TRACES means TDS Reconciliation Analysis and Correction Enabling System. It is the online portal for administration and implementation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). Once the Deductor files the TDS Return, it is processed by TDS-CPC. If any sum is payable, the TDS department issues a TDS Notice or Demand Notice to the Deductor. The Deductor can view the total outstanding demand in the TRACES account.
- To know the reasons for the issue of Demand Notice – Download Justification Report
- Pay outstanding demand through Challan No. ITNS 281 – How to pay TDS / TCS Challan online?
- To make corrections and changes in the data of TDS Return – Download a Conso File
- File a ‘Correction Statement’ to rectify the errors in TDS / TCS Return
Steps to check Outstanding Demand on TRACES
- Log in to TRACES
- Outstanding demand
Under ‘Dashboard’, there is a tab of Outstanding Demand. The amount represents outstanding demand across all the financial years. Click on the Amount
- Demand table
The demand table will appear on the screen with details of Financial Year, Manual Demand and Processed Demand
1. Click on ‘Prior Years’ hyperlink to view previous years demand
2. Manual Demand – Click on the amount to close the demand with the option of Tag Challan and navigate to ‘Tag/ Replace Challan’
3. Processed Demand – Click on the Financial Year against Processed Demand to view demand details and navigate to ‘Default Summary’
- Challan details
Under the tab, ‘Defaults’, you can go to ‘Tag / Replace Challan‘. Select the row and click on ‘View’ to view the challan details. Click on ‘Tag Challan’ to tag a new challan. Use ‘Replace Challan’ to edit the already tagged challans.
- Default summary
Under the tab ‘Defaults’, you can view the ‘Default Summary’ to view the details of default. Select the Financial Year and Quarter. Click on ‘Go’. Click on the hyperlink under the Quarter column to view the detailed default summary. You can click on ‘Request for Correction’ to submit a correction request
Deductor can check the total Outstanding Demand from the account on TRACES. To pay the outstanding demand, go to TIN-NSDL website to pay Challan No. ITNS 281. Refer to the stepwise process to pay the challan online.
1. Go to https://incometaxindiaefiling.gov.in/ and login to the portal
2. Go to My Account tab and click on view Form 26AS (Tax Credit)
3. Select the year and PDF format to download the file and proceed further.
4. Open the downloaded file.
5. The password to open this file is your date of birth mentioned on you PAN, e.g. if your birth date is 1st January 1990 then your password will be 01011990
6. After opening Form 26AS you will get information regarding total income on which TDS is deducted and TDS credited to your account
7. If you have an internet banking facility and your PAN is linked to it, then you can use your bank’s net banking portal to check your TDS online.