Understanding and Utilising the TDS Transactions Record through TRACES

Form 26AS is a document that summarizes tax-related information for a particular financial year. It is a comprehensive statement that includes Taxes paid, such as Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and self-assessment tax. Furthermore, it also showcases information regarding refunds received and high-value transactions.

The income tax Department generates the document. It can be accessed through the Tax Deductors and Collectors System (TRACES) portal by using the taxpayer's Permanent Account Number (PAN). It serves as an essential record for taxpayers as it aids in verifying the tax credit claimed in the Income Tax Return and reconciling tax paid with the Tax Liability. Taxpayers must check the information in Form 26AS before filing their Income Tax Return to ensure that all the transactions have been reported correctly.

What is Form 26AS?

Form 26AS is a statement that contains details of tax credits received by an individual or a company during a financial year. This statement includes taxes paid, deducted, and collected by the government. It also includes details of any refunds received by the taxpayer. The information in Form 26AS is used to match the tax credit claimed by the taxpayer with the taxes paid to the government.

What are TRACES?

The Tax Deductors and Collectors System is a web-based portal maintained by the Income Tax 26as Traces. It is designed to provide services to tax deductors, taxpayers, and collectors.

Objectives of TRACES

Below-mentioned are some basic objectives of TRACES:

• The main objective of TRACES is to provide a centralized system for the TDS and TCS process and to ensure compliance with tax laws
• TRACES enables tax deductors and collectors to register, file TDS or TCS returns, and make payments online
• It also allows them to view the status of their TDS or TCS returns, download TDS or TCS certificates, and check the status of their payments
• The portal also allows taxpayers to view and download Form 26AS, a consolidated statement of all tax-related transactions for a specific financial year
• One of the key features of TRACES is the e-TDS or TCS filing system. Tax deductors and collectors must file the returns electronically through the portal. The e-filing system is user-friendly and allows taxpayers to file their returns quickly and easily. It also eliminates the need for the physical submission of returns and certificates, making the process more efficient and convenient

What are the Services Provided on TRACES?

TRACES provides various services for tax deductors, taxpayers, and tax collectors. The main services include are:

• e-TDS/TCS Filing: Tax deductors and collectors can register, file TDS or TCS returns, and make payments online. This eliminates the need for the physical submission of returns and certificates, making the process more efficient and convenient
• TDS/TCS Certificate Issuance: Tax deductors and collectors can issue TDS/TCS certificates online. Taxpayers can also view and download their TDS/TCS certificates online
• TDS/TCS Refund Tracking: Taxpayers can track the status of their TDS/TCS refund claims online
• TDS/TCS Credit Tracking: Taxpayers can view the status of TDS/TCS credit in their Form 26AS and check for any discrepancies
• TDS/TCS Notice Issuance: TRACES is used to issue and track TDS/TCS notices
• TDS/TCS Error Rectification: TRACES facilitates rectifying TDS/TCS errors and mismatches, making it easier for taxpayers to resolve issues and stay compliant with the tax laws
• Form 26AS: Taxpayers can view and download their Form 26AS, a consolidated statement of all tax-related transactions for a specific financial year
• TDS/TCS Payment Tracking: Tax deductors and collectors can check the status of their payments online

TRACES is a valuable tool that simplifies the TDS/TCS process and provides a Range of services that help to ensure compliance with the tax laws and make the process more efficient and convenient for taxpayers

How to log in to TRACES for Form 26AS?

To log in to the TRACES portal, taxpayers must have a PAN and a password. The PAN is used as the username to log in to the portal. If the taxpayer does not have a password, they can request one through the TRACES portal by selecting the 'Forgot Password' option. Once the password is reset, the taxpayer can log in to the portal and access Form 26AS. It is important to ensure that the login credentials are kept confidential.

To log in to TRACES for Form 26AS, you will need to follow these steps:

• Go to the TRACES website (https://www.tdscpc.gov.in/app/login.xhtml)
• Click on the "View Form 26AS (Tax Credit)" link on the homepage
• Enter your Permanent Account Number (PAN) and select the assessment year for which you want to download Form 26AS
• Click on the "Submit" button
• You will have to verify your identity using the Aadhaar-PAN linking option or the Net-Banking option
• For the Aadhaar-PAN linking option, Enter the Aadhaar Number and the captcha code
• Click on the "Validate" button
• For the Net-Banking option, Select the Bank and click "Continue"
• Follow the instruction to log in to your bank account and authorize the bank to share your account details with TRACES

How to View Form 26AS through TRACES Login?

