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). To use the services like submit an online correction, update the profile and to access all downloads, KYC Validation is mandatory. KYC Validation can be done using DSC and without using DSC. If the Deductor opts for a Normal KYC Validation without DSC, he/she should complete validation separately for each service. The Deductor can also opt for KYC validation using DSC and avoid multiple KYCs in the same session.
KYC Validation is required for the following services:
- Register as a Deductor on TRACES
- Reset the password on TRACES
- Reset User ID on TRACES
- Download Form 16A on TRACES
- Download Form 16 (Part A and Part B) on TRACES
- Download Justification Report on TRACES
- Download Conso File on TRACES
Step by Step Process for KYC Validation without using DSC on TRACES
- Log in to TRACES
- Download Request
Select ‘Profile’ or any ‘Download Request‘ or ‘Correction Request‘ under the tab ‘Defaults’
- Normal KYC Validation
For KYC Validation, select the option ‘Normal KYC Validation (Without Digital Signature)‘
- Enter the token number
The system auto-populates a Financial Year, Quarter, and Form Type. You need to complete the KYC verification for the same. Enter the Token Number of a Regular (Original) TDS Return.
Note: Enter the Token Number manually. Do not Copy/Paste. Enter Token Number of an original TDS return and not corrected return
- Enter the CIN details
Under Part 1, enter Challan Identification Number (CIN) details of a challan used in the TDS return:
1. BSR Code or Receipt Number
2. The date on which tax is deposited – enter in dd-mm-yyyy format eg: 10-Jan-2019
3. Challan serial number or DDO serial number – 5 digit number eg: 00025
4. Challan amount or Transfer voucher amount – enter the amount with decimal places eg: 1569.00
5. CD Record Number – It is not mandatory to enter this. It should be filled when the same challan is mentioned more than once in the statement (TDS Return)
- Enter PAN combination
Under Part 2, enter unique PAN-Amount Combination for Challan:
1. If there is no valid PAN in the challan details, select the checkbox
2. PAN as in Statement – Enter the valid PAN reported in TDS Return. You can enter details of a maximum of 3 valid PANs. If there are less than three combinations, enter all combinations (one or two)
3. Total Amount Deposited – Enter the TDS deposited for the PAN. Enter the amount with decimal places eg: 1569.00
- Authentication code
The system validates the KYC information and generates an Authentication Code which is valid for the same calendar day for same form type, financial year and quarter
- Success page
The success page will appear on the screen once the KYC details are validated. Copy the Authentication Code and paste it in the blank box
Yes. The KYC validation is valid for one session only. If you log out from the account or the session expires, you have to login once again and complete the KYC validation to access the services.
You need to enter the data of at least 3 unique combinations of PAN and Amount. If there is more than one PAN, enter data of at least 3 unique PANs. Further, CIN of that challan should be entered which has been claimed for at least two, three or more PANs.
Enter the valid PAN reported in TDS Return. You can enter details of maximum 3 valid PANs. If there are less than three combinations, enter all combinations (one or two). Each combination entered should be unique. View Step 6 of the Article to refer an example.