Quick Summary
The Tax Deducted at Source (TDS) regime plays a crucial role in revenue collection. However, taxpayers often find themselves in situations where TDS deductions exceed their actual tax liability, impacting their cash flow. To address this, the Tax Deduction and Collection Account Number (TAN) system has introduced the TDS Reconciliation Analysis and Correction Enabling System (TRACES), offering taxpayers the opportunity to file for lower or nil deduction of TDS, thereby enhancing their financial
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FAQ :
TRACES stands for the Tax Deduction and Collection Account Number (TAN) system's TDS Reconciliation Analysis and Correction Enabling System. It allows taxpayers to apply for lower or nil TDS deductions.
Taxpayers can use Form 15E for applications under section 195(2) of the Income Tax Act, and Form 13 for applications under section 197 of the Income Tax Act.
The application window for lower or nil TDS deduction for the current financial year (FY 2023-24) using Form 15E or Form 13 closes on March 15, 2024.
The facility to file for lower or nil TDS deduction for the upcoming financial year (FY 2024-25) using Form 15E or Form 13 will be available from February 28, 2024, onwards.
Applying for lower or nil TDS deduction helps ensure that your tax deductions do not exceed your actual tax liability, which can significantly improve your cash flow and overall financial management.
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