All there is to know about TRACES

Traces (TDS Reconciliation Analysis and Correction Enabling System) is an online facility provided by the Income Tax Department at www.tdscpc.gov.in. The objective of this facility is to enable both payers and deductors of TDS to view taxes paid online, reconcile them for purposes of filing returns and seeking refunds.

Registration

Individual tax payers who like to view taxes deducted on their incomes have to first register by providing details of their PAN, email, and mobile numbers and create on online account with a username and password. The system then generates an email for activating the account.

Facilities

Users can view all transactions where taxes have been deducted at source, including salaries. Tax that has been collected on behalf of the taxpayer, including advance taxes paid and self-assessment taxes deposited can be viewed by logging in.

Downloads

Form 16/16A can be downloaded from Traces, which is an acceptable proof of taxes deducted at source. Annual tax statement (Form 26AS) can also be downloaded to show all taxes paid including advance taxes and self-assessment.

AIR

The Tax Information Network maintained by the government requires specified entities to file details of specific transactions as an Annual Information Report (AIR). These include transactions in cash, property, shares, bonds, mutual funds and cred- it cards. Taxpayers can view and download the AIR pertaining to their PAN from Traces.



Points to note

- Securities Transaction Tax paid can be downloaded in a consolidated format and is reflected in Form 26AS.

- If tax has been deducted but not paid by the deductor to the government, Traces enables identifying and complaining about such discrepancy.

- Internet banking accounts can be linked to Traces to enable logging in and reconciling taxes paid.



The content is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.