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). When a tenant pays rent exceeding Rs. 50,000 per month to the landlord, he/she deducts TDS u/s 194IB. The tenant files Form 26QC and issues Form 16C to the landlord. The TDS Return i.e. Form 26QC is processed by CPC-TDS.
If there are any defaults or errors, the taxpayer can view the summary under the option ‘Form 26QC – Default Summary’ in the TRACES account. The tenant can view the ‘Default Summary’ for Form 26QC from FY 2017-18 onwards. For detailed information on the defaults or errors and file a Correction Statement, the taxpayer should download the ‘Form 26QC – Justification Report’ from the TRACES account. Once the taxpayer views the errors, he/she should file a correction TDS return to rectify the same.
Steps to View or Download Form 26QC Default Summary from TRACES
- Log in to TRACES
- Navigate to view default summary
Go to Statements / Forms > View Default Summary
- Select Form 26QC
Select Form Type – 26QC to view ‘Default Summary’
- Enter the required details
Select the ‘Financial Year’ from the drop-down list. Enter ‘Acknowledgement Number‘ and ‘PAN of Landlord‘. Click on ‘Proceed‘
- View the default summary
You can view the ‘Default Summary‘ for the selected Acknowledgement Number
FAQs
Yes, you can make an online correction on the basis of the default summary. However, it is advisable to download the updated Justification Report from TRACES. Justification Report provides detailed information about the defaults/errors that needs to be rectified by filing a Correction TDS Return
As per section 194IB of the income tax act, tenant of the property being an individual/HUF (not liable to tax audit under the income tax act) is required to deduct and deposit TDS on monthly rent if rent paid exceeds INR 50,000 and the landlord is a resident of India.
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.