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 the Statement Status of Form 26QC is ‘Processed with Default’, the buyer can submit a request to download ‘Form 26QC – Justification Report’ from their registered account on TRACES. The ‘Form 26QC – Justification Report’ is available AY 2018-19 onwards and consists of the detailed information of defaults or errors while processing the TDS Return filed. Once the taxpayer views the errors, he/she should file a correction TDS return to rectify the same.
Steps to Download Form 26QB Justification Report from TRACES
- Log in to TRACES
- Navigate to Justification report download
Go to Statements / Forms > Request for Justification Report Download
- Form 26QC
Select Form Type – 26QC to submit the request for Justification Report
- Select the required options from the drop-down list
Enter the search criteria.
- Use DSC to complete validation
You can opt for the DSC KYC validation method or the normal KYC option.
- Validate DSC
After validating the DSC, one time KYC page will be displayed for the FY + Quarter + Form type combination has been selected by the user.
- Enter the password
A pop-up named “signing data with your private exchange key” will appear, enter the password in the appropriate field, and select the signature to complete the validation.
- Enter in the required details
Enter the Token number and fill in the details in Part 1.
- Token Number Details
Enter in all the details as mentioned in the image below.
- Success Page
You will be redirected to a success page after the KYC details have been validated.
- In case of normal KYC validation
Enter in the token number details
- Enter the required details
Fill in the details such as BSR code, CIN details, etc as shown in the below image.
- Authentication Code
Next, we move to the authentication code screen. Copy the code given on the screen.
- Request number
Hence, we move to the request number screen.
- Requested Downloads
Navigate to the requested downloads option from the dashboard.
- Status of Request
You can view the status of the request you have submitted.
- Download the file
Click on the HTTP Download button to download the file. A zip file is downloaded. Password to open ‘Form 26QC – Justification Report’ Zip file is ‘PAN of Tenant‘of the property in capital letters. E.g. AABPA1212A
FAQs
1. Submitted – The taxpayer has submitted a request
2. Available – The system has processed the request. The taxpayer can download the Justification Report
3. Failed – The request has not been processed due to a technical issue. The taxpayer should submit the request once again or contact CPC(TDS)
The taxpayer can download the ‘Form 26QC – Justification Report’ in a zip file. The Password to open ‘Form 26QC – Justification Report’ zip file is ‘PAN of Tenant’ of the property in capital letters. E.g. AABPA1212A
Under section 194IB of the income tax act, if any individual or HUF to whom tax audit is not applicable makes payment of rent to a resident landlord exceeding INR 50,000 per month, then he/she needs to deduct TDS from rent and needs to file Form 26QC. TAN is not compulsory for filing Form 26QC. PAN of the tenant and PAN of the landlord is compulsory.
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!
@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.
hello, i want to cancel the TDS on sale of property (26QB) which i created in hurry. i have made login and tried the TRACES refund option. But the total amount of TDS is “Consumed” and Max refund amount is zero.
What is my option now? TDS was paid on 16th Oct ( 6 days back). Hoping for a solution on this.
Hi @nisshant
26QB is the challan cum return statement. As soon as you file the form, TDS amount paid by you gets utilized. There are few corrections that are allowed in form 26QB. You can refer to the article below. You cannot get the refund of the taxes paid through an online method. You can contact concerned Assessing Officer (AO) of the Income Tax Department (ITD).
You can also contact Aaykar Sampark Kendra (ASK) on Toll Free No. 1800-180-1961 to ask for help.
Hope this helps!
Hi,
I had raised a form26-QB correction request, but since the correction request also had some errors, I requested the AO officer to cancel the correction request.
Now as the old request has been closed, I would like to file a new correction request. Can I register DSC and file this new request for auto approval?