The Income Tax Department provides an online service called TRACES (TDS Reconciliation Analysis and Correction Enabling System) at www.tdscpc.gov.in.
This tool is designed to help both TDS payers and deductors view and reconcile their TDS payments online to file returns and request refunds.
Purpose of the TRACES Website
The TRACES website offers a range of services to taxpayers and TDS deductors, including but not limited to:
- Viewing and downloading Form 26AS.
- Requesting TDS/TCS statement revisions.
- Checking challan status.
- Checking the status of various tax statements online.
- Requesting a refund online.
- Downloading consolidated files, justification reports, and Forms 16 and 16A (for TDS deductors only).
- The online services provided by TRACES offer an easier way to handle various tax tasks, replacing older, more time-consuming paper-based systems. PAN details and challan corrections can be quickly made using the online rectification feature.
- Corrections to previously filed TDS returns should be done online.
- Online rectification of OLTAS Challans.
Steps for TRACES Registration as a Taxpayer
Taxpayers/PAO/Deductors must first register on the TRACES website to utilize its online services. Follow these steps to register on TRACES India:
Step 1: Click on 'Register as New User' to access the registration page.
Step 2: You will be directed to the taxpayer registration page.
Step 3: Enter the required details and click 'Create Account.' A confirmation page will appear to verify the provided information. You can edit the data if needed by using the edit option.
Step 4: After reviewing the details, an activation link and code will be sent to the applicant's email address and mobile number.
Steps for TRACES Registration as a Deductor
Step 1: Visit the TRACES website.
Step 2: Select 'Register as New User.'
Step 3: Choose 'Deductor' as the user type.
Step 4: Complete the required information to register as a deductor on TRACES.
Step 5: Once registration is successful, an activation link will be sent to the registered email, along with separate activation codes for the email and mobile number.
Step 6: Click the activation link and enter your user ID and activation details.
Step 7: After activation, you can access the TRACES portal.
How to Log In to the TRACES Portal?
For deductors who are already registered, the login process is as follows:
Step 1: Visit the TDS - CPC portal and click on 'Login' to access the login page.
Step 2: Enter your Login ID and Password (TIN number), and click 'Go.'
Step 3: The 'Profile menu' will be enabled upon login; click on it.
Step 4: Enter the deductor's details, including the PAN number and date of birth, and then click Submit.
Step 5: Review the information on the confirmation page and click submit.
Step 6: An activation link and activation codes will be sent to the registered email and mobile number.
Step 7: Enter your User ID and activation details after clicking the activation link.
Step 8: Once activated, you will be able to access TRACES.
TRACES Justification Report
The TRACES Justification Report for TDS provides insights into the defaults or errors identified by the Income Tax Department (ITD) when processing a deductor's statement for a particular quarter of the fiscal year.
This report contains detailed information regarding the defaults and/or errors that need correction by the deductor. To rectify, the deductor must file a correction statement, settle the necessary fees or interest, and address any additional dues. The report can also be used by deductors to clarify any "errors" flagged by the tax authorities.
How to Generate a TRACES Compliance Report?
The TDS Compliance Report highlights defaults in all TANs associated with the entity's PAN. Taxpayers can generate the report using the following steps-
Step 1 - Start by logging into TRACES as a taxpayer.
Step 2 - Click on the 'Aggregated TDS Compliance' tab for this purpose.
Step 3 - Choose from the following options:
- By default.
- By fiscal year.
Step 4 - Click 'Submit Request' after making your selection.
Step 5 - Once the request is submitted, you can download the corresponding Excel file from the 'Requested Downloads' section under the 'Downloads' menu.
What is the Request for Resolution Facility?
Taxpayers can resolve their issues through the "Request for Resolution" feature. Follow these steps to use this service-
Step 1 - To access this service, taxpayers must log in to TRACES as a taxpayer using their registered user ID and password.
Step 2 - Click on the 'Request for Resolution' tab.
Step 3 - Choose the category for which you wish to make a resolution request.
Step 4 - Select the relevant assessment year for your request.
Step 5 - Complete and submit the necessary information.
Step 6 - Upon submission, a ticket number will be generated, indicating that the request has been successfully submitted.
Ticket Status on TRACES
Below are the possible outcomes when checking the ticket status on TDS TRACES-
- Open: The ticket is currently with the assessing officer and will be acted upon within the stipulated time frame.
- In Progress: The requestor or Assessing Officer has provided clarifications.
- Clarification Asked: Tax authorities have asked for further clarification. If no response is provided within 30 days, the ticket will be closed.
- Request for Closure: The deductor has provided the requested clarification and sent it to the assessee for closure. If no action is taken within 30 days, the ticket will be automatically closed.