Correction Return 1. If the employer does not deduct tax and employee also does not pay his due tax, who will be held responsible for tax payment? The ultimate responsibility to pay tax rests on the person who has earned income. If the employee deposits such tax then the employer will be liable for interest and penalty for failure to deduct tax. 2. What is quarterly e-TDS return statement? TDS returns filed in electronic format under section 200(3)/206C as amended by Finance act, 2005, are quarterly TDS statement. As per the Income tax act, these quarterly statements are required to be furnished from F.Y 2005-06 onwards. The form used for quarterly e -TDS returns are Form 24Q, 26Q and 27Q. 3. Is the Challan Identification Number compulsory? Yes. Challan Identification Number is necessary for all non-Government deductors. 4. What happens in a situation where a deductor does not have TAN or has a TAN in old format? The Deductor will have to file an application in Form 49B at the TIN Facilitation Centre along with application fee (Rs 50/-) for TAN. 5. After I prepare my e-TDS/TCS return, is there any way I can check/verify whether it conforms to the prescribed data structure (file format)? Yes, after you have prepared your e-TDS/TCS return you can check/verify the same by using the File Validation Utility (FVU). This utility is freely downloadable from the NSDL-TIN website. 6. What is File Validation Utility (FVU)? FVU is a format developed by NSDL, which is used to check whether the e-TDS/TCS return file contains any format level errors. If there are no errors in the e-TDS/TCS return file, file validation successful message will be displayed. 7. Can e-TDS return be filed online? Yes e-return file can be filed online with digital signature of authorized signatory at the NSDL website. 8. What are the different types of corrections that can be made? The following are the corrections that you can make to a regular TDS returns:- Update deductor details such as name, address of deductor. This type of correction is known as C1. Update challan details such as challan number, BSR code and challan amount. This type of correction is known as C2. Update/ delete or add deductee details. This type of correction is known as C3. Add or delete salary details record. This type of correction is known as C4. Update PAN of the deductee / employee in the deductee or salary details. This correction is known as C5. Add a new challan and underlying deductees. This type of correction is known as C9. 9. Is any utility available for preparing corrected e-TDS statement? Yes, there are many software providers who have developed software’s for preparation of corrected e-TDS statements. Visit www.relyonsoft.com for a software on correction of e-TDS statements. 10. How can I delete a deductee record in the corrected e-TDS statement? Feature to delete the deductee records has been discontinued and as a result delete option available under “Updation mode for Deductee” has been removed. In case the user wishes to nullify a deductee record/ transaction, deductor/ collector is required to update the amount related fields to “0” (zero) and add new record with updated values. 11. How can I download justification report for my TAN? Login to TRACES as deductor and submit download request for this report under ‘Request for Justification Report Download’ in ‘Defaults’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab. 12. I am not able to download justification report. Why? Justification Reports can be downloaded till Financial Year 2011-12. Justification report will not be available if your statement has no defaults. 13. Short deduction 14. When I provide my TAN and Token Number, I get the message 'Invalid details'. Why? Token Number (Provisional Receipt Number) provided must be of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012. 15. Sometimes when I login to TRACES, I always get the message, "Application is down for planned maintenance". What may be the reason? The cookies on your browser may be using the cached data to display this message and you may need to clear the cookies and reload the website. Steps to clear cookies are given below. You can clear cookies by pressing ‘Ctrl+Shift+Del’ (Control+Shift+Delete) keys on your keyboard together. Step-by-step instructions for different browsers are given below: Internet Explorer Click on ‘Tools’ option from your browser toolbar Go to ‘Internet Options’ Under ‘General’ Tab, ‘Browsing History’ section, click on ‘Delete’ In the dialog box that appears, select ‘Cookies and Website Data’ and click on ‘Delete’ Firefox Click on ‘Tools’ option from your browser toolbar Click on ‘Clear Recent History’ option In the dialog box that appears, there is a ‘Time Range’ dropdown. Select ‘Everything’ Click on ‘Clear Now’ to delete the cookies Chrome Click the Chrome menu (the icon with three vertical lines) on the browser toolbar Select ‘Tools’ Select ‘Clear Browsing Data’ In the dialog box that appears, select checkboxes for the types of information that you want to remove Use the menu at the top to select the amount of data that you want to delete. Select beginning of time to delete everything Click ‘Clear Browsing Data’ 16. 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 Rs.10, 000/- 17. Registration and login 18. Who can register on TRACES? As of now, Deductors and Tax Payers can register on TRACES. 19. Which address should be mentioned during registration? Communication address of the organization (the TAN being registered) should be mentioned. 20. How do I activate my TRACES account after registration? After completing registration, you will receive an activation link and activation code on your email id registered with TRACES. You will also receive an activation code through SMS on your mobile number registered with TRACES. Click on the activation link and enter User Id and the activation codes received through email and SMS and proceed. After successful activation, you can log in to TRACES. 21. How do I activate my account? After completing registration, you will receive an activation link and activation code on your email id registered with TRACES. You will also receive an activation code through SMS on your mobile number registered with TRACES. Click on the activation link and enter User Id and the activation codes received through email and SMS and proceed. After successful activation, you can log in to TRACES. 22. How is Admin User account created for a TAN on TRACES? When a TAN registers on TRACES for the first time, Admin User account will be created. Admin user can then create sub-users for the TAN. 23. Is it possible to de-register an Admin User account (for a TAN) on TRACES? No 24. Sub User Account 25. Can I edit my profile details in TRACES? Yes. Profile for a TAN can be edited by Admin User after logging in to their account on TRACES. Organization, communication and sub-user details can be updated in profile section. 26. How do I change my Password? Password can be changed by accessing ‘Profile’ in TRACES Following are the steps to change your login password: Login TRACES using your existing User Id and Password Click on ‘Profile’ in top menu Select ‘Change Password’ option Enter old password, new password, confirm new password and save Email notification will be sent to your registered Email Id intimating change in password 27. I am unable to download Form 16 / 16A as the number of PANs for which Form 16 / 16A were submitted was higher, however the PDFs generated were less. What should I do? Check the status of the PANs for which Form 16 / 16A has not been generated. These PANs might be with inactive status or not present in the TDS statement filed. 28. Registered user on TRACES has updated the communication and address details on TRACES. However while downloading Form 16A, it shows a different address. How can deductor edit address details in Form 16A? Details updated in ‘Profile’ section of your TRACES account will be saved only in TRACES and will not be updated in TAN database. To change details in TAN database, submit TAN change request form (Form 49B) at www.tin-nsdl.com. 29. While converting the file by using PDF converter, I am getting an error, "The file is tampered". How to rectify the error? Install 1.3L version of TRACES PDF converter. 30. While trying to download the TRACES PDF Converter Utility, I am getting an error message, "Unable to access the Jar File". What should I do? You need to install JRE 1.7v (JAVA application). 31. Statement Status 32. Validation screen and authentication code E-Return / Regular Return 1. Is TDS relevant for me as a businessman? Yes. Payments may be made to you after deducting TDS. You can adjust this against your final tax liability. You are also required to consider TDS while making business payments. Failure to do so will result in disallowance of business expenditure and can be taxed as total income. 