How can taxpayers Track their High-Value Transactions?

You can use your Form 26AS to see if you have any transactions flagged as “High-Value Transactions”. Entities such as Banks and other Financial Institutes are responsible to furnish certain transaction details through Form 61A (Annual Information Return). With an aim to curb black money and to track high-value transactions, the government has implemented new reporting guidelines. Therefore, “High-value transactions” of Individuals and Businesses are monitored u/s 285BA of The Income Tax Act.

Form 26AS as an 'Annual Information Statement' from 1st June 2020 will include Property and Share Transaction details
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Form 26AS as an 'Annual Information Statement' from 1st June 2020 will include Property and Share Transaction details

Steps to track High Value Transactions

  1. Log in to the Income Tax e-Filing Portal

    Visit the Income Tax e-Filing portal and login using valid credentials.

  2. Click on “My accounts

    Select View Form 26AS (Tax credit) Option

  3. View Tax Credit Statement

    Click on the option to proceed which will redirect you to the TRACES portal.

  4. Agree usage and acceptance of form 16

    Click on the checkbox and then proceed.

  5. Option to view the form

    Now you can click on the option to view the annual information statement.

  6. Enter the required details

    Enter the assessment year and choose the type of file you wish to download. The downloaded file will be password protected and the password is your Birth date.

  7. Lastly, you can look at Part E

    It has the details of AIR Transaction in the downloaded file.

FAQs

What is File Validation Utility (FVU)?

FVU created by NSDL is a program to verify the format of AIR submitted by filers and to measure its accuracy. FVU will accept AIR submissions only if it is error-free. If there are any errors in the details an error code and error description and details about the error will be displayed. You can resubmit your form after correcting the errors. If there remains no error in filing AIR then the “File Validation Successful” message pops up.

How does the Income Tax Department (ITD) come to know about my “High valued Transactions”?

Well, If any Individual/Business makes a Financial Transaction which can be considered as “High valued Transactions”. Then the Bank and other Financial Institutes have to report the transaction with the registered PAN of that Person. Hence, ITD can come to know about your “High valued Transactions”

What are the Forms required for AIR?

AIR can be furnished through Form 61A (Part B) in a digitized form in a CD/Floppy. While Form 61A (Part A) in a paper format duly signed.

TRACES: Verify TDS Certificate

Every person deducting tax at source is required as per Section 203 to furnish a certificate to the payee to the effect that tax has been deducted along with certain other particulars. This certificate is usually called the TDS certificate. Hence, it is important to verify the validity of the TDS certificate. An individual receives 4 types of TDS certificates in a financial year. They are as Form 16, 16A, 16B, and 16C.

While a Deductor can download TDS Certificate from TRACES, the Deductee can verify the details of the TDS Certificate from TRACES. It is important to understand how this entire process works.

  • The deductor makes the payment to the Deductee after deducting TDS under relevant section (194C, 194J, 194H, 194IA, 194I, 194A, 192, 194IB)
  • Therefore, deductor deposits the TDS with the Income Tax Department
  • Hence, the deductor files the relevant TDS Return Form (24Q, 26Q, 27Q, 27EQ)
  • Deductor issues a TDS Certificate to the Deductee (Form 16, Form 16A, Form 16B, Form 16C, Form 16D)
  • Deductee claims the TDS credit while filing the Income Tax Return
To view or download Form 26AS, it is not mandatory to create an account on the TRACES portal. You can log in to your account on the Income Tax e-Filing portal to view or download the same
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To view or download Form 26AS, it is not mandatory to create an account on the TRACES portal. You can log in to your account on the Income Tax e-Filing portal to view or download the same

Steps to Verify TDS Certificate on the TRACES Portal

Time needed: 5 minutes.

  1. Log into your Account.

    Visit the incometaxefiling to Login to your Account

  2. Select the option from the dashboard

    Navigate to the “My Account” drop-down list on the dashboard and select the “View Form 26AS” Option.

  3. Confirm” option

    Click on the “Confirm” to move to the TRACES portal.

  4. Agree and Proceed

    Agree to the terms by clicking on the check-box and click on the “Proceed” option when the pop-up appears.

  5. Select the “Verify TDS Certificate” Option

    From the “View/Verify Tax Credit” drop-down list on the dashboard select the “Verify TDS Certificate” option

  6. Fill in the details

    Thus, we move to the verification page of the TDS Certificate. Enter the following details in their respective fields:
    TAN of Deductor
    – TDS Certificate Number
    – Assessment Year
    – Source of Income
    – TDS Amount Deducted as per the Certificate (INR)

  7. Click on the “Validate” option.

    Hence, once the required details have been entered, click on “Validate”
    If the TDS certificate received by you is valid, then the website will show the same result. However, if the website shows that the TDS certificate is not valid, then you must contact the tax deductor and ask for a valid TDS Certificate.

