Tax Deducted at Source is a direct tax that is charged on income. TDS is charged on various incomes such as salaries, interest on the savings account, dividend income, professional fees, etc. In the earlier days, all compliances were done manually.
But with modernization and upcoming technologies, everything has become digitalized. Now, compliances are done through websites and online portals. TDS comes under the administration of the Income Tax Department.
The full form of TRACES is TDS Reconciliation Analysis and Correction Enabling System. While Income Tax is regulated through the income tax website, TDS is managed through the TDS Portal known as TRACES. It stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by the Income Tax Department of India. It provides various services related to TDS such as registration, downloading forms, applying for refunds, TDS returns, etc.
The TRACES homepage provides interlinking to all the facilities available on the portal. On the left side, there are tabs for existing users to log in. Some tabs provide for new registrations and recovery of accounts in case a user has forgotten a password or user ID. In the center, there is a detailed description of the portal, while on the right side, one can find help care for customers. The customer care number of TRACES is toll-free, and in case of any grievance, a user can also contact it via email.
Further, on the lower left side are the quick links to matters related to TDS such as TDS CPC communications, the facility of DIN verification, downloading of tutorials for guidance concerning registrations, refund functionalities, and online and offline correction of details, demand payment of TDS or TCS statement online. It also provides for downloading of formats for TDS on salary; consolidated file for salary and non-salary too.
The portal is further divided into various parts that provide information about various aspects of TDS, such as TDS on the sale of property and the procedure for payments under Right to Information. It provides for the year-wise statistical data concerning TDS such as yearly revenue collection, number of taxpayers etc.
Uses of the TRACES Portal
- TRACES provides for the registration of TDS for the stakeholders. Eligible people to deduct, collect and pay TDS can register themselves through this portal.
- It helps to enable the viewing of challan status, viewing of statement status, submitting a Refund request, downloading of the consolidated File, justification report and Form 16, Form 16A, as well as viewing of annual tax credit statements under Form 26AS.
- Persons who are registered on the portal as deductors or collectors can view the status of their challans, view the TDS or TCS credit, and do the verification of PAN (Permanent Account Number) connected to them.
- Persons who are registered as taxpayers can view the annual tax credit available for their PAN for the TDS or TCS amount deducted by deductors or collectors under Form 26AS. Additionally, the taxpayers can view if the deductor or collector has filed a statement for a particular financial year and quarter, and whether their PAN is included in the statement filed by the deductor or collector and download Form 16B as a buyer.
TRACES Facilities for Deductors
TRACES provides the following facilities to the persons who are eligible to deduct TDS –
- Registration and Login
- Adding sub-users for a TAN
- Viewing of Challan Status or Statement Status or Default Summary
- Downloading of the conso file or justification report
- Verification of PAN of persons concerned
- Downloading of consolidated TAN PAN file
- 197 Certificate verification
- Online correction
- Declaration of non-filing of statement
- Downloading of Form 16, Form 16A, Form 16B, Form 27D
- Downloading of any other forms under TDS such as Form 15G, Form 15H, Form 26Q, Form 24G etc.
- Managing the user profile and viewing the dashboard
- Functionality for TDS or TCS refunds
- Facility for the request of resolution
- Facility to make a declaration to deposit lower TDS
- Providing feedback
TRACES Facilities for Taxpayers
- Registration and Login of the taxpayer
- Viewing of Form 26AS
- Correction in Form 26QB
- Downloading of the Aggregate TDS Compliance Report
- Viewing and editing the user profile
- Facility for the request of resolution
- Providing Feedback
How to Register on TRACES as a Deductor?
- Go to the TRACES website.
- On the left side, click on the tab Register as New User.
- Now click on Deductor.
- Fill in the details of the TAN Number, enter Verification Code and Captcha and click on Proceed.
- Fill in the further details required at each step thereafter as mentioned on the portal and confirm the details.
- Upon successful submission of the registration request, an activation link and codes will be sent to your email id and mobile number provided as details for the registration.
- Activate your account using the activation link and the registration process is complete.
How to Register on TRACES as a Taxpayer?
Step 1. Go to the TRACES website.
Step 2. On the left side, click on the tab Register as New User.
Step 3. Now click on Tax Payer.
Step 4. Fill in the details of PAN, Name, Date of Birth, Date of Incorporation, Verification code, enter the Captcha and click on Proceed.
Step 5. After proceeding, fill in all details asked for on the website.
Step 6. Set the password and security questions for security purposes.
Step 7. After all the details have been filled in, click on Create Account.
Step 8. Upon successful submission of the details, an activation link and codes will be sent to your email id and mobile number provided as details for the registration.
Step 9. Activate your account using the activation link and the registration process is complete.