2. I have made some deposits with a bank on which annual interest are around Rs.15000. My income is below taxable limit. The banker wants to deduct tax. What do I do? You can file a self-declaration to the banker in form 15H stating that your income is below taxable limit. The form is available with your banker, the local Income-Tax office and can be downloaded from the website www.incometaxindia.gov.in. This form should be filed before the interests begin to accrue in the fixed deposit account, since the declaration has no retrospective effect. 3. If medi claim policy has been taken by the company. An accident has occurred and employee has paid all payments to the hospital. The Company receives cheque from Insurance Company and pays it to the employee after deducting TDS. Is it correct? No, there is no TDS on reimbursement of Expenses. 4. What are TDS Certificates? A TDS certificate is to be issued by the person deducting tax at source. Every person deducting tax is duty bound to furnish this certificate to the person from whose payment the tax is being deducted. The deductee should produce the details of this certificate, during the regular assessment of income tax, to adjust the amount of TDS against the Tax payable by the Deductee [assessee]. 5. What is NSDL conso file? While filing correction for a particular Financial Year, Quarter and Form Type, conso file provides details about all the previous corrections made in the relevant statement. 6. What are the prerequisites for furnishing corrected e-TDS statement? Check the status of the regular statement on the TIN website by entering the TAN and PRN at https://onlineservices.tin.nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp. After verifying the status, download the below files for making corrections. NSDL consolidated file . Justification report . 7. How many times can I furnish a correction e-TDS statement? A correction TDS/TCS statement can be furnished multiple times to incorporate changes in the regular TDS/TCS statement whereas a regular TDS/TCS statement will be accepted at the TIN central system only once. 8. How many times can I update the PAN of the deductee? Invalid PAN of a deductee can be changed once to a Structurally valid PAN. Structurally valid PAN of a deductee in the regular statement can be updated to another structurally valid PAN only once with the change limited to only 2 alphabet and 2 digits in the PAN. 9. What is the procedure for calculating interest on late deduction? You have to deposit late deduction interest @ 1% per month or part of the month from the date of payment / credit to deductee till date of deduction. Calculation No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012 10000*1%*1(Months) =100.00 10. How much amount do I pay for intimation received on Short Payment with Provisional Interest? Provisional interest is calculated till the date of processing of statement. Deposit principal amount of short payment along with interest @ 1.5% per month from date of deduction till date of deposit and file the correction for the same. 11. How much amount do I pay for intimation received on Short Deduction with provisional interest? Deposit principal amount of short payment along with interest @ 1 % per month from date of deduction till date of deposit and file the correction for the same. 12. What should I do on receipt of demand notice u/s 234E Late Filing? The default amount will have to be deposited through challan no. 281. Download conso file from TRACES for filing correction and tag the paid challan detail without adding any deductee records. While filing correction, fill up the fee amount in ‘Fee’ column in challan detail. 13. Downloads for deductor 14. What is TAN Registration Number? TAN Registration Number is provided by TIN when TAN is registered on TIN. 15. What are the types of TAN application? 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. 16. What do I do for Error: 'Invalid details' / 'Your TAN is not available' in Step–1 of Registration? Following could be the reasons for getting ‘Invalid Details’ or ‘Your TAN is not available’ error: You have not filed any statement in last eight quarters You might have not filed any of your statement electronically If activation link and codes are re-sent, will the 24 hour deadline for activation be extended? No. The deadline will remain the same, i.e., 24 hours from the date of registration. 17. What is Token Number or Provisional Receipt Number (PRN)? Token Number is a 15-digit number generated when a statement is filed by deductor. 18. I have entered incorrect communication details (Email Id or Mobile Number) during registration. What should I do now as I am not able to activate / login to my TRACES account? Please wait for 24 hours for your account to be deactivated and try again. Your registration process is valid only for 24 hours and you must activate your account within this time using the activation codes sent through Email and SMS. During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on ‘Edit’ to change your details. 19. How can I ensure that I have entered correct communication details (Email Id or Mobile Number) during registration? Can I edit this information before submitting my registration form? During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on ‘Edit’ to change your details. 20. How can I login to TRACES? Click on ‘Login’ on TRACES home page, enter your User Id and password and submit. 21. I am a registered sub-user but am not able to login to TRACES. What could be the possible reasons for unsuccessful login? If you have not logged in to TRACES for two consecutive quarters in a financial year, your account would have been deleted. Contact the Admin User for your TAN for adding you again as a sub-user If you have forgotten your User Id / Password, you may use ‘Forgot User Id’ or ‘Forgot Password’ link to retrieve If you have entered incorrect login details for five consecutive times within 24 hours, your account would be locked out. Wait for one hour for account to unlock and try logging again 22. What if I forget my password for logging in to TRACES? Password can be reset by using Forgot Password process. Follow the steps as given below: Click on ‘Forgot Password?’ link in TRACES home page or login page Select ‘Type of User’ as deductor Enter details in Step-1 and Step-2 of the form In Step-3, registered mobile number of the deductor as in TRACES profile will be displayed. User can edit the mobile number on the screen On clicking ‘Proceed’, One-Time Password (OTP) will be sent to the mobile number Enter OTP and submit Enter new password in Step-4 and submit. Password will be changed for your account Email notification will be sent to registered email Id intimating change in password 23. Can I change User Id for my TRACES account? Yes. User Id for deductor can be changed by using Forgot User Id process. 24. I am a registered user at TIN but I have forgotten my User Id and / or Password. How do I register on TRACES? If you are not able to register on TRACES using your TIN User Id and Password (for your TAN Account), please register as a new user. Click on ‘Register as New User’, select type of user as ‘Deductor’ and proceed. This will create your new profile as deductor in TRACES and you will be able to login to TRACES after you activate the account. 25. Admin User Account 26. Which are the fields that cannot be changed by Admin User in 'Profile'? The following fields cannot be changed for a deductor after user is registered on TRACES: Type of User User Id TAN of Deductor Name of Deductor 27. Can Admin User update PAN, Name or Date of Birth of sub-user? No. PAN of sub-user cannot be changed. Name and Date of Birth can be updated from PAN database by selecting a sub-user row and clicking on ‘Update from PAN Master’ under ‘User Management’ in ‘Profile’. PAN, Name and Date of Birth of sub-user cannot be manually changed by Admin User. 28. How to create a sub-user? Steps to create or add a sub-user are as below: Login to TRACES as Admin User and click on ‘Profile’ Under ‘User Management’, click on ‘Add Sub-User’ Enter PAN and Date of Birth of sub-user and proceed Name of sub-user will be auto-populated from PAN database based on PAN and Date of Birth of sub-user Enter User Id and password for sub-user and click on ‘Add’ Sub-user will be created for the TAN 29. Is it required for a sub user to activate their account? No. Account activation is only for Admin Users and not required for sub-users. 30. Can I make changes or correction in PAN from TRACES? No. Visit TIN for any changes to your PAN details. 31. Will the changes done in TRACES to my profile be updated in PAN or TAN database? No. Details updated in TRACES will be used only for TDS CPC purposes and will not be updated in PAN or TAN database. Visit TIN for any changes to your PAN / TAN details. 32. Form 16 is issued on deduction of tax by the employer on behalf of the employee under section 192 of IT Act, 1961. Form 16A is issued if the deduction of tax is under any other provision of Chapter XVII-B of IT Act.These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers u/s 203 of IT Act, 1961. 