FAQs

I have not received a TDS certificate from the deductor. Can I claim TDS in my return of income?

​​Yes, the tax credit, in this case, will be reflected in your Form 26AS and, hence, you can check Form 26AS and claim the credit of the tax accordingly. However, the claim of TDS to be made in your return of income should be strict as per the TDS credit being reflected in Form 26AS. If there is any discrepancy in the tax actually deducted and the tax credit being reflected in Form 26AS, then you should intimate the same to the deductor and should reconcile the difference. The credit granted by the Income-tax Department will be as per Form 26AS. ​

How can I know if my deductor has actually deposited TDS with the government and filed a TDS Return or not?

To check whether TDS is deposited by Deductor or not, the Deductee can select either of the following options:
1. Verify details of TDS Certificate from the ‘Verify TDS Certificate’ option available at TRACES
2. Download Form 26AS from TRACES
3. Download Form 26AS from your account on incometaxindiaefiling.gov.in

TRACES : Activate NRI Taxpayer Account

Once the taxpayer registration process is complete, the user receives a success message. This message is shown after the internal validations in the form are complete. On successful registration, the user receives the activation link and code on the registered e-Mail address within 48 hours. The users can use this link to activate their account on the TRACES portal. In case the validation process fails, the information is sent to the user’s registered e-Mail address within 48 hours.

Furthermore, if the user does not activate the link within 48 hours of receipt of mail, the user account in the TDS CPC would be deactivated. Additionally, all data entered by the user during registration will be removed from the system.

Steps to Activate the TRACES Account

  1. Access the message sent to you on your mail.

    It will include the “Activation Link to Activate Account” and the “Activation Code.”

  2. Navigate to the activation page and fill in the details

    Therefore, click on the “Activation Link to Activate Account” link to move to the activation page. Hence, enter the User ID and the Code sent through the mail in the respective fields.

  3. Activate your account

    Enter the captcha code shown in the image and click on the “Submit” option. Therefore, after the completion of the above steps, the account is activated and the following message will be shown.

In case the details entered in the “Account Activation” page are incorrect, the user would receive the following message.

FAQs

What do I do if I have forgotten my username?

The username to the TRACES NRI Taxpayer account is the same as the PAN number of the account holder.

I cannot access the www.nriservices.tdscpc.gov.in portal in India. What do I do?

The https://nriservices.tdscpc.gov.in/ can only be accessed from outside of India and not in India. Visit the www.tdscpc.gov.in link and log into your account using your credentials.

TRACES : NRI Taxpayer Registration

The Non-Resident Indian – NRI taxpayer can complete their registration process on to the TDS Reconciliation Analysis And Correction Enabling System (TRACES) portal, however, the link to access the TRACES portal for the NRI Taxpayers is different from that of the normal taxpayers. The NRI Taxpayers can perform the following activities through the portal:

  1. Registration
  2. View or Download Form 26AS
  3. Download / Correction Form 16B
  4. Manage profile
  5. Change password
The NRI Taxpayers have to access the www.nriservices.tdscpc.gov.in portal from outside India. Likewise, the NRI taxpayers need to visit the www.tdscpc.gov.in portal in order to access the TRACES portal from within India
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The NRI Taxpayers have to access the www.nriservices.tdscpc.gov.in portal from outside India. Likewise, the NRI taxpayers need to visit the www.tdscpc.gov.in portal in order to access the TRACES portal from within India

Steps to Complete NRI Taxpayer Registration process on TRACES

Time needed: 5 minutes.

  1. Visit the TRACES portal

    Visit the NRI Taxpayer TRACES page to register yourself as a user. (www.nriservices.tdscpc.gov.in).

  2. Register as New User

    Thereafter, click on the “Register as New User” option.

  3. Select Taxpayer option

    Select the “Taxpayer” option from the drop-down list and click on the “Proceed” option.

  4. Enter the required details

    Fill in these details in the respective fields:
    1. PAN number
    2. Date of Birth/Date of Incorporation
    3. Surname
    4. First Name
    5. Middle Name

  5. Hence, moving forward, enter details in either option 1 or option 2.
    In Case of Option 1 – Details of TDS Deducted/Collected

    Hence, enter the following details in their respective fields:
    1. TAN of Deductor
    2. Type of Deduction
    3. Month-Year
    4. TDS/TCS Amount (Amount should be entered in two decimal places such as 123.45)

  6. In case of Option 2- Challan detail of tax deposited by taxpayer

    Therefore, enter the following details in the respective fields:
    1. Assessment Year
    2. Challan Serial Number
    3. Amount (It should be entered in two decimal places such as 123.45)

  7. Enter the Captcha code

    Hence, enter the captcha code from the image given and click on the “Proceed” option.

