How to generate TRACES login using a registered TAN? And Benefits of TRACES Registration

Before going through “How to generate TRACES login using a registered TAN?” It is important for an individual to be familiar with the terms related to the TRACES, TAN Number, and “How to Register Traces as a Taxpayer?”. This blog will assist you with all the information related to the TRACES Registration, and “How to generate TRACES Login for your TAN?”.

What is a TAN?

The term TAN stands for Tax Deduction and Collection Account Number and is a 10-digit alphanumeric number. Every assesses who is obliged to deduct TDS must apply for a TAN Number, which must be quoted in all TDS Returns, TDS Payments, and any other correspondence with the Income Tax Department about TDS.

According to Section 203A of the Income Tax Act 1961, all assesses liable to deduct TDS must cite this TAN Number in all dealings with the Income Tax Department regarding TDS, and failure to do so will result in a penalty of INR 10,000. Banks will not accept TDS Returns and payments if the TAN Number is not provided.

What is a TRACES?

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System. It is an Income Tax Department online platform that connects all parties involved in the administration and implementation of TCS (Tax Collected at Source) and TDS (Tax Deducted at Source). The main purpose of the TDS TRACES Website is to read and download important tax records such as  Form 16A, Form 26AS, and Form 16.

Procedure on “How to register in TRACES as a Taxpayer?”

Step 1 – Go to the TRACES website and choose Taxpayer from the drop-down menu under Register as New User on the homepage.

Step 2 – An individual needs to provide all the details regarding PAN, Incorporation, or date of birth, along with the verification code after that click on proceed button.

After that taxpayer is required to fill any of the following documents

• Details of the Form 26QB statement.
• The corresponding challan contains information on Advance Tax, Self-Assessment Tax, and TDS on Property Paid.
• Details on TDS/TCS can be found on Form 26AS or Form 16/16A.

Step 3 – For creating an account, the taxpayer must first create a password and answer the security question.

Step 4 – The following page will display all of the previously provided data. If necessary, people can modify or confirm such facts before proceeding.

Step 5 – The login link and password will be given to the taxpayer’s registered email address and mobile number after verification. To activate their account, the person must go to that website and enter the code, after which they can log into TDS TRACES.

Procedure on “How to generate TRACES login using registered TAN?”

Step 1 – Login to TDS – CPC portal.

Step 2 – Enter login ID & Password.

Step 3 – Click on the profile menu.

Step 4 – Details related to the deductor.

Step 5 – Click on submit.

Step 6 – Click on the activation link, and Enter details related to the User ID and Code.

Step 7 – Taxpayer can login to TRACES.

The benefit of TRACES Registration

A registered deductor can access various services on TRACES’ website. Examine download Conso File, challan status, Form 16 / 16A, and Justification Report, view TCS/ TDS credit for a PAN, and verify PAN of Tax Payers linked to the collector/deductor are just a few of the capabilities. A deductor must register their TAN in order to take benefits.

Conclusion

The Income Tax Department’s TRACES web-based tool provides an interface to all stakeholders involved in TDS Management. It allows you to check the status of your challan, download your Conso File, Justification Report, and Form 16 / 16A, and read your Annual Tax Credit Statements (Form 26AS).