33. Is there any format for these certificates? Form 16 / 16A are issued as per the provisions of Rule 31(1). 34. I have worked with different branch offices during the financial year. How will information for Part B appear in my Form 16? Part B information will be issued by the employer. TDS CPC will provide Form 16 containing only Part A details. 35. What are the guidelines for an employer to deduct TDS and issue Form16? Following are the guidelines for an employer to deduct TDS and issue Form 16: Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any Employer has to consider the declaration before deducting TDS from salary Fill Annexure II for all employees who work or worked for any period of time during the current financial ye Issue Form 16 to all the employees It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer 36. Download /KYC 37. How can I request for Form 16 / 16A? Login to TRACES as deductor and submit download request for Form 16 / 16A under ‘Downloads’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab. Text file will be provided containing details of all requested PANs. User must convert this text file to PDF using ‘TRACES PDF Generation Utility’. This utility will convert the text file into individual PDFs for each PAN. Deductor can also opt to digitally sign the PDFs while converting. 38. What are the editable fields in TDS certificate downloaded from TRACES? TDS certificates downloaded from TRACES are non-editable. 39. How can I edit or add detail of authorized person in Form 16 / Form 16A? Details of authorized person can be updated in ‘Profile’ section of deductor’s account in TRACES. 40. How do I navigate to landing (Welcome) page from any other page? Click on ‘My Home’ in the menu bar to navigate to your landing page. 41. What is Authentication Code? Authentication code is generated when you clear validation details for a statement (KYC) for certain functionalities such as Download Form 16 / 16A, Download NSDL Conso File, Download Justification Report, etc. Authentication code generated for a particular statement will be valid for the calendar day (i.e., an authentication code generated on 10-Jul-2013 can be used only on 10-Jul-2013 to clear validation details for the same statement. It will not be valid the next day). Form 16 / 16 A / 27 D 1. What can I do if I am unable to get the TDS certificate - Form 16 or Form 16A? It is the duty of every person deducting tax to issue TDS certificate. In spite of your asking if you are denied the certificate then there is a chance that the tax deducted has not been deposited by the Deductor to the government account. Please inform the department [TRACES] which will then do the needful. 2. In case the deductee comes back stating that the original TDS certificate is lost, whether a duplicate certificate can be issued? Yes. The deductor will have to issue the certificate in a plain paper giving necessary details of deduction and remittance. 3. What is Form 26AS? The annual statement will be issued for all tax deducted and tax collected at source from F.Y 2005-06 onwards after the expiry of the financial year u/s 203AA. This statement is known as Form 26AS. 4. What are the forms for issuing TDS certificates? Types of TDS certificates: Salaries: – In case of Salaries, the certificate should be issued in FORM 16 containing the Tax computation details and the Tax deducted & Paid details. This refers to the details submitted via Form 24Q. Non-salaries:- In case of Non-Salaries, the certificate should be issued in FORM 16A containing the Tax deducted & Paid details. Separate certificates should be prepared for each Section [nature of payment]. This refers to the details submitted via Form 26Q and 27Q. 5. Will the TIN-FC give any acknowledgment/receipt after acceptance of e-TDS/TCS return? Yes, TIN-FC will issue a Provisional Receipt in case e-TDS/TCS return file is valid and accepted by the TIN-FC. 6. Why should I furnish correction returns statement? In case of inconsistency in the furnished regular TDS statement, such as incorrect challan details or PAN details, the tax credit will not reflect in the Form 26AS. 7. Will TIN-FC give any acknowledgment/ receipt after acceptance of corrected e -TDS statement? Yes, TIN-FC will issue a Provisional Receipt in case corrected e-TDS/TCS return file is valid and accepted by the TIN-FC. The Provisional Receipt issued by TIN-FC is deemed to be the proof of corrected e-TDS/TCS return filed by you. Also a Receipt Number will be provided which will be displayed on TDS Certificate. 8. How can I update a challan? You can update any of the details provided in the challan like CIN details, amounts etc. 9. Can I update the assessment year of a regular TDS return by filing correction returns? No, the fields TAN, Form No., Quarter, FY and AY quoted in a regular statement cannot be updated by furnishing a correction statement. 10. TRACES Related FAQ'S 11. Is it mandatory to download justification report on receipt of demand notice u/s 200A? No. However, justification report can be downloaded to know the default calculation. 12. Whom should I contact for justification report related issues? Write an e-mail to contactus@tdscpc.gov.in along with justification report queries. 13. What is the procedure of calculating interest on late payment? Deposit late payment interest @ 1.5% per month or part of the month from the date of deduction till date of deposit. Calculation No. of months in Defaults = 3 i.e., Mar-12 to May-12 4000*1.5%*3(Months) =180.00 14. 15. While filing the correction statement while quoting the late deduction interest amount in “other” column. How do I rectify? ‘Deductor can file a correction statement, delete the amount from ‘Other’ column and mention interest amount in interest column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. You also need to mention demand amount of interest in second last column of interest in challan details. 16. Is the rounding off under section 288B allowed at the transaction level? The system will not allow rounding off under section 288B at the transaction level but at the statement level. 17. I have received an intimation of Short Deduction but payment amount is not eligible for TDS as the amount is below the threshold limit. What should I do? You can file correction statement and raise threshold flag (‘Y’) in column no. 326 (24Q), column no. 424 (26Q), column no. 729 (27Q) and column no. 680 (27EQ) for ‘Reason for no / lower deduction’. 18. While filing a correction statement I quoted Late Fee amount in interest column. How can I rectify? File a correction statement, delete the amount from ‘Interest’ column and mention fee amount in ‘Fee’ column no. 404 in Form 26Q, column no. 305 in form 24Q, column no. 706 in Form 27Q and column no. 656 in Form 27EQ. 19. Can I download Conso File for a quarter for which correction statement has been filed after 18-Oct-2012? No. Such Conso file will not be available presently. Communication regarding the same will be published on TRACES once the Conso file will be available. 20. 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. 21. Who is a deductor? A Deductor is a specified person who is eligible to deduct tax on particular types of payments being made by them as per the provisions of the Income Tax Act, 1961. 22. 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. 23. Can a foreign citizen apply for a PAN? If yes, which form should be used? Yes. A foreign citizen can apply for a PAN by submitting Form 49AA at www.tin-nsdl.com. 24. What is PAN verification? This functionality helps deductor in verifying whether the PAN provided by the deductee (Tax Payer) is valid as per Income Tax Department database. 25. While trying to login to TRACES, system goes back to the landing page every time. What should deductor do? Deductor should check the browser being used. If you are using Internet Explorer version 7, 8 or 9 and issue still persists, try to open the portal in Google Chrome or Mozilla Firefox version 17 & above. 26. What are the functionalities that deductor can access after logging into their account on TRACES? The following functionalities are available to a deductor after logging in to TRACES: Landing page Dashboard View Challan Status View TDS / TCS Credit PAN Verification View Statement Status View Challan Status Query for Statement Download Consolidated TAN PAN File Request for Conso file View Default Summary Request for Justification Report Download Form 16 / 16A Manage Profile Add / Edit sub-users for a TAN 27. What do I do for Error: 'Invalid details' in Step–2 of Registration? Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Please enter challan details and unique PAN-Amount combination as reported in the regular statement. However, if challan details and the unique PAN-amount combination reported in the regular statement have been modified in the correction statement, then specify modified particulars of challan details and unique PAN-amount combination. Challan Identification Number (CIN) – This gets generated on payment of tax through Bank Challan. It consists of: BSR Code Date of Payment Challan Serial Number Book Identification Number (BIN) / Transfer Voucher Details – This gets generated on filing of Form 24G by Pay & Accounts Officer (PAO) / District Treasury Officer (DTO) / Cheque Drawing & Disbursing Officer (CDDO). It consists of: Form 24G Receipt Number Date of Transfer voucher DDO Serial Number Please enter a challan with at least three distinct valid PAN-amount combinations corresponding to the statement mentioned above. If there is no such challan, mention a challan with at least two valid PAN-amount combinations. If there is no such challan, mention a challan with at least one valid PAN-amount combination. If you do not have any such challan, mention a challan with no valid PAN-amount combination and also select the checkbox (no valid PAN deductees row) in the PAN Details section in Part 2 where you are supposed to enter the unique PAN-amount combinations. Registration process requires you to input ‘Token Number’ of your regular statement Following could be the reasons for getting ‘Invalid details’ message in Part 1 and / or Part 2 in registration Step-2: You might have not entered Token Number of your regular statement Challan details entered are not as mentioned in above Incorrect unique PAN-amount combination 28. From where can I obtain BIN details? BIN details have been made mandatory to be quoted in TDS statements filed after January 1, 2012. You will be able to register with BIN details after you have filed a TDS statement, if you have not done it yet. This can be obtained from your respective PAO. You can also check your BIN details with NSDL. 29. What should I do for error message: 'PAN details are incorrect' in Step–3 of registration? PAN status should be active at the time of registration. You can check the status of your PAN from Income Tax Department website (www.incometaxindia.gov.in). 30. What should I do if I am getting 'Invalid Password' error in Step–4 of registration form? Please use correct password format as specified in the help text for the password field. It should contain a minimum of 8 alpha numeric characters with at least one letter in upper case. Sample password: Password123@ If you still getting error while setting password, you are requested to check the browser version you are using. Browser versions listed below are compatible to website: Internet Explorer Version 8 or above Chrome Version 23 Mozilla Firefox While trying to register as a new user, I am getting an error message in Step–4 as, ‘Invalid Password’. I am following the instructions given on the page and using Mozilla Firefox browser. What should I do? Check your browser, version should be Mozilla Firefox version-17 and above. 31. If activation link and codes are re-sent, will the 24 hour deadline for activation be extended? No. The deadline will remain the same, i.e., 24 hours from the date of registration. 32. Login 33. Registered and activated user on TRACES is getting an error message as "Your account has been locked". What should deductor do? Registered user must select ‘Forgot Password’ option, and reset a new password to login into the account. 34. For how many hours do we need to wait after the account is locked? Account will be locked after five continuous unsuccessful efforts. You need to wait for 1 hour for your account to be automatically unlocked. 35. How can I edit details of sub-users? Admin User can edit sub-user details by selecting a sub-user row and clicking on ‘Update from PAN Master’ under ‘User Management’ in ‘Profile’. Name and Date of Birth of sub-user will be updated from PAN database based on PAN of sub-user. 36. Who is a sub-user? Sub-user is a user added by the Admin User for the TAN account on TRACES. 37. Can a Sub user add another Sub user to TRACES? No. Only Admin User can add sub-users for a TAN. 38. Can sub-user change any user details in 'Profile'? No. Sub-user cannot change organization and communication details for the deductor. Only admin user can change these details. 39. Deductor Registered on TIN 40. Who is a migrated user? Users who have registered their TAN with TIN (and possess TAN Registration Number) are being migrated to TRACES. Such users are being referred to as migrated users and these TIN users (deductors) need not register on TRACES as new user. 41. How are these forms generated? These forms shall be generated by TDS CPC on processing the quarterly TDS / TCS statements filed by deductor. Deductor will have to raise a request for the same on TRACES. Deductor shall have the option to digitally sign the certificates. 42. Due to non availability of PAN, tax has been deducted at higher rate. How can deductor provide Form 16 (Part A) / Form 16A without availability of PAN? Valid PAN is mandatory for issuing Form 16 from TRACES. Correction statement is required to be filled to report the valid PAN for downloading Form 16 (Part A) / Form 16A. 43. 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) 44. Can deductor download Form 16 without being registered on TRACES? No, only registered user (deductor) on TRACES can download Form 16 / 16A. 45. I have submitted download request for Form 16 for all employees. All forms have been successfully downloaded except one. What should I do? Form 16 is generated only for valid PAN. In case of invalid PAN or if the PAN is not reported in TDS statement, Form 16 will not be generated. 46. What are the different dates available on Form 16 / 16A? Date of processing will appear on the top and date of generation of Form 16 / 16A will appear at the bottom of Form 16 /16A. 47. Can I edit address details of Tax Payer (Deductee) on Form 16 / 16A? No. It cannot be changed on TRACES. 48. Dashboard 49. What are the details that I need to fill in the validation screen? Receipt Number of the latest accepted regular statement for Form 24G must be entered in validation screen. Other details include statement summary as per Section 6 of Form 24G for the specified Receipt Number. Form 24 Q / 26 Q / 27 Q 1. Can I use PAN to pay the TDS deducted into government account? No. You are required to take a separate Tax Deduction Account Number [TAN] by making an application in form 49B with the Tin facilitation center of NSDL. 2. How do I file my quarterly e-TDS/TCS return, if I don't have PANs of all deductees? You can file your e-TDS/TCS return for the deductees who have valid PANs and deduct 20% tax on payment amount for remaining deductees who’s PANs were not available. 3. Is obtaining TAN mandatory? TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centers managed by National Securities Depository Limited (NSDL). 4. By whom should the control chart Form 27A be signed? Form 27A is the summary of the TDS/TCS statement. It has to be signed by the same person who is authorized to sign the TDS/TCS statement in paper format. 5. Where can I file my TDS/TCS return? You can file your TDS/TCS return at any of the TIN-FCs managed by NSDL. TIN-FCs is set-up at specified locations across the country. Details are given in the NSDL-TIN website. These can also be furnished directly at NSDL-TIN web-site. 6. Can more than one e-TDS/TCS return be filed in a single computer media (CD)? No, each e-TDS/TCS return should be in a separate CD along with separate Form No. 27A for each return. 7. How are the inconsistencies identified? When you file your TDS return, the details regarding deposit of TDS made by you is compared with the data given by banks through OLTAS. If there is any mismatch in the data then it is known as inconsistency. 8. Can I file Y-type of correction e-TDS statement? No, as advised by Income Tax Department, with effect from July 1, 2013, acceptance of ‘Y’ type of correction TDS/TCS statements has been discontinued at TIN. 9. Can I update a challan in corrected e-TDS statement? Yes. You can update a challan while doing corrected e-TDS statement. 10. Can I update and add a new salary record in the corrected e-TDS statement? Yes, you can update a salary record as well as add an new salary record. 11. Can I rectify the details of a challan if the status of the same is “Booked” under regular TDS returns? Once the challan is updated with status ‘Booked’ modifications or rectifications to the details of the said challan are not allowed. As a result any correction TDS/TCS statement with modifications/rectifications on a booked challan will get rejected at the TIN central system. 12. What is the password for opening justification report? The password for opening Justification Report will be JR_TAN_FormType_Quarter_FY, i.e., JR_AAAA11111A_24Q_Q3_2010-11. 13. Request has been submitted for downloading of justification report, but now the status for the same is showing – not available? Why is it so? The justification report is shown as ‘Not Available’ for cases where a correction statement has been filed and is pending for processing. 