Subject: Urgent Assistance Required – TRACES 2.0 Invalid PAN Error for NRI / Form 132

Dear Angsuman,

This is a known and frustrating technical limitation in TRACES 2.0 when dealing with newly issued PANs for Non-Residents (such as OCI holders) where Aadhaar linkage is legally exempt. Even though the e-Filing portal recognizes and validates the PAN, the backend database synchronization pipeline between the Income Tax e-Filing infrastructure and CPC-TDS (TRACES) frequently experiences validation lags.

Here are direct answers and workarounds to your points:

1. Known Issue: Yes, newly issued PANs—especially non-resident categories without mandatory Aadhaar fields populated—frequently hit validation bottlenecks during initial TRACES registration.

2. Synchronization: The PAN activation on TRACES relies on batch database updates from the main e-Filing database. If there is a schema mismatch regarding the Non-Resident / OCI flag, it stalls automatically.

3. CA Access to Form 132: Generally, generating specific certificates/forms tied directly to the taxpayer requires active taxpayer-level authorization or TRACES registration. However, a deductor or their authorized professional can often track or initiate related compliance filings via the deductor's active TRACES login.

4. Alternative Procedure: There is no official manual override available to taxpayers directly on the portal. Persistent technical roadblocks require routing the issue through higher escalation channels.

5. Aadhaar Mandate: Aadhaar is not mandatory for non-residents or OCI holders under specific income tax rules. However, if the legacy verification scriptt on TRACES checks fields strictly against standard resident validation logic, it triggers the "Invalid PAN" error.

Recommended Next Steps:

• Instead of generic CPC-TDS grievances, raise a specific ticket through the e-Filing helpdesk explicitly requesting a "PAN Master Data and Non-Resident Flag Synchronization with TRACES 2.0."

• Coordinate with the buyer/deductor to check if the compliance status can be managed temporarily via their deductor dashboard while your profile syncs.

Hope this helps clarify the root cause and provides a path forward.

Dear Angsuman<

 You may try an alternative verification method available under TRACES 2.0 registration for Individual – Non-Resident Taxpayers.

As per the TRACES 2.0 Registration Manual (2026–27), Aadhaar is not the only verification option. The portal provides:

1. Approval at e-Filing.

2. Authentication Using KYC.

For an NRI without Aadhaar, the KYC option specifically provides the exemption reason "A non-resident as per the Income-Tax Act, 2025."

Since your PAN is already active and registered on the Income Tax e-Filing portal, I would suggest trying the e-Filing approval route first, followed by KYC authentication if required.

One clarification: At which stage exactly do you receive "Invalid PAN, please retry"?

• Immediately after entering PAN and personal details?

• Or after selecting the verification method?

If the error occurs at the initial PAN validation stage, CPC-TDS may need to investigate PAN validation and its mapping with TRACES 2.0.

This distinction will help identify whether the issue is related to PAN validation or the subsequent authentication process.
Many Thanks 
CAMSROY