What is Traces?
TRACES (TDS Reconciliation, Analysis, and Correction Enabling System) is a web-based platform provided by the Income Tax Department to facilitate the administration of Tax Deducted at Source (TDS). It is designed to streamline TDS-related processes and help users efficiently manage various aspects of TDS compliance.
Key Functionalities for Deductors in TRACES:
Registration and Login: Allows deductors to register on the platform and log in to access their TDS-related information.
Add Sub-users for a TAN: Deductors can create sub-user accounts under their TAN (Tax Deduction and Collection Account Number) for authorized individuals to manage TDS tasks.
View Challan Status / Statement Status / Default Summary: Provides access to the status of challans, statement submission status, and a summary of defaults.
Download Conso File / Justification Report: Deductors can download the Consolidated File (Conso File) and Justification Report, which are helpful for TDS filing reconciliation.
PAN Verification / Download Consolidated TAN PAN File: Allows for PAN verification and the download of a consolidated file containing TAN and PAN details.
197 Certificate Validation: Enables validation of certificates issued under Section 197, which authorizes lower or nil TDS deduction.
Online Correction: Deductors can make online corrections to previously filed TDS returns.
Declaration for Non-Filing of Statement: Deductors can make a declaration if they have not filed a TDS statement for a specific period.
Download Form 16 / 16A / 27D / 16B: Deductors can download various TDS-related forms such as Form 16 (Certificate of TDS), Form 16A (for TDS on income other than salary), Form 27D (TDS Certificate for Non-Salary Payments), and Form 16B (for TDS on Sale of Property).
Provide Feedback: Allows deductors to give feedback on the platform’s functionality or any issues faced.
Download Forms: Deductors can download forms relevant to TDS filing and compliance.
Manage Profile: Deductors can update and manage their personal and business information associated with their TAN.
Dashboard View: Offers an overview of TDS-related activities and updates in a user-friendly format.
Refund Functionality: Provides the option to request refunds for excess TDS paid.
Request for Resolution: Deductors can raise requests for the resolution of any issues or discrepancies related to TDS.
Declaration to Deposit Lower TDS: Deductors can declare their intent to deposit lower TDS if applicable, as authorized by relevant certificates.
TRACES simplifies and streamlines the TDS filing process, making it easier for deductors to stay compliant with tax regulations and manage their TDS obligations efficiently.