P Chidambaram to launch CPC (TDS) tomorrow

NEW DELHI: Finance Minister P Chidambaram will launch the Centralised Processing Cell for Tax Deducted at Source (CPC-TDS) tomorrow, a move likely to ease the compliance procedure for taxpayers.

"The CPC (TDS) will provide the tax deductors, taxpayers and the assessing officers a wide range of online services related to TDS through a functionality designated TDS Reconciliation, Analysis and Correction Enabling System (TRACES)," a statement issued by Finance Ministry said.

TRACES will provide a bouquet of services like viewing and downloading of Form 26AS and downloading of consolidated files for filing of correction statements. This will facilitate proper reconciliation between credit of taxes paid by deductors and claimed by deductees, it said.

Further, TRACES will also enable multiple modes of communication to reach out to the deductors and deductees for immediate correction, reconciliation and matching of TDS payments.

Moreover, banks, being the most important Tax Deductors will now have the facility to file correction statements online to minimise the difficulties faced by tax deductees in claiming credit of tax deducted at source.

"It is expected that this facility will, to a large extent, ameliorate the problem faced by tax payers of mismatch in credit of tax deducted and claimed in the return of income," the Ministry said.

The CPC (TDS) will be situated at Aayakar Bhawan, Sector-3, Vaishali, Ghaziabad (UP).