tannic acid agar plate. Hence, it was selected for further study and identified as Penicillumduclauxii NFCCI, PUNE, INDIA. To enhance the production level of the enzyme different culture conditions were optimized and observed that optimum temperature and pH for tannase production was 30°C and 5.5 respectively. Maximum growth and enzyme production was recorded after 96 hrs of incubation period in the medium(B-modified synthetic medium) containing 1% tannic acid. Malt extract (2%) with NaNO3(0.2%) was found to the best nitrogen source and sucrose found to be a best carbon source for tannase enzyme production. Among the additives, metal ionsCu2+, Mg2+, Mn2+, CO2+, K+ Ca2+, Fe3+ affected enzyme production. Tween-20, Tween-40, Tween-60, Tween-80, Triton X-100 and SDS detergents tested, these detergents inhibited the production of tannase. The optimization of culture conditions enhanced the production level of tannase (33.41 U/ml) by (1.36) fold. This study reviews the microbial sources, isolation and screening methods, modes of production, substrates and media, temperature and pH of fermentation, duration of fermentation and location of tannase enzyme.