TDS is Tax-deducted at the source which is a taxation rule as set by the government wherein your applicable taxes are deducted even before you receive the salary. The TDS calculation is done in accordance with the tax slab applicable to you. TRACES is an online rectification system that takes care of any and all mistakes if committed while filing the TDS or for an already filed TDS.
TRACES stands for TDS Reconciliation Analysis and Correction Enabling System run by the Income Tax Department. TRACES allows online correction of TDS which has already been filed. This saves from the extensive process of re-filing the revised return and is much more simplified. You can make changes regarding PAN details and Challan as well through this system.
Fir using TRACES, the tax deductor needs to be registered with it. You can do so by visiting www.tdscpc.gov.in. Create a login id and password on successful registration. Use these credentials to make online rectifications and requests.
REQUEST FOR CANCELLATION
Once you log into the TRACES webpage, the homepage has a tab under the name ‘Defaults’. Click on this tab and select ‘Request for Correction’ option to raise an online request.
Details relating to the type of form, financial year, quarter, latest token number, correction category can be taken up for rectification. Upon filing the details, submit the form online.
Note: If you had submitted the TDS form physically and wish to make rectification online through TRACES, that will not be possible. Only the forms submitted online are eligible for rectification through TRACES. In the case of physical submission, you will have to make a correction by refiling the correction form.
Upon verification of details, if they are valid, your rectification request is accepted. The taxpayer is issued with a ‘Request Number’.
If you wish to track the status of your request, go to the ‘Defaults’ tab on the homepage. Select ‘Track Correction Request’ option under the Defaults tab.
Making the correction
Once the request status for your raise request is shown ‘Available’, you can carry forward the rectification. Keep the new token number issued handy, that will be required. Once your challan gets validated, a challan correction screen will be enabled.
Key points to remember
- This portal is valid only for statements issued since 2007-08
- This portal is only valid for PAN and challan corrections. For any other correction, please follow the offline mode through TIN-FC
- The TRACES facility can also be availed by a Taxpayer to carry out any corrections