14. What should I do in case of late payment/ late deduction intimation? The default amount will have to be deposited through challan no 281 by ticking minor head ‘400’. Download conso file from TRACES for filing correction and update the challan detail. While filing correction, fill up interest amount in column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. Mention default interest amount in second last interest column in challan detail of conso file. 15. Short Payment 16. Late filing 17. What are the details that I need to enter in the registration form? For Deductors Step–1 TAN of Deductor Step–2 Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows Step–3 PAN of Deductor PAN of Authorised Person (person responsible for deduction of tax at source) Date of Birth of Responsible Person as in PAN database Designation of Responsible Person Communication Address Mobile Number Email Id For Tax Payers Step–1 PAN of Tax Payer Date of Birth as on PAN Card Name as in PAN database Option 1 – Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and amount of tax deducted Option 2 – Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan Step–2 Communication Address Mobile Number Email Id 18. TAN Related 19. 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. 20. 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 / Organization. 21. How can I verify the PAN? Login to TRACES as deductor and click on ‘PAN Verification’ under ‘Statements / Payments’ tab. Enter PAN and select Form Type and proceed. Status of the PAN (whether valid / invalid) and name of PAN holder will be displayed as per PAN database. 22. What should I do for an error 'This type of correction can be performed only once for this statement' at the time of filing correction for change of PAN? Correction of valid PAN to valid PAN can be performed only once. If you have consumed all your attempts, you need to deposit short deduction default amount and file correction to close the defaults. 23. How to register as deductor on TRACES? Steps to be followed for registering as a Deductor on TRACES: Click on ‘Register as New User’ in TRACES home page Select ‘Type of User’ as Deductor Enter details from Step-1 to Step-4 and proceed Confirm details in confirmation screen On successful registration, activation link will be sent to registered email id and separate activation codes will be sent to registered email id and mobile number Click on activation link and enter User Id and activation codes After activation, user can login to TRACES 24. When can deductor register on TRACES after filing first statement at TIN-FC? Deductor can register on TRACES after the statement status is ‘Under Process at CPC’ at TIN Portal. 25. Can the same TAN be registered twice on TRACES? No. Same TAN cannot be registered twice. One TAN account on TRACES can consist of one Admin User and maximum of four sub-users. More than one admin user is not allowed for a TAN. 26. Can a deductor who has not registered on TRACES view the above functionalities? No. Only deductors who have registered their TAN on TRACES can view or access these functionalities. 27. Will the address provided for registering on TRACES be updated in TAN or PAN database? No. Address provided during registration on TRACES will be used only for TDS CPC purposes and will not be updated in TAN or PAN database. To update your TAN / PAN details, submit TAN / PAN change request form in TIN. 28. The Authorized Person for my TAN is a foreigner and does not have a PAN. What should I do in Step-3 of deductor registration? Any person who intends to enter into economic or financial transactions, where quoting PAN is mandatory, must have a PAN. In such a case, the Authorized Person has to apply for a valid PAN. Only then can you mention the details in Authorized Person fields in Step-3 of the registration form. 29. Is there a time limit for activating my account? Yes. Account activation must be completed within 24 hours of registration else account will be deactivated and you will have to register again on TRACES. 30. What if I have not received the activation link and codes or if I have inadvertently deleted the mail / SMS? If the 24 hours deadline to activate account has not passed, you can enter your TAN details in Step-1 of deductor registration form and submit. If it is verified that you have registered but not activated your account and if the 24 hours has not passed, system will display an alert asking if you want the activation link and codes to be re-sent. Click ‘Ok’ and the activation link and codes will be resent to your email id and mobile number. 31. Forgot user ID/ password 32. What if I forget my User Id for logging in to TRACES? User Id can be recovered by using Forgot User Id process. Follow the steps as given below: Click on ‘Forgot User Id?’ link in TRACES login page Select ‘Type of User’ as deductor Enter details in Step-1 and Step-2 of the form In Step-3, registered mobile number of the deductor as in TRACES profile will be displayed. User can edit the mobile number on the screen On clicking ‘Proceed’, One-Time Password (OTP) will be sent to the mobile number Enter OTP and submit If OTP is validated, existing User Id and registered email id of the user will be displayed. User can edit these details, if required New password must also be entered On submission, activation link and codes will be sent to the registered email id and mobile number You can login to TRACES after activating your account 33. What if deductor forgets User Id and password for logging in to TRACES? User Id and Password can be recovered by using Forgot User Id process. 34. Is it possible for an Admin User or sub-user to create an account with User Id as TAN or PAN? No. User Id cannot be same as TAN or PAN and it cannot be same as TAN or PAN structure. 35. How many sub-users can be added for a TAN? Maximum of four sub-users can be added. 36. If four sub-users have already been added for a TAN, can I add more sub-users by disabling a sub-user? No. A new sub-user can be added only by deleting one of the four existing sub-users. 37. How can update changes in details of authorized person of a TAN? Admin User can update details of Authorized Person under ‘Organization Details’ in ‘Profile’. Name of Authorized Person will be auto-populated from PAN database based on PAN and Date of Birth of Authorized Person entered by Admin User. 38. Can I update my mobile number/email id in TRACES? Yes. Email Id and Mobile Number can be updated under ‘Communication Details’ in ‘Profile’. 39. What is authentication code? Why is it used? It is of twelve (first and last three are alphabets the other nine are numerical) digits generated by the system and informed while acknowledging the TAN registration form for generation of Form 16A. 40. Why does TRACES provide different kinds of authentication codes? There are two types of validations after which Authentication Code will be generated. Statement Specific Validation – On this screen, details about a particular statement will be asked. For e.g., If you want to download NSDL Conso File for Financial Year 2010-11, Quarter 2 and Form Type 24Q, you have to provide challan details and PAN-Amount details for this statement. The Authentication Code generated will be for that particular statement. Generic Validation – On this screen, details about a generic statement will be asked. For e.g., If you want to update your profile, you have to provide challan details and PAN-Amount details about a generic statement will be asked. The Authentication Code generated will be for the FY, Quarter and Form Type displayed on the validation screen. 41. Deductor - Form 16- General 42. What should I do if I am not getting Form 16 from TRACES? Ensure that you have filed Form 24Q for Quarter 4 with Annexure II. It is mandatory to file Annexure II giving actual particulars for the entire financial year, as Form 16 is generated on the basis of information provided in Annexure – II. 43. How are the particulars of those employees who are employed with more than one employer in a financial year to be shown in Form 16? The employee should declare previous salary and TDS details, if any, with the current employer and the same should be considered by the current employer while deducting TDS on salary and issuing Form 16. 44. If I am receiving my pension through a bank who will issue Form 16 or pension statement to me - the bank or my former employer? The bank will issue Form 16. 45. What is a certificate number? Certificate number is present in Form 16 / Form 16A issued by Deductor. 46. Can Form 16 (Part A) / Form 16A be issued manually? No. Only the Form 16 (Part A) / Form 16A downloaded from TRACES are considered as valid TDS certificates, as per CBDT circular 04/2013 dated 17th April, 2013. 