  8. Enter the following details in the Address and Communication Details section:

    1. Flat/Door/Block Number
    2. Town/City/District
    3. State/Union Territory
    4. Country
    5. PIN Code
    6. Country Code – Mobile Number
    7. e-Mail ID

  9. Enter the following login details to complete the registration:

    1. Password
    2. Confirm Password
    3. Security Question
    4. Answer
    The user ID of the taxpayer account is the same as their PAN number.

  10. Click on the “Create Account” option to move forward.

    Hence, we move to a confirmation page. Verify the details and click on the “Confirm” option to move forward or “Edit” option in case you would like to make some changes to the details filled in.

Thus, an activation link is sent to the registered e-Mail ID and mobile number. Click on the activation link received to complete the registration process.

Additionally, a success message will be shown to the users after the successful completion of the registration process.

FAQs

What are the activities that an NRI Taxpayer can perform through the TRACES portal?

The following activities can be performed by the NRI Taxpayer:
1. Registration and Login
2. Request and Download Form 26AS
3. View and edit profile
4. Request and Download Form 16B (Buyer)
5. Change Password
6. Request and Download JR
7. Form 26QB Correction

How can the NRI Taxpayers activate their TRACES account after registration?

Once validation will be approved by TRACES (internally), e-mail for activation of account along with activation code will be sent to the user. To activate an account in TRACES, users have to click on the activation link sent to registered e-Mail ID and submit the activation code within 48 hours.

How do I register as a taxpayer on the TRACES website?

The following are the key steps for registration on TRACES:

1. Go to the TRACES website and click on the “Register as new” link to access the option to register as Deductor, Tax Payer or PAO
2. Enter the details such as PAN, Date of Incorporation/D.o.B and the Surname of the user in the respective fields

Thus, you will have to choose one out of the three options given to you to enter your information:

1. Details of TDS deducted/collected
2. Challan details of tax deposited by a taxpayer
3. Details of 26QB statement details filed by the buyer before a correction 

Hence, by moving forward with one of the 3 options given above, you will be able to complete the registration process.

TRACES : Update Profile Information Of NRI Taxpayers Account

The users can update certain parts of the profile information of their account on the TRACES portal. They can update the communication details and the login details of their accounts. Additionally, they can also change the password of their TRACES account. However, they cannot change the taxpayer details which consists of the information of their PAN number, Date of Birth (D.o.B), surname, and their first and middle name. Given below are the steps to update the Taxpayer information on the TRACES account.

Steps to Update Profile Information of NRI Taxpayer Account on TRACES

Time needed: 5 minutes.

  1. Visit the TRACES portal

    Visit the TRACES Portal and log into your Account. Therefore, click on the “Profile” option from the dashboard

  2. Click on the “Communication Details” option. Hence, you can update the information in the following fields:

    1. Flat/Door/Block number
    2. Town/City/District
    3. State/Union Territory
    4. Country
    5. PIN Code
    6. Mobile Number
    7. e-Mail ID
    Moreover, once the above fields have been updated, click on the “Save” option.

  3. Click on the Login Details.

    Thus, click on the “Login Details” option. Here, you can improve the security of your account by setting up a security question in case you have forgotten your password. Therefore, select a security question from the drop-down list. Hence, enter an answer to the security question you have chosen and click on the “Save” option.

FAQs

As an NRI non-individual, can I update the details of the authorized person in the profile?

The NRI non-individual will be asked to enter the PAN number of the authorized person and Date of Birth (D.o.B). Hence, they will submit a request for the PAN validation and D.o.B and an e-Mail will be sent to the user with the success or rejection message.

As an NRI non-individual, I have updated the details of the authorized person in the profile section. Can I proceed with the 26QB correction?

If the NRI user has submitted the details of PAN of the authorized person and proceeds with the Form 26QB correction tab, then the following error message will be displayed.
“Error Message: Updation of Authorized Person Details is in the process. The updations confirmed will be informed through an e-Mail. Hence, the user can then proceed for the 26QB correction”

How can the NRI Taxpayers activate their TRACES account after registration?

Once validation will be approved by TRACES (internally), e-mail for activation of account along with activation code will be sent to the user. To activate an account in TRACES, users have to click on the activation link sent to registered e-Mail ID and submit the activation code within 48 hours.