TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online platform in used for the reconciliation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) statements filed by deductors or collectors with the income tax department. It helps ensure accurate tax reporting and compliance with tax regulations.
Who can Register?
TRACES registration is mandatory for every deductor / taxpayer and PAO :
Deductor
A Deductor is an individual or entity responsible for deducting taxes at source on specific payments and remitting them to the government. They must also report these deductions within a specified timeframe. TRACES registration is mandatory for deductors, including government offices, companies, those audited under section 44AB of the Income Tax Act, and those reporting over 20 deductee records in a quarter.
The steps to register as a Deductor on TRACES:
- Go to the TRACES website.
- Click the "Register as New User" link on the homepage.
- Select 'Deductor' as the type of user.
- Enter your Tax Deduction and Collection Account Number (TAN) and click "Proceed."
- Verify your TAN details and click on "Proceed" to continue.
- Fill in all the necessary information required for the registration.
- After entering all the details, click the "Submit" button to complete the registration process.
- You will receive a confirmation email with a link to activate your account.
- Click on the activation link in the email and enter your user id and activation codes.
- After activation, you can log in to TRACES as a registered Deductor.
Taxpayer
A Taxpayer or Deductee is the individual or entity whose tax has been deducted by someone else, typically at the source of income.
The steps for a Taxpayer to register on TRACES:
- Visit the TRACES website.
- Click the "Register as New User" link on the homepage.
- Select "Taxpayer" as the user type from the drop-down menu.
- Provide PAN Details, including Date of Birth/Date of Incorporation, and Name of the Taxpayer.
- Enter Details of TDS deducted/collected, including details of the Challan used to deposit tax and Details of 26QB Statement if applicable.
- Click on "Create Account" after inputting the required details.
- Review the confirmation screen to validate the submitted information. Use the edit tab to make any necessary changes.
- Confirm the data, and an activation link and activation code will be sent to the applicant's email address and mobile number.
- Use the activation link and code to activate the TRACES account.
PAO
The Pay and Accounts Office (PAO) is responsible for filing Form 24G to report tax deductions made by Drawing and Disbursing Offices (DDOs) within 15 days from the end of the month. PAOs receive a Book Identification Number (BIN) from the authorized agency appointed by the Director General of Income-Tax (Systems) and share it with DDOs for credited deductions. For government offices paying taxes without a challan, Form 24G is required. PAOs use TRACES to register, view statement statuses, and access summary information about DDOs linked to their Account Office Identification Number (AIN). This data contributes to the G-OLTAS database.
The steps for a PAO (Pay and Accounts Office) to register on TRACES:
- Go to the TRACES website.
- Click on the "Register as New User" tab.
- Select "PAO" as the user type and proceed.
- Enter the AIN (Accounts Office Identification Number), which is mandatory.
- Enter either the Receipt Number of 24G or AIN Registration Number with TIN and proceed.
- Provide organization details and communication address.
- Enter the user ID (AIN NUMBER) and password, then proceed.
- You will receive an activation link on your registered email address and activation codes on the email address and mobile number provided during registration. Open the email, click on the activation link within 48 hours, and enter the activation code sent via email and mobile number.
- After completing these steps, the PAO is successfully registered on TRACES.
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