47. What should I do in case company name is updated incorrectly in Form 16 (Part A) / Form 16A? You need to check the respective quarterly statement and file a correction for the same. After filling correction, download Form 16 (Part A) / Form 16A. 48. What are the activities that a PAO can perform through TRACES? PAO can perform the following activities through TRACES Registration on TRACES Manage User Profile/ Change password etc View Dashboard View statement status for a particular TAN(DDO) mapped to PAO 49. Should I enter Authentication Code if I am trying to clear validation details for the first time during a day? No. While trying to clear validation details for first time, you will not have the Authentication Code; hence you are not required to enter this value. You can proceed by entering other details for validation on this screen (i.e., Receipt Number and statement summary details). On completion of validation, Authentication Code will be generated and displayed when you proceed to next page. You may copy the code and keep for re-using it during the same day. TDS / TCS Concepts 1. What is TDS? TDS means Tax Deducted at Source. It is the amount withheld from payments of various kinds such as salary, contract payment, commission etc. This withheld amount can be adjusted against your tax due. 2. I have deducted tax from payments disbursed but used the same for some urgent financial needs. What are the consequences? It is an offence to misuse the tax deducted at source. It should have been remitted to government account within the time allowed. The failure attracts tax, interest, penalty and also rigorous imprisonment up to seven years. 3. I am buying a property from a person residing in USA. Should I deduct tax while making payment? Yes u/s 195. In case you have any doubt regarding the amount on which TDS is to be made, you may file an application with the officer handling non-resident taxation who will pass an order determining the TDS to be made. Alternatively, if the recipient feels that the TDS is more he may file an application with his Assessing officer for non-deduction. 4. What is a correction TDS statement? Deductor / Collector is required to furnish one regular TDS statement for a particular TAN, form and financial year and quarter. In case there are any defaults identified in regular return correction statement has to be filed. 5. Can I update / add deductee and challan details in the same correction statement? Do I need to file a separate correction statement for updating PAN as well as adding challan for a deductee? Yes, there is no need to file separate correction statements for different corrections. In case you need to modify different deductee / challan in the same statement in can be done in a single correction file. Depending on the types of correction a single correction may contain multiple correction statements. 6. What is a justification Report? It is a document which serves as an annexure to the intimation to be sent to the deductor. Intimation will be sent to the deductor through mail / post but a justification report will have to be downloaded from the portal. 7. How do I know my AO details? Log on to www.incometaxindia.gov.in to get information about respective AO. 8. Late payment 9. I have received an intimation of Short Deduction however reported deductee has a lower rate certificate what should I do? You can file a correction statement and raise ‘A’ flag for respective deductees, in column no. 326 (24Q) & column no. 424 (26Q) for ‘Reason for no / lower deduction’. 10. What should I do in case of Short Payment / Short Deduction intimation received? The default amount (along with the interest applicable till the date of payment of short payment default) will have to be deposited through challan no. 281 by ticking minor head 400. Download conso file from TRACES for filing correction and update the challan details. While filing correction fill up principal amount in column no. 402 in Form 26Q, column no. 302 in Form 24Q, column no. 702 in Form 27Q and column no. 652 in Form 27EQ and interest amount in column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. After adding the new challan, you will have to add new deductee rows for which short payment / short deduction has been raised and map to the corresponding challan. 11. How can I ensure that I have entered correct communication details (Email Id or Mobile Number) during registration? Can I edit this information before submitting my registration form? During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on ‘Edit’ to change your details. 12. I am a registered user on TRACES. However whenever I am trying to login into TRACES, I am always getting the message 'Invalid details'. What may be the reason? To login and use the functionalities of TRACES, you are required to enable Java Script in your web browser. Please refer to below mentioned step-by-step instructions for different browsers to enable java script: Internet Explorer Click on ‘Tools’ option from your browser toolbar Go to ‘Internet Options’ Select the ‘Security Tab’, click on ‘Custom Level’ In the ‘Security Setting-Internet Zone’, look for the ‘Scripting’ In the ‘Active Scripting’, select ‘Enable’ When the ‘Warning!’ window pops out asking “Are you sure you want to change the settings for this zone?” select ‘Yes’ In the ‘Internet Options’ window, click on ‘OK’ button to close it Firefox On the web browser click ‘Firefox’ menu and then select ‘Options’ In the ‘Options’ window, select the ‘Content’ tab Mark the ‘Enable JavaScript’ checkbox In the opened ‘Options’ window, click on ‘OK’ button to close it Click on the ‘Reload Current Page’ button of the web browser to refresh the page Chrome Click the Chrome menu, select ‘Options’ Select ‘Under the Hood’ Under ‘Privacy’, click on ‘Content settings…’ When the dialog window opens, look for the ‘JavaScript’ section and select ‘Allow all sites to run JavaScript (recommended)’ Click on ‘OK’ button to close it Close the ‘Settings’ tab Click on the ‘Reload This Page’ button of the web browser to refresh the page 13. Deductee is foreigner and does not have PAN. Do I need to deduct TDS? Yes. Any person who intends to enter into economic or financial transactions were quoting PAN is mandatory, must also have a PAN. In case the person does not have PAN, tax should be deducted at the rate of 20% or higher. 14. What happens if I have quoted incorrect PAN in the tax payment challan used for depositing my advance / self-assessment tax? In such cases, your tax payment details will not be reflected in Form 26AS. It is important for you to correctly state you’re PAN in the tax payment challan. For correction in challan within 7 days, you need to approach the bank and after 7 days, you may approach the jurisdictional assessing officer. 15. PAN provided by deductee is invalid, Can deductor deduct TDS on higher rate along with surcharge? In case of invalid PAN, TDS along with surcharge (in case applicable) should be deducted at higher rate. 16. Can the same TAN be registered twice on TRACES? No. Same TAN cannot be registered twice. One TAN account on TRACES can consist of one Admin User and maximum of four sub-users. More than one admin user is not allowed for a TAN. 17. Registration 18. Can I view my address details in TAN database or last statement? Yes. In Step-3, deductor can view address details as in TAN database (TAN Master) or as in last statement filed by the deductor. Deductor can also copy the address details onto the registration form and edit it. 19. I have submitted incorrect communication details (Email Id or Mobile Number) in my registration form? How can I edit the same? Please wait for 24 hours for your account to be deactivated and try to register again as new user. 20. Account Lockout 21. Will my account get locked if I enter incorrect login details? Yes. Account will be locked after five consecutive unsuccessful attempts within a span of 24 hours. 22. Who can create and manage sub-user accounts? Admin User can create sub-users on TRACES. Maximum of four sub-users can be created for a TAN. Admin User can also update sub-user details (Name and date of birth based on PAN) from PAN database, disable / enable or delete the sub-user. If sub-user is deleted, all details of the sub-user will be deleted from the TRACES system and Admin User will have to add the sub-user again. 23. What is the difference in functionalities between Admin User and sub-user? All functionalities for deductor are enabled for Admin User and sub-users. The only exception is that sub-user has to submit online correction statement to Admin User. Admin User will verify the correction statement and submit to ITD for processing. 24. For a migrated user, will the User Id and Password change in TRACES? User Id will not change for a migrated user and it will be same as for your TAN registration account in TIN. Password must be changed during first time login to TRACES. After activation of your account in TRACES, user must login to TRACES using existing User Id and new Password. 