TRACES website mainly integrates all the stakeholders/deductors, i.e., taxpayers, deductors, and pay account office, of the Income Tax Department for the overall work procedure based on TDS/TCS. The full form of the TRACES is TDS Reconciliation Analysis and Correction Enabling System.Shiv Kumawat
TRACES website stands for TDS Reconciliation Analysis and Correction Enabling System.TRACES online portal connects all the stakeholders/deductors, i.e., taxpayers, deductors, and pay account office, of the Income Tax Department engaged in the implementation and administration activities related to TDS/TCS. The website is also widely used by the stakeholders of the tax department to download a variety of Forms, e.g., Form 16A, Form 16, and Form 26AS.
TRACES Website and its Uses
A range of activities can be carried out by both the taxpayers and TDS deductors on the TDS TRACES website. Some of the key services offered by TRACES are mentioned below:
TDS TRACES website offers a hassle-free online system for carrying out the tax-related activities for both the deductors and taxpayers. The legacy pen-paper systems have been replaced by this online TDS/TCS system as it is more accurate, reliable, and faster. Activities like PAN details and challan corrections can be easily made with this online rectification system. TRACES can also enable the deductors/taxpayers to see TDS /TCS credit along with PAN verification.
Here is a list of key links/services that are available to the registered TDS TRACES website users:
The facilities/services provided by TRACES can be largely categorized into three distinct services:
Taxpayers/deductors/PAO can register on the TDS TRACES website for accessing varied online services available on the TRACES (TDS Reconciliation, Analysis and Correction Enabling System), Here are the key steps that should be followed for registration on TRACES:
Step 1: Visit TRACES website and click on the register as a new link to open the option of registering as taxpayer, deductor or a PAO.
Step 2: If you click on the taxpayer option, then you will be directed to the page as given below:
Necessary details that must be filled by a Taxpayer for complete TRACES registration include:
With the above mandatory details, any one of the following also needs to be completed by the taxpayer:
Step 3: After the input details are filled accurately, the taxpayer must click on ‘Create Account’ option. Edit option can also be used by the taxpayer shown on the confirmation pop-up window in case if he/she want to make correction in submitted details.
Step 4: Once the confirmation is given, the account will be created along with an activation link that will be sent to the taxpayer’s registered mobile number and email id.
A taxpayer refers to a person or entity from whom the tax has been deducted by the deductor. Any individuals who have deposited tax can register on TRACES. The facilities that are available for taxpayers on the TRACES include:
The taxpayers can view their tax credit online with the help of Form 26AS, which include details like:
TRACES Customer Care
5. Once the details are filled for each section, click on submit button to finish TRACES deductor registration.
6. An activation link will be sent on the user’s registered email id whereas separate activation codes will be sent to the registered mobile number and email id of the user.
7. Once the user receives the activation link, he/she must enter the user id along with the activation code
8. After activation, the users can easily log in to TRACES.
TRACES Services available to Deductor
A deductor under TDS refers to a person or entity, who is responsible for tax deduction at source on a specific payment date. Such tax deducted by the deductor is usually submitted to the income tax department in a pre-set time limit. The details of tax deducted also needs to be furnished to the income tax department in a statement by the deductor. The individuals required to file the electronic TDS are given below:
The registered deductors on the TRACES website are also offered the facility to download Form 16/16A Via Gen TDS Software. These documents are used by the taxpayers to file their tax returns easily and also contain detailed information about tax deducted at source (TDS).
According to section 192 of the Income Tax Act, Form 16 is issued post-tax deduction by the employer on behalf of an employee in case the salary/income.
TRACES Justification Report and its use?
The details pertaining to defaults or errors identified by the income tax department (ITD) while checking the statements furnished by the deductors for a particular quarter are included in TRACES Justification report. This report also provides in-depth information about the errors that need to be rectified by the deductor. The deductor must file a correction statement along with the applicable interest/fee and other dues for rectification. Besides this, the information disclosed in the justification report can also be used by the deductor to give clarification in relation to the ‘errors’ picked out by the tax authorities.
If a particular user has already registered on TAN (Tax Deduction and Collection Account Number), then here are the key steps that he/she must follow for login into TRACES:
Role of Admin User on TRACES
When a TAN is registered on the TRACES for the first time, the admin user role is created. This role can also be created after furnishing TAN details to an assessing officer.
Role of Sub User on TRACES
Admin user registered on TRACES has the authority to create a sub-user role on TRACES. As per the rule, a maximum of four sub-users is allowed to be created by an admin belonging to a specific TAN. The admin can also delete Sub-users, but once it is done, the details cannot be recovered by the admin on TRACES.
PAO refers to Pay and Account Office who held the responsibility of maintaining the payment records for different government employees. Drawing and Disbursing Officer (DDO) belonging to a particular ministry or departments is a person who is allowed to withdraw money for specific payments that are made against a letter of credit account or an assignment account, which is opened in his/her favor in a particular branch of an allocated bank. PAO is generally required to file Form 24G for tax deductions made by DDO to the agency authorized by the Director General of Income-tax (Department) within a time-span of 10 days after the end of a given calendar month.
Here are the steps for registration as PAO on TRACES:
5. Confirm details and click on the submit button.
6. After registration, an activation link will be sent to user’s registered email id along with the activation code on both the registered mobile number and email ID.
7. Click on the activation link and enter the activation code along with the user ID.
8. Post activation, the user can easily login into TRACES as PAO.
List of Services available on TRACES for PAO
Different types of correction like change in personal information, deductee details, challan correction etc. can be made by the registered users on using the TDS TRACES online correction facility. Here are the detailed steps to make correction in Challan on TRACES:
There are different online correction services status available for a TRACES registered individual/entity:
This report is primarily used for identifying defaults in all TANs linked to entity's PAN. It is highly useful for effective TDS administration, control and compliance at the firm level. Here are are the detailed steps for availing TDS Compliance Report:
Request Status Check Results on TRACES?
Following possible results can be seen by the user once the request status check is made on the TDS TRACES website:
How to make Resolution Request on TDS TRACES?
The facility of “Request for Resolution” can only be availed by registered individuals/entities by accessing the online grievances module of the TDS TRACES website. The taxpayer must upload all the relevant documents for request processing. Following are the steps for resolution:
Here are the results of ticket status check that can be seen on TDS TRACES: