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TDS is a website offered by the income tax department for the TDS Reconciliation Analysis and Correction Enabling System. It is undertaken by the government to ensure that taxpayers pay the tax on time. The website enables the validation and correction of information related to TDS. The website aims to aid both TDS payers and deductors to see and reconcile their TDS payments online in order to submit returns and seek refunds.

Uses of The TRACES Website

  • Users can download and see the 26as traces, which is a consolidated tax credit statement.
  • Users can file TDS/TCS statement corrections
  • Users can view the challan status
  • Taxpayers can verify the status of multiple tax statements online and
  • Taxpayers can file refund requests
  • TDS deductors can check if the PANs for which TDS is deducted are getting credit.
  • TDS deductors can download the consolidated file, the justification report, and Forms 16 and 16A. (Only for TDS deductors only.)
  • A variety of services on the TRACES website provides an easy and completely digital way of performing multiple tax-related operations. They have replaced paper-based systems and have lessened time and effort
  • Rectifications to previously submitted TDS returns can be completed online.
  • OLTAS Challan correction online

Steps to Register to Traces as a Taxpayer

Taxpayers/PAO/Deductors should register on the TRACES website to get access to its online services. Here are the steps to register for Traces.

Step 1: Click on the ‘Register as New User’ option to register

Step 2: You will be redirected to the taxpayer page

Step 3: After typing the required information, click ‘Create Account’. To authenticate this, you will be taken to the confirmation page. You can use the edit tab to update any data displayed on the confirmation screen.

Step 4: After verifying the data, an activation link and activation code will be sent to the applicant’s email address and mobile number.

How to Register for TRACES As a Deductor?

Step 1: Go to the Traces webpage

Step 2: Choose ‘Register as New User’

Step 3: Select ‘Deductor’ as the User type.

Step 4: Fill in all the required details to register as a deductor on TRACES

Step 5: After registering successfully, an activation link will be sent to the registered email address. Separate activation codes will be sent to the registered email address and cellphone number.

Step 6: Click the activation link and type your user ID and activation credentials.

Step 7: Post activation, TRACES will be accessible to the users.

How to Login To Traces?

Step 1: Go to the official portal of Traces. You can see a pop-up as soon as you enter. Click ‘Continue’ at the bottom of the pop-up.

Step 2: Click on ‘Login’ at the top of the left navigation bar.

Step 3: You will be redirected to the page where you have to fill in the login credentials. Enter your Login ID and Password, i.e., your TIN, and then click the Go button

Step 4: Only the ‘Profile menu’ is enabled on the login, click on it.

Step 5: Enter the deductor’s information, such as PAN number, date of birth, and so on. Click submit.

Step 6: Authenticate the details on the confirmation page and click ‘Submit’

Step 7: After successful registration, an activation link will be sent to the registered email address. Separate activation codes will also be sent to the registered email address and cellphone number.

Step 8: Click the activation link and enter the user ID and activation codes

Step 9: After activation, the user can access TRACES

TRACES Justification Report

The TRACES Justification Report consists of details about the defaults or errors encountered while processing the TDS Returns submitted by the deductor. The status of the filed returns should be ‘processed with default’ to download the justification report. As soon as you see errors, submit a correction TDS return to correct the same.

How to Generate a TRACES Compliance Report?

The TDS Compliance Report is a document that gives complete information about defaults or errors across all TANs associated with an entity-level PAN. Here are the steps for the same

Step 1: Log in to TRACES as a taxpayer to start the process

Step 2: Click on the ‘Aggregated TDS Compliance’ tab

Step 3: The user can select from one of the options - Default or fiscal year

Step 4: Click the 'Submit Request' button to continue

Step 5: Once the request has been processed, download the corresponding Excel file from the ‘Requested Downloads’ section in the ‘Downloads’ menu.

What is the Request for Resolution Facility?

Using the “Request for Resolution” feature, taxpayers can put forth their grievances with ease. The following steps help in utilizing this feature.

Step 1: Log in to TRACES as a taxpayer by entering the registered user ID and password

Step 2: Go to the ‘Request for Resolution’ tab.

Step 3: You can then choose the category under which the grievance required to be resolved falls

Step 4: Choose the appropriate assessment year

Step 5: Furnish the necessary information and submit your request

Step 6: A ticket number is generated after the submission. This confirms that your request has been received successfully.

Status of Ticket on TRACES

The following is the status of the ticket on TRACES

  • Open: The ticket has been allocated to an assessing officer who will evaluate it within the said period
  • In Progress: This means that the requestor or assessing officer has provided clarification
  • Clarification Asked: The tax authorities have requested clarification, and if there is no response provided within 30 days, The ticket will be closed.
  • Request For Closure: This shows that the deductor has clarified and has sent the ticket to the assessee for closure. The failure to take work on the ticket within 30 days of raising such a request leads to the automatic closure of the ticket.

FAQs on TDS Traces:

1. Can you download Form 16/16A from the TRACES website?

Yes, you can download Form 16/16A from the TRACES website.

2. How to download 26AS from the TRACES website?

First, give an agreement to ‘Accept and Use’ Form 16/16A that has been generated from TRACES. Subsequently, click ‘Proceed’. Then, click 'View Tax Credit (Form 26AS)' to view the Form 26ASA. Subsequently, choose the 'Assessment Year', and then, select 'View type' (HTML, Text or PDF). To conclude, click on 'View/Download'.

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