25. Authentication Code 26. If a deductee comes back stating that the original TDS certificate is lost, can a duplicate certificate be issued? Yes. Deductor will have to issue the duplicate certificate. 27. Even if no taxes have been deducted from salary, is there any need for my employer to issue Form 16 to me? Form 16 is a certificate of TDS and in your case it will not apply. However your employer must issue a salary statement. 28. Content/Format 29. Can I make any changes in the certificate generated by TDS CPC? The certificates shall be generated in PDF format, therefore they are not editable. Deductor is thereby not permitted to make changes these certificates. If any error is identified in the certificate, deductor will have to file a correction statement for the same. 30. From where can I download JRE 1.7v? You can download JRE v1.7 from www.java.com. 31. PAO 32. How can a PAO view statement status for a TAN? Click on ‘Statement Status’ in menu bar and enter the input details and click on ‘Go’. It is mandatory to enter TAN for which statement status is to be viewed. Clicking on value of ‘Count of Unmatched BIN(s)’ for a particular Quarter and Form Type will display the validation screen, after which, you can view the Default Summary for the TAN for the selected FY, Quarter and Form Type. 33. Is it mandatory to enter Authentication Code? No. If Authentication Code has been generated for the statement for which you are filling up validation details, you can enter it in the field provided for the same. It will facilitate users to avoid filling up validation details repeatedly in case user logs in again at different time of the day. If it has not been generated or if you have not saved it, you can proceed by entering other details on this screen. 34. What is the advantage of Authentication Code? Authentication Code is generated to facilitate users to avoid filling up of validation details repeatedly in case user logs in again at different time of the day.. 35. Profile 36. How do I update my organization / communication details in TRACES? After clicking on ‘Profile’ in menu bar, user must clear the validation screen for the Profile screens to be displayed. User can edit details in any of the Profile tabs and click on ‘Save’. 37. How do I change my TRACES login password? After clicking on ‘Profile’ in menu bar, user must clear the validation screen for the Profile screens to be displayed. User can edit password by clicking on ‘Change Password’ tab and click on ‘Save’. Both old and new passwords must be entered to change the password. After changing the password, user must login next time using new password. 38. Online Correction 39. Can BIN details be corrected through online correction? Yes, BIN details in the statement can be corrected through “Challan Correction” option under ‘Unmatched Challan’ header. 40. What is the procedure to make online correction in case of short payment default? Deposit the Short Payment default through challan no 281 by ticking minor head 400. Deductor can receive short payment in following cases and follow the given procedure for online correction: Short payment due to insufficient balance- Deductor needs to check that how much amount has consumed against the deductee row, then move the deductee rows to the challan with sufficient available balance through “Resolution of Overbooked Challan (Movement of Deductee Row)” option (refer E-tutorial for detail). Short payment due to mismatch in challan- Deductor can correct the mismatch challan through “Challan Correction” option under “Unmatched challan” header (refer E-tutorial for detail). 41. While filling online correction I quoted interest amount in both columns, when trying to click on proceed to interest I am getting an error ‘Total Tax Deposited’ is less than ‘Available Balance of the Challan’. What should I do? Please check the available balance of the same challan under challan status. 42. Can I make correction on the basis of Default Summary available on TRACES? Yes, you can make online correction on the basis of default summary however; it is advised to download updated Justification Report from TRACES. Justification Report provides detailed information about the defaults / errors that needs to be rectified by filing correction statement and payment of the necessary default / interest / fees / other. 43. After making online correction, after how much time system will take to process the changes? Changes will be processed within 24 hours. 44. How to track Correction Request? After login to TRACES as a deductor, select ‘Track Correction Request’ from Default under main menu. 45. What if deductor does not have data to be entered in KYC for making Online Correction? Please contact Jurisdictional Assessing Officer and raise your concern. 46. Is there any limit to add / modify deductee row for making online correction? No, there is no limit to add / modify deductee row provided that sufficient balance is available in tagged challan. 47. Can deductor apply for Online Correction prior to Financial Year 2012-13? Yes, deductor can file online correction from Financial Year 2007-08 onwards; however deductor has to ensure that the latest correction for the relevant statement should be processed through TDSCPC. 48. Is it possible to move deductee row from one challan to another challan for the same quarter? Yes, deductor can move deductee row from one matched challan to another for the same quarter, however it will be possible only if there is available balance in the challan. 49. If online correction is rejected by TRACES. What should deductor do? Check the rejection reason and submit the fresh correction request. 50. If I dont Capture Token number, from where will it be available? After making online correction, it is advisable to note down the token number. However, if by any chance you forgot to note down, download the conso file and get the token number. 51. I have nil challan in my statement, which is in an unmatched status, therefore I am not able to download conso file. What should I do? Tag the challan with available balance to the nil challan. Once it is processed, then you will be able to download conso file. TRACES 1. I have not received TDS certificate from my employer. Can I claim TDS deducted from my salary? Yes. The claim can be made in your return. Department however will raise a demand which will not be enforced on you but on your employer. 2. What is e-TDS Return? e-TDS return is a TDS return prepared in form in electronic media as per prescribed data structure by NSDL given in CD to TINFC. The CD prepared should be accompanied by a signed verification in Form 27A. 3. Who is required to file e-TDS returns? As per the income tax act, 1961, all corporate and government deductors are compulsorily required to file their TDS returns on electronic media. 4. What is Form No. 27A? Form No. 27A is a control sheet of quarterly e-TDS/TCS statements to be filed in paper form by deductors/collectors along with quarterly statements. It is a summary of e-TDS/TCS returns which contains control totals of ‘amount paid’ and ‘income tax deducted at source’. 5. What is OLTAS? OLTAS means – Online Tax Accounting System. This is Income Tax Department’s initiative to receive information and maintain records of tax paid through banks through online upload of challan details is named as OLTAS (Online Tax Accounting System). 6. What is justification report? This document consists of various defaults / errors identified by the Income Tax Department (ITD) while processing the statement filed by deductor during a particular quarter of a financial year. It provides detailed information about the defaults / errors that needs to be rectified by deductor by filing correction statement and payment of the necessary interest / fees / other dues. 7. Can I file the e-TDS correction statement with any TIN-FC? You can file the correction e-TDS statement with any TIN-FC. 8. What should I do if a status of challan is in a “Match failed” status? A challan is in Match failed status as the TAN/ challan amount in the statement does not match the details provided by the Bank. As a result the credit of tax deducted will not be reflected in Form 26AS of corresponding deductees with valid PAN. The possible cause could be error in quoting challan amount. The same can be rectified by filing a correction statement. 9. What are the points to be kept in mind while updating the challan? Identify the challan to be updated by:- Its sequence no. as per regular statement CIN, deposit amount as per regular statement Update the challan detail as required. 10. What are the important points to be considered while preparing correction statement more than once on the same regular statement? The following points while preparing correction statement more than once on the same regular statement: The TDS/TCS statement on which correction is to be prepared should be updated with details as per all previous corrections. Modifications/addition/deletion in correction statements accepted at the TIN central system only should be considered. 