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). A Deductor deducts TDS on making payment to a Deductee. He/she deposits the TDS with the Income Tax Department and files the TDS Return. However, sometimes there can be a reduction in TDS deducted in the current period as compared to the TDS deducted in the previous period. In that case, the Deductor can submit a declaration for lower deduction and/or lower payment of TDS along with relevant reasons. He/she can then file a TDS Return after deducting TDS at a lower rate.
Steps to submit Declaration on TRACES to deposit lower TDS
- Log in to TRACES
Log in to TRACES – Enter User Id, Password, TAN or PAN and captcha
- Navigate to Declaration to deposit lower TDS
Go to Statements / Payments > Declaration to Deposit Lower TDS
- Select financial year, quarter and form type
Select the Financial Year, Quarter and Form Type i.e. 24Q, 26Q, 27Q, 27EQ for which you want to submit a declaration to deposit lower TDS. Click on ‘Add Statement Details‘
- Add nature of payment
Under the section ‘Lower Deposit Statement Details’, click on ‘Add Nature of Payment‘. Select the section from the drop-down list.
- Add TDS lower by per cent
Click on ‘Add TDS Lower By %‘. Enter the number by which you want to reduce the TDS Rate.
- Reason for lower TDS deposited
Select the appropriate reason for lower TDS deposited for the previous year from the drop-down list.
- Select the checkbox
Select all the checkbox and click on ‘I Agree‘ to submit the declaration. If you click on ‘I Disagree‘, you will go back to the previous page.
- Authorised person
Details of the Authorised Person will appear on the screen. Verify the details and click on ‘Proceed’
- Success message
A success message will appear on the screen. You will receive the details of the statement for which you have made the declaration on your email.
FAQs
Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such a specified payment. But no TDS has to be deducted if the person making the payment is an individual or HUF whose books are not required to be audited.
This means that when the total amount of the transactions exceeds the limit specified in the certificate, tax at the normal rates as prescribed in the Act is to be deducted on the amount exceeding the limit. TDS should be deducted at the rate prescribed in the certificate.
1. Registration in the TRACES portal is mandatory
2. Login in TRACES and under “Statements / Form” tab select “Request for Form 13“
3. Form 13 would be displayed and appropriate details need to be filled up by the applicant; and
4. Once all the details are filled up and appropriate documents are uploaded, the applicant is required to submit the form 13 either by using Digital Signature or by using EVC
Hey @HarishMehta
Taxpayers or deductee cannot directly download form 16/form16A, the option to download Form 16/ 16A has been given to the Deductor. So, if you need Form 16 / 16A for TDS deducted by your current or previous employer or deductor you will have to contact them for the same. There is no option available on TRACES whereby you can download it yourself.
Hope this helps!
Hey @Dia_malhotra
Yes, individuals can still register as a taxpayer on TRACES even if they do not have TAN of the deductor by providing:
• Assessment Year
• Challan Serial Number and
• Amount of tax you have paid
Hope this helps!
In my Justification Report it shows an interest payable error whereas I’ve already paid the interest for that particular month According to the regulations what could be the reason for this?
Hi @saad,
According to regulations, interest payment default/errors may arise due to error in challan details , short deduction, short payment, late deposit of TDS amount. Here, you can file correction statement and revise the return.
Hope this helps!
Hi
I am not able to register the DSC despite many trials. I keep getting the error:
‘Error in establishing connection with TRACES Websocket Esigner. Please ensure that WebSigner Setup is installed and service is running on your machine and there are no proxies enabled on the browser while doing DSC activities’
Could you kindly help. I have tried all the instructions, as per below:
I have un-installed any previous versions of Java and emsigner.
I have installed Java 8, update 162 and 32 bit version on my Windows 10 machine
Downloaded TRACES-WebSigner-V2.0 and installed emsigner. The emsigner is running on my system.
Google Chrome is up to date. (Version 92.0.4515.131)
I have the DSC driver (e-pass 2003) installed.
I have rebooted and made sure the websigner (emsigner) is running.
When I go to my profile → Signature section, no window pops up, nothing loads, and if I click on ‘Request DSC’, I get the above error.
Could you point to me what I can do to make this work please. Do I need any physical device to generate tokens? I am logging in from the nri traces webpage. Thanks.
Preetham
@AkashJhaveri @Saad_C @Kaushal_Soni @Divya_Singhvi @Laxmi_Navlani can you help with this?
Hey @raopreetham, the first thing I would recommend you to do is to run the Emsigner as an administrator. Also, if it still does not seem to work, install the below mentioned JAVA fixer software and run it as an administrator and hopefully this would resolve your issue.
https://johann.loefflmann.net/downloads/jarfix.exe
The USB e-pass 2003 token device is particular type of a DSC.
Facing issues with TRACES Portal or registration? Get quick solutions for PAN verification, Form 26AS access, and TDS compliance all in one place.
Need help registering or navigating TRACES? Understand the steps for hassle-free TDS filing and compliance management.