TDS (Tax Deduction at Source) was initiated with the intention to collect tax from the source itself. In accordance with the notion, any individual or firm making a payment which exceeds a particular threshold limitation need to deduct the prescribed tax amount from the origin prior to making the payment. The rate of taxation or the threshold limitation is decided by the Income Tax department. The individual or firm making the payment minus the TDS is known as the ‘Deductor’ and also the individual or business receiving stated payment is called the ‘Deductee’.
Within this procedure, it’s the obligation of the deductor to subtract the TDS prior to making the payment and afterwards remitting the deducted amount to the Central Government. Even the deductee, on the other hand, can assert the deducted amount at a later time period by submitting ITR. In a sense, TDS is a improvement tax that has to be paid periodically.
Since the Government of India was digitalising every section lately, the Income Tax department pioneered the TRACES site to arrange and control the TDS stakeholders.
What is TRACES:
TRACES stands for TDS Reconciliation Analysis and Correction Enabling System .It’s an internet portal which functions as a port for the stakeholders linked to the TDS platform to perform their tasks hassle-free. The site enables the screening of challan status & announcement standing, downloading of Conso document, submitting a refund request, downloading Justification Report and type 16/16A. Additionally, it allows the user to look at the yearly tax credit announcements (i.e. Type 26AS).
Working Area: Pan India
Duration: 7 Working Days
Partners: Aadhar/Voter/Passport, Passport Size Photos
Place of Registration: Electricity Bill/Property Tax, Rental Agreement/NOC
*Account Opening: We just assist you in opening Current Account in one of our partner’s bank.
Each of the services provided by TRACES is categorized into three big classes:
- Deductor services
- Taxpayer services
- PAO (Pay and Accounts Office) services
Deductors/Collectors, Taxpayers and PAOs need to register in the TRACES website in order to be able to access and utilise the services provided for each category.
Services for Diductors/Collectors:
- Deductors/Collectors will be able to:
- Check the status of challans.
- View TDS/TCS credit
- Verify PAN of the Taxpayers related to the deductor/collector
- Make online corrections
Services for Taxpayers:
Taxpayers can utilise the following services:
- View the annual tax credit for the TDS/TCS amount deducted by deductors (Form 26AS)
- Verify if the deductor has filed any statement for a certain FY or Quarter and see if their PAN is added in the deductor’s statement
- They can also download Form 16B as a buyer
- View and download aggregated TDS compliances report
Services for PAOs:
There’s a Dash for PAOs Which Offers a summary of Information Pertaining to their Drawing and Disbursing Officer (DDO)
Watch the announcement standing for TAN (Tax deduction and set Account Number) connected to their Account Office Identification Number (AIN)