11. What is the purpose of justification report? This document consists of various defaults / errors identified by the Income Tax Department (ITD) while processing the statement filed by deductor during a particular quarter of a financial year. It provides detailed information about the defaults / errors that needs to be rectified by deductor by filing correction statement and payment of the necessary interest / fees / other dues. Deductor can also provide clarification for any of the errors identified. 12. How can deductor know about his default calculation? Deductor needs to download the Justification Report for the statement to know about default calculation in the statement. 13. Late Deduction Late Deduction 14. I have received an intimation u/s 200A with the demand raised due to short payment. I have made the payment within the prescribed time-limit. Now what should I do? Short Payment defaults may be raised due to challan mismatch. You are requested to check the details filed in statement corresponding to the challan. 15. I have received an intimation of Short Deduction u/s 194C however deductee is a transporter what should I do? You can file correction statement and raise transporter flag (‘T’) for the particular deductee, who is a transporter, in column no. 424 (26Q) for ‘Reason for no / lower deduction’. 16. I filed TDS statement on before the due date through third party vendor and received acknowledgement for the same. However, I received an intimation u/s 201(1A) for late filing. What should I do? Acknowledgement issued by third party vendor received while filing the TDS statement through third party vendor does not mean that original TDS/TCS statement successfully filed at TIN-FC on time. An acknowledgement carrying fifteen digit provisional receipt number , SAM value & HASH value issued by TIN-FC is the proof of TDS/ TCS statement successfully filed and date of filing mentioned on the same will be considered for all purpose at TDS-CPC. 17. Login 18. 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 19. PAN (Permanent Account Number) 20. I am a deductor. Why should I register on TRACES? TRACES enables deductors / collectors to view challan status, download Conso File, Justification Report and Form 16 / 16A, view TDS / TCS credit for a PAN as well as verify PAN of Tax Payers linked to the deductor / collector. 21. What are the activities that a deductor can perform through TRACES? Deductors can perform the following activities through TRACES: Registration of Admin User for a TAN Creation of sub-users by Admin User View challan status Download Justification Report Download Form 16 / 16A View TDS – TCS credit for a PAN View PAN master for the TAN View Statement Status Provide feedback Manage user profile and change password 22. How to fill three unique PAN-amount combinations, if I have less than three Deductees? You need to provide information for three distinct PANs pertaining to the challan mentioned in CIN details. It should be the same combination of PAN & amount as provided in the statement. If you have less than three deductees corresponding to the CIN details mentioned, you are required to submit details for those deductees only (one or two). It should not be same PAN with same amount in deductees’ details. 23. When I provide my TAN and Token Number, I get the message 'Invalid details'. Why? Token Number (Provisional Receipt Number) provided must be of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012. 24. What if deductor is getting invalid password error in Step-4 of registration? Password should contain a minimum of 8 alpha numeric characters with at least one character in capital letter. You can also use special characters, for detailed list refer the help text for the Password field or help text for the screen (Click on ‘Help’ in the menu bar). 25. Account Activation 26. How will my account get unlocked? Account will be unlocked after one hour of lockout. 27. I know my password but accidently entered wrong values for five consecutive times so my account is locked. What should I do now? Account will be unlocked after one hour of lockout. Please wait and try logging again after one hour. 28. How to de-register an Admin User account? User account for a TAN on TRACES can be de-registered only by surrendering TAN / AIN (in case of PAOs) to the Assessing Officer (AO). 29. Can Sub–user view Organization details and Communication details as updated by Admin User? Yes. Sub-user can view organization and communication details as updated by Admin User but cannot modify the details. 30. Profile 31. I am an existing user in TIN. How do I register in TRACES? If you have registered your TAN on TIN and have a TAN Registration Number, your details will be migrated from TIN to TRACES. Such users will have to login to TRACES for first time using User Id and Password as in TIN for your TAN registration account. After successful login using TIN credentials, user will have to enter few additional details which have not been migrated from TIN to TRACES. After this short registration process, user will have to activate their account. User will then be able to login to TRACES after account is activated. Activation process for migrated user will be similar to as for normal user registering on TRACES. 32. I am already an existing user with TIN NSDL. I have updated my profile on TRACES, however I did not receive activation code on my mobile and e-mail. How can I activate my account on TRACES? If account is not activated in 48 hours after receiving the activation code, it will automatically be deactivated. Please wait for 48 hours, after that you can register as new user on TRACES. 33. What are the different matching statuses in Form 16 / Form 16A? Following are different matching statuses in Form 16 / Form 16A: U – Unmatched (Deductor has not deposited taxes or has furnished incorrect particulars of tax payment. Final credit will be reflected only when payment detail in bank matches with details of deposit in TDS/TCS statement) P – Provisional (Provisional tax credit is effected only for TDS / TCS statement filed by Government deductor. ‘P’ status will be changed to Final (F) on verification of payment details submitted by Pay and Account Officer (PAO)) F – Final (In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductor have matched with the payment details mentioned in the TDS / TCS statement filed by deductors. In case of government deductors, detail of TDS / TCS booked in Government accounts have been verified by Pay and Account Officer (PAO)) O – Overbooked (Payment details of TDS / TCS deposited in bank by deductor have matched with details mentioned in the TDS / TCS statement but the amount is over claimed in the statement. Final (F) credit will be reflected only when deductor reduces claimed amount in the statement or makes new payment for excess amount claimed in the statement) 34. Tax has been deducted at the rate of 20% due to non-availability of PAN. How can I issue Form 16A? PAN is mandatory to issue Tax deduction certificates. 35. What can I do if I am unable to get the TDS certificate (Form 16 / 16A)? It is the duty of every person deducting tax to issue a TDS certificate. In spite of your request, if you are denied the certificate then there is a chance that the tax deducted has not been deposited by the deductor to the government account. Please inform the department (PRO or TDS section) which will then do the needful. 36. I have not received TDS certificate from my employer. Can I claim TDS deducted from my salary? Yes. The claim can be made in your return. Department, however, will raise a demand which will not be enforced on you but on your employer. 37. While submitting request to download Form 16 / 16A, deductor has entered details correctly in Part 1 and Part 2 in validation details screen, yet it shows error as 'Invalid Details' in Part 1 and Part 2. What should deductor do? Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement. 38. Is there any data downloading limit for Form 16 / 16A? There is no such limit. 39. PDF Converter 40. When I tried to generate Form 16 / 16A by using PDF converter, I am getting an error "O PDF files generated successfully". What should I do? Download the updated version of PDF converter utility 1.3L. 41. As a PAO how will the dashboard information be helpful to me? In dashboard you can view quarterly PAO- DDO mapping, count of DDO’S mapped, total count of DDO’S for each count type. 42. What does the Default Summary screen indicate? Default Summary screen displays the default details for the particular TAN for the selected FY, Quarter and Form Type. It will display details such as Token Number and Order Passed Date for the regular statement and two latest correction statements, count of correction statements, Count of Total BIN(s) as well as Count of Unmatched BIN(s) and the comparative view of BIN details from the TDS statement filed by the deductor vs. the Form 24G statement filed by the PAO.