To view Form 26AS, taxpayers must log in to the TRACES portal using their PAN (Permanent Account Number) and password. Once logged in, the taxpayer can view their Form 26AS by selecting the 'View Tax Credit (Form 26AS)' option under the 'My Account' menu. The statement can be viewed in either pdf or XML format. The taxpayer can check the form to ensure that the credit for taxes paid is reflected in the tax credit statement.

To view Form 26AS through TRACES login, you will need to follow these steps:

• Go to the TRACES website (https://www.tdscpc.gov.in/app/login.xhtml)
• Click on the "View Form 26AS (Tax Credit)" link on the homepage
• Enter your Permanent Account Number (PAN) and select the assessment year for which you want to view Form 26AS
• Click on the "Submit" button
• You will be asked to verify your identity using the Aadhaar-PAN linking option or the Net-Banking option
• For the Aadhaar-PAN linking option, Enter the Aadhaar Number and the captcha code
• Click on the "Validate" button
• For the Net-Banking option, Select the bank and click "Continue"
• Follow the instruction to log in to your bank account and authorize the bank to share your account details with TRACES
• Once your identity is verified, you will be taken to the Form 26AS view page
• You will be able to view the details of the transactions, including the date, amount, and tax credit

How to Download Form 26AS from TRACES?

To download 26AS from TRACES, you will need to follow these steps:

• Go to the TRACES website
• Click on the "View Form 26AS (Tax Credit)" link on the homepage
• Enter your Permanent Account Number (PAN) and select the assessment year for which you want to download Form 26AS
• Click on the "Submit" button
• You will be asked to verify your identity using the Aadhaar-PAN linking option or the Net-Banking option
• Once your identity is verified, you will be taken to the Form 26AS download page
• Select the format in which you want to download Form 26AS. You can choose between PDF, HTML, and CSV formats
• Click on the "Download" button
• Save Form 26AS on your computer or device
• Open the downloaded file and view the information contained in it. This way, you will be able to download 26as from traces

It's important to note that you should have your PAN linked to your Aadhaar before downloading Form 26AS. Otherwise, you will have to use the Net-Banking option, which may require additional steps to verify your identity. Also, you should review the information in Form 26AS before filing your income tax return to ensure that all the transactions have been reported correctly. In case of any discrepancy, you should contact the deductor or collector or the Income Tax Department to get it corrected.

Conclusion

In conclusion, Form 26AS Traces is an essential document for taxpayers that provides a comprehensive overview of their tax-related transactions. The document is a valuable tool for reconciling tax credit and liability and verifying the information reported in the income tax return. Taxpayers should review Form 26AS before filing their income tax return and take steps to rectify any errors or discrepancies to ensure compliance with the tax laws and avoid potential notices from the Income Tax Department.

Frequently Asked Questions (FAQs)

1. Can I download Form 26AS in multiple formats?

A: Yes, Form 26AS can be downloaded in either pdf or XML format through the TRACES portal.

2. What should I do if I forget my TRACES login password?

A: If taxpayers forget their TRACES login password, they can request a new password through the TRACES portal by selecting the 'Forgot Password' option.

3. What is the difference between regular Form 26AS and TDS Traces Form 26AS?

A: Regular Form 26AS contains details of tax credit received by an individual or a company for all taxes paid, while TDS Traces Form 26AS contains details of tax credit received for taxes deducted at source (TDS).

4. Can I access Form 26AS of a previous financial year?

A: Yes, taxpayers can access Form 26AS of previous financial years through the TRACES portal by selecting the appropriate year while logging in.

5. Do I need to provide any additional documents while accessing Form 26AS?

A: No, Form 26AS can be accessed with just a PAN and password through the TRACES portal.

6. Is it necessary to check Form 26AS before filing my income tax returns?

A: Yes, checking Form 26AS before filing Income Tax Returns is recommended to ensure that the credit for taxes paid is reflected in the tax credit statement and to avoid any discrepancies.

7. Who should file form 26as?

A: The tax deductor has to file the TDS return every quarter, which is reflected in form 26AS afterward. This part comprises the name and the TAN of the deductor.

8. Is 26as mandatory?

A: Yes, Form 26AS is mandatory as it acts as proof of tax deducted and collected at source. It also offers confirmation that the entity, be it the bank or the employer, has deducted appropriate tax and deposited the same to the government account.