The realm of Income Tax comprises an array of components. Of those, Tax Deducted at Source (TDS), and Tax Collected at Source (TCS) hold considerable significance. Hence, to ensure a smooth and hassle-free process of viewing and reconciling these aforementioned taxes, the Income Tax Department introduced TDS TRACES

What is TRACES?

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System. It is an online facility that the Income Tax Department introduced to streamline rectifications of previously filed TDS returns. This way, it does away with the need for filing revised returns, which is both hassling and time-consuming. 

This platform is available for access to taxpayers and deductors, where they can view TDS, and TCS paid, correct details when filing returns, if required, and also seek refunds. Individuals can register with TRACES as a taxpayer, deductor, or Pay and Accounts Office or PAO. 

How to Register with TDS TRACES as a Taxpayer?

Individuals need to register with TRACES in order for gaining access to the different facilities it offers. The registration process for taxpayers involves the following steps – 

Step 1 – Visit website

Firstly, one needs to visit the official website of TRACES (TDS-CPC). Thereby, select “Taxpayer” from options available under “Register as New User” on the homepage. 

Step 2 – Provide details

Following that, the person needs to provide personal information, which includes name, date of birth or incorporation, and PAN, as well as, the verification code. Taxpayers must ensure to input details as per their PAN card. They also need to verify such information with the Income Tax Department’s official account. 

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After filling out the necessary details, click on “Proceed”. Next, alongside these pieces of information, one is required to furnish any of the following details – 

  • TDS/TCS details from Form 26AS or Form 16/16A
  • Details of advance tax, self-assessment tax, and TDS on property paid from the corresponding challan
  • Statement details from Form 26QB

One such necessary details have been provided, click on “Proceed”. Next, the individual needs to provide communication details such as a home address, email ID and mobile number. 

Step 3 – Create an account

Subsequently, the taxpayer needs to set up a password and answer the security question to continue. 

Step 4 – Verify details

The next page will show all the previously-furnished pieces of information. Persons can edit such details, if required, or confirm them to proceed. 

Step 5 – Activate Account

After verification, the activation link and password will be sent to the taxpayer’s registered email ID and mobile number. The person is required to visit that link and enter the code to activate their account, following which they can carry out TDS TRACES login

How to Register with TRACES as a Deductor?

To register as a deductor at the TDS TRACES, individuals need to follow the below-mentioned steps – 

  • Select the “Deductor” option under the “Register as New User” tab and click on proceed.
  • The deductor thereafter needs to provide their TAN, and the verification code mentioned. 
  • The system will auto-populate details such as the Form type, Financial Year, and Quarter. Here, the deductor needs to input a token number or Provisional Receipt Number (PRN) of a legitimate TDS Return. 
  • Next, in Part 1, one is required to provide a valid Challan Identification Number (CIN), BSR code, date of deposit, challan amount, challan serial number, and CD Record Number. 
  • In Part 2, the deductor may enter a maximum of 3 unique PAN-amount combinations. Also, one needs to enter the TDS deposited with decimal places against such PANs. 
  • The deductor will then receive an Authentication code, valid for the previously-stated Financial Year, Quarter and Form Type. 
  • They are then required to enter the Authentication code to proceed to the next step. 
  • Here, such a person needs to fill out necessary details of the organisation, which includes the category of deductor and PAN alongside other pieces of information. 
  • Subsequently, such deductor is required to enter address and communication details, either from the last TDS return statement or TAN Master. 
  • Next, set up a user ID and password. One can refer to the hyperlink to select a user ID. When done, such deductor needs to click on “Create Account”. 
  • The system will then show deductor details. If it’s in line, one can click on “Confirm” or select “Edit” to make corrections. 
  • Following that, the system will display a confirmation message and send an activation link and code to the deductor’s registered email ID and mobile number. 

Once activated, deductors can login to their TDS TRACES account with the user ID and password to download Form 16 from TRACES and other facilities. 

What are the Facilities Available in TDS TRACES?

The services available to taxpayers are:

  • Download of Form 26AS from TRACES
  • Verification of TDS certificate
  • Form 16B can be downloaded
  • One can view or download Aggregated TDS Compliances Report

The facilities that TDS TRACES provides to deductors are:

  • View Challan status
  • Download Form16 from TRACES
  • Download of Justification Report
  • Online correction
  • Check out TDS/TCS credit against a PAN
  • TDS refund

A PAO can view the statement status of TAN that is linked to their AIN. 

How to Check TDS Challan Status on TRACES?

If you own a private company or are a government deductor, you would always need to import and match your TDS challan details when you are filing quarterly TDS or TCS returns. The same can be done by making TRACES login to your account. A deductor can see the status of a challan on the TRACES website when the challan is either unclaimed or claimed. The challan status can be viewed by providing either the BIN (Book Identification Number) or CIN (Challan Identification Number) details or by the period of payment.

Step 1: Login to TRACES portal

Step 2: Once logged in, go to the Statement/Payment link that you will find in the top menu. Click on the drop-down menu from this link and click on Challan status.

Step 3: Checking the Challan status using CIN and BIN

Using CIN: To check the challan status using CIN, select the CIN option, then select the Period of Payment and click on go to proceed further. On the next screen, you will find the list of Challans with the status information.

Using BIN: You can also check the Challan status using BIN by selecting the BIN option and then choosing Period of Payment and then click on Go. Enter the BIN details in the next screen.

Once you have entered the details, you can click on the ‘View Consumption Details’ to view the Amount Consumption Details.

Nonetheless, entities can also utilise the TDS TRACES website to file for rectifications in TDS and/or TCS statements, correct previous TDS returns, as well as tracking taxes that have been deducted but not deposited with the Government Treasury.