TRACES – The Latest Income Tax E-Venture for your TDS Hassles

TRACES is TDS Reconciliation Analysis and Correction Enabling System. Sounds good and sophiscated. It is a web-based application of the Income Tax Department that provides an interface to all stakeholders associated with TDS administration. It enables viewing of challan status, downloading of NSDL Conso File, Justification Report and Form 16 / 16A as well as viewing of annual tax credit statements (Form 26AS).

Highlights of the Portal

  • Download NSDL Conso File
  • Download Justification Report
  • View / Download Form 26AS
  • Download Form 16 / 16A
  • View Challan Status
  • Manage Profile

Website Link: https://www.tdscpc.gov.in/

FAQ’s on TRACES

What is PAN?

Permanent Account Number (PAN) is a ten-digit alpha-numeric number, issued by the Income Tax Department. Each assessee (e.g., individual, firm, company, etc.) is issued a unique PAN.
PAN enables department to link all transactions of the ‘person’ with the department. These transactions include tax payments, TDS / TCS credits, returns of income / wealth / gift / FBT, specified transactions, correspondence, etc. PAN, thus, acts as an identifier for the ‘person’ with the tax department.

  • PAN structure is as follows: AAAAA9999A. First five characters are letters, next four are numerals, last is a character letter
  • If PAN does not follow the above structure, PAN will be shown as invalid
  • The fourth character of the PAN must be one of the following, depending on the type of assessee:
    • C – Company
    • P – Person
    • H – HUF (Hindu Undivided Family)
    • F – Firm
    • A – Association of Persons (AOP)
    • T – AOP (Trust)
    • B – Body of Individuals (BOI)
    • L – Local Authority
    • J – Artificial Judicial Person
    • G – Government
  • The fifth character of the PAN is the first character of the surname / last name of the person (in case of personal PAN card, the fourth character is “P”) or of the name of Entity / Trust / Society / Organisation

Click here for further details on PAN

What is TAN ?

TAN or Tax Deduction and Collection Account Number is a unique ten-digit alpha-numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS statements.
To facilitate deductors find their new TAN, ITD has now introduced a search facility on their website (www.incometaxindia.gov.in). Through this facility, deductors can search on name and old TAN to find the new TAN. Deductors are advised to find new TAN from this site before it is incorporated in their e-TDS statement to avoid any inconvenience at the time of furnishing e-TDS statements.
For more information, visit TIN.

What are the types of TAN applications?

There are two types of TAN Applications:

  • Application for issuance of new TAN (Form 49B)
This application form should be used when deductor has never applied for a TAN or does not have a TAN.
  • Form for change or correction in TAN data for allotted TAN
This application form should be used by deductors in case they want a change or correction in data associated with their TAN.

How to apply for new TAN?

Application Procedure

  • An applicant will fill Form 49B online and submit the form. Deductor may either make an online application through TIN (Tax Information Network) or submit physical TAN application to any TIN-Facilitation Center (TIN-FC) of NSDL
  • If there are any errors, rectify and re-submit the form
  • Confirmation screen with data filled by the applicant will be displayed
  • Applicant may either edit or confirm the same

Acknowledgment

  • On confirmation, an acknowledgment screen will be displayed. The acknowledgment consists of
    • A unique 14-digit acknowledgment number
    • Status of applicant
    • Name of applicant
    • Contact details (address, e-mail and telephone number)
    • Payment details
    • Space for signature
  • Applicant shall save and print this acknowledgment
  • Signature / left thumb impression should only be within the box provided in the acknowledgment. In case of applicants other than ‘Individuals’, authorised signatory shall sign the acknowledgment and affix appropriate seal or stamp
  • Left hand thumb impression, if used, should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp

Click here for further details on TAN application. For detailed instructions, visit TIN.

How can I track the status of my TAN application?

Applicants may track status of their TAN application using 14-digit unique Acknowledgment Number after three days of application using the status track facility on TIN.

How is TAN issued?

Applications for Form 49B received by NSDL are digitized and forwarded to ITD. ITD will issue the TAN which will be intimated to NSDL online and NSDL will then issue TAN letter to applicant.

Why is it necessary to have TAN?

The provisions of Section 203A of the Income Tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS / TCS / Annual Information Returns, payment challans and certificates to be issued. Deductor cannot file TDS / TCS statements and deposit challans for TDS / TCS payments in banks without TAN. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of ` 10,000/-.

Who is required to file e-TDS / e-TCS statement?

As per Income Tax Act, 1961, all corporate and government deductors / collectors are mandatorily required to file their TDS / TCS statements on electronic media (i.e. e-TDS / TCS statements). However, deductors / collectors other than corporate / government can file either in physical or in electronic form.

Who is required to file e-TDS / e-TCS statement?

As per Income Tax Act, 1961, all corporate and government deductors / collectors are mandatorily required to file their TDS / TCS statements on electronic media (i.e. e-TDS / TCS statements). However, deductors / collectors other than corporate / government can file either in physical or in electronic form.
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What is OLTAS?

Income Tax Department’s initiative to receive information and maintain records of tax paid through banks through online upload of challan details is termed as OLTAS (Online Tax Accounting System).
For more information on OLTAS, visit TIN.

Which banks and bank branches are linked to OLTAS?

Tax payer can select a state and location to get the list of Authorised Bank branches for payment of Direct Tax at the nearest location.
Click here for list of participating bank branches for services / OLTAS / Direct Tax Payment.

How can I correct a challan in OLTAS?

The fields that can be corrected by deductor through bank are tabulated below:

Sr. No.
Type of Correction on Challan
Period for Correction Request (in days)
1 PAN / TAN Within 7 days from challan deposit date
2 Assessment Year Within 7 days from challan deposit date
3 Major Head Within 3 months from challan deposit date
4 Minor Head Within 3 months form challan deposit date
5 Nature of Payment Within 3 months from challan deposit date
6 Total Amount Within 7 days from challan deposit date

Note:

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CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) is Fellow Member of ICAI, Certified IFRS & Business Valuation from ACCA UK and is Practising Chartered Accountant with 8 Years plus of Rich Experience in Audit, GST, Income Tax, DGFT, Valuation, Strategic Advisory, Matters of FEMA, FDI, NCLT, RERA, ROC, SEBI, RBI, M&A, Fundraising, Startups etc as Founder of AGA, Chartered Accountants. AGA Works in wholesome business solutions right from scratch of Company Incorporation to Compliances all under One Roof. He also takes interest in being Virtual Chief Financial Officer (CFO) for Small and Medium Enterprises for Guiding them with All Business, Tax & Strategic Business Decision Making . To Know More, Learn here or contact us at ankitgulgulia@gmail.com

CA Ankit Gulgulia (Jain)
About CA Ankit Gulgulia (Jain) 1116 Articles
CA Ankit Gulgulia (Jain) is Fellow Member of ICAI, Certified IFRS & Business Valuation from ACCA UK and is Practising Chartered Accountant with 8 Years plus of Rich Experience in Audit, GST, Income Tax, DGFT, Valuation, Strategic Advisory, Matters of FEMA, FDI, NCLT, RERA, ROC, SEBI, RBI, M&A, Fundraising, Startups etc as Founder of AGA, Chartered Accountants. AGA Works in wholesome business solutions right from scratch of Company Incorporation to Compliances all under One Roof. He also takes interest in being Virtual Chief Financial Officer (CFO) for Small and Medium Enterprises for Guiding them with All Business, Tax & Strategic Business Decision Making . To Know More, Learn here or contact us at ankitgulgulia@gmail.com

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