TRACES stands for TDS Reconciliation Analysis and Correction Enabling System. Before understanding what TDS TRACES is, you must know why you should know about this.
You are a salaried employee or you are an employer who has to deal with Tax Deduction at Source, then you must have heard about this term TRACES. While filing returns or issuing certificates, in many cases, the employer makes some typing mistakes or other information related mistakes. Then how to make any correction, if any? Where to do it? Or, being a salaried employee you have to check your Tax deduction and other details for the purpose of verification. Where and how to do? Answers of all these questions are below. Read this.
What is TDS TRACES?
As mentioned already, it is a kind of web portal or application developed by Income Tax Department to help the deductor, taxpayer and other third parties to make any correction or to look and verify their details through online process.
Facilities available on TRACES
- Correction facilities are available for the deductions.
- Challan status can also be viewed.
- Conso file can also be downloaded.
- Justification report is also available on the portal.
- Taxpayer, as well as Deductor, can view their annual tax credit statement or Form 26AS.
- Form 16 and Form 16A can also be viewed and downloaded for the purpose of verification.
- This portal helps the deduction file TDS or TCS correction statements.
The portal is open for both the taxpayer, as well as, the employer or Deductor. There is a separate window for both categories. One can log in on the website to avail the facilities or in case does not have the log in details then can register either as deductor or taxpayer. To know about step by step process, follow the article.
Step by step procedure
- First of all visit the website here. Once the website opens, a pop up will open flashing caution. Just press the “continue” button.
- After that, at the top left corner of the home page, you will see options like login, Register as new user, forgot password and forgot user id.
- Here, if you have login details as a deductor or taxpayer then you can feed all the details and get logged in. Login details are provided by the Income Tax Department to the deductor.
- In case, any taxpayer does not have one then he can register for the same by selecting the “Register as a new user” option.
- Under the “Register as a new option”, you will have to select whether you are a deductor or taxpayer.
- When you are on a register page, you will have to fill in details such as your name, your PAN, date of birth, TAN of your deductor, TDS/ TCS amount, Deductor type, assessment year, challan serial no, amount of the same etc.
- For PAO ( Pay and Accounts Officer), there is a separate window for login and in case, registration. See below –
We have listed some more occurring mistakes below that needed correction later. Please go through them and avoid them. They are –
- Mentioning of incorrect PAN details of the taxpayer/deductor.
- Same is the case with a TAN number in challan and statement.
- Challan Identification Number is also one of the commonly occurring mistakes.
- Spelling mistakes related to name and other details.
- Mismatching of TDS amount.
- Any other false information.
There are no restriction of any type in making any correction in the statement. So feel free anytime to do so. One more thing to note here is, in case a correction needed in TAN number, then the assessee will have to contact the Assessing Officer for any rectification, as that cannot be done by himself. Other corrections of any type numbering from C1 to C9 can be done by the assessee himself through TRACES.
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