Introduction to TRACES
TRACES stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by TDS Centralised Processing Cell of the income-tax department.
The TRACES website can be visited at https://contents.tdscpc.gov.in/
TRACES integrates the following components:
- Tax Information Network
- Automated TDS Challan Matching
- TDS Defaults Processing
- IVR/ Call Centre
- Web Portal
The portal has been created using the latest technology to enhance swift interaction between the deductor, deductee, income-tax department, and CPC.
Deductors / Collectors, PAOs and Tax Payers will have to register on TRACES to create their account and view functionalities enabled for each user. Deductors/collectors will be able to view the status of challans. TRACES also enables deductors/collectors to view TDS / TCS credit and verify PAN of Tax Payers linked to the deductor/collector.
Tax Payers will be able to view the annual tax credit for their PAN for the TDS / TCS amount deducted by deductors (Form 26AS). Tax Payers can also view if deductor has filed the statement for a particular FY and Quarter and whether their PAN is included in the statement filed by deductor and download Form 16B as a buyer.
Highlights of the Portal
- Dashboard giving summary of Deductors account
- Online registration of TAN
- Online filing of TDS Statements
- Online corrections of TDS statements
- Default Resolution
- View Form 26AS
- Download Form 16/16A/Consolidated TDS File
- Grievance registration and resolution
- 26QB Correction
- Refund Functionality
The portal is for use by the following types of users:
- Deductors / Collectors
- Tax Payers
- Pay Account Office (PAO)
The various services given by TRACES is as below;
- Registration on TRACES – Deductors and Taxpayers will be able to register on TRACES. This will enable them to create their own account profile and view the activities under the respective TAN/PAN. After successful registration on the website, the user will be able to login to their account.
- Electronic filing of TDS Statements (Original and Corrections) – Regular & Correction return filing of TDS statements, electronically, is available.
- View Statement Processing Status and TDS Defaults – After the statement is filed, deductor can view the status of statements. If a statement has been processed with defaults, the user can download intimation sent by TDS CPC for the statements having defaults.
- View Tax Credit Statement (26AS) – View Tax Credit Statement (26AS) helps taxpayers to view TDS Deductions details and payment of taxes.
- Digital TDS Certificates – Deductor can download TDS certificates (Form 16/16A) after processing of TDS statement and provide to taxpayers. These deductions also reflect in 26AS of taxpayers for claiming deductions in Income Tax Return.
- Justification Report for details of TDS Defaults – Justification report provides a consolidated report of defaults for a statement. Once a return has been processed with defaults, a Justification Report is prepared for the deductor to view the default justifications. This assists the deductor in the filing of the correction statement for rectification of the identified defaults.
- Consolidated File for submitting corrections – TRACES provides an option to deductors to download the consolidated file as per NSDL to enable filing of correction statement through TIN-FC.
- Aggregated TDS Compliance Report – Aggregated TDS Compliance Report helps taxpayer for knowing defaults against multiple TANs associated with PAN of Deductor.
- Online TDS Statement Corrections – Online Correction statement available on TRACES for deductors for fast submission and processing of the statements.
- TDS Refunds – Deductors will be able to submit their refund requests through TRACES. A refund request can be submitted for a maximum of five challans.