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). The Deductor can verify the validity of PAN individually or download a consolidated TAN-PAN file. It is an excel file containing the list of valid PANs for a particular Financial Year, Quarter, and Form Type. This service avoids the mistake of entering invalid PANs while filing a TDS Return i.e. 24Q, 26Q, 27Q, 27EQ, etc.
Steps to verify PAN or Download Consolidated TAN-PAN master from TRACES
- Log in to TRACES
- Navigate to PAN Verification
Go to Statements / Payments > PAN Verification
- Verify the validity of PAN
Verify the validity of PAN using either of the following options.
- Option 1: Search PAN
- Option 2: Download Consolidated TAN – PAN File
- KYC Validation using DSC
Option 1: KYC Validation using DSC
- KYC validation without using the DSC
Option 2: Complete the KYC validation without using the DSC
- Request to download consolidated TAN-PAN
Once the KYC details are successfully validated, the request to download Consolidated TAN-PAN File is submitted. A unique Request Number is generated.
- Navigtate to requested downloads
Go to Downloads > Requested Downloads
- Request number/date
Enter the Request Number or Request Date or View All. Select the applicable row. If the status is ‘Available’, click on the download button.
Note: If the status is ‘Submitted’, please wait for 24 to 48 hours for the status to change to ‘Available’
- Download the file
Click on the HTTP Download button to download the file. Consolidated TAN-PAN file is downloaded in excel format
Consolidated TAN – PAN file is the master file with details of all the taxpayers related to TAN of the deductor. This file consists of the valid PANs for which the deductor has filed TDS or TCS statements.
Using the PAN Verification service on TRACES, a Deductor can verify whether the PAN provided by the Deductee is valid as per the Income Tax Department database. The Deductor can verify individual PANs or download the Consolidated TAN-PAN File from his account on TRACES. If the PAN is invalid, the Deductor should deduct TDS at a higher rate.
The Deductor should deduct TDS along with surcharge at a higher rate of 20% in the following cases:
1. Deductee has not provided the PAN
2. Deductee has provided an invalid PAN
3. The given PAN belongs to some other assessee
4. Deductee has provided a PAN which is not in the database of the Income Tax Department