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

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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?

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:

Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1, 2011
Any correction request initiated by deductor after the time limit specified above shall be rejected by bank

Fields that can be corrected and the entity authorized to carry out corrections on challans with challan deposit date less than September 1, 2011 are as below:

Sr. No.	Type of Correction on Challan	To Be Performed By
1	PAN / TAN	Assessing Officer
2	Assessment Year	Assessing Officer
3	Major Head	Assessing Officer / Bank
4	Minor Head	Assessing Officer
5	Nature of Payment	Assessing Officer
6	Total Amount	Bank
7	Name	Bank

What is Form 26AS?

As per Section 203AA of the Income Tax Act, 1961 , Form 26AS is a consolidated statement issued to a PAN holder with respect to a financial year. As per Rule 31AB of the Income Tax Rules, it will include details of:

Tax deducted at source (TDS)
Tax collected at source (TCS)
Advance tax / Self-Assessment Tax / Regular Assessment Tax etc. deposited in the bank by tax payers (PAN holders)
Refund received during the financial year
Details of transactions in Mutual Fund, Shares and Bonds, etc. (as reported by AIR filer)

What are the details available in TDS certificate (Form 16 / 16A)?

The details available are as below:

Name / address / TAN of Deductor
Name / address / PAN of Tax Payer
Certificate Number
Summary of payment made by deductor
Summary of tax deducted at source in respect of tax payer
Details of tax deducted and deposited in Central Government account through challan / Book Adjustment (in case of Government deductor)
Details of tax deducted and deposited in Central Government account through challan (in case of Non-Government deductor)

Deductor Related
A Deductor is a specified person who is responsible to deduct tax on particular types of payments being made by them as per the provisions of the Income Tax Act, 1961.
As per Income Tax Act, 1961, all corporate and government deductors / collectors are compulsorily 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.
TRACES enables deductors / collectors to view status of challans and TDS-TCS credit for a PAN. They can also download NSDL Conso File, Form 16 / 16A and Justification Report after logging in to their account on TRACES.
Functionalities for Deductors through TRACES

Registration on TRACES
Add sub-users for a TAN
View challan status
Download NSDL Conso File
Download Justification Report
PAN Verification

Download Form 16 / 16A
Provide Feedback
Download forms and file formats
Manage Profile
Download Consolidated TAN-PAN File
Dashboard View

Tax Payers
TRACES enables a PAN holder to register and view tax credit (Form 26AS) online.
Details in Form 26AS

Details of tax deducted on behalf of the tax payer by deductors
Details of tax collected on behalf of the tax payer by collectors
Advance tax / self-assessment tax / regular assessment tax etc. deposited by the tax payers (PAN holders)
Refund received during the financial year
Details of transactions in Mutual Fund, Shares and Bonds, etc. (as reported by AIR filer)

Functionalities for Tax Payers through TRACES

Registration and Login
View Form 26AS
View and edit profile
Provide Feedback

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