TRACES is a web portal provided by the Income Tax Department to the assessee to administer their TDS-related matters. This web portal provides services like checking the status of challan, Conso file download, download of justification report, and TDS certificates like Form 16/ Form 16A/ Form 16B/ Form 16C/ Lower deduction certificate – LDC, viewing Form 26AS, etc.
In order to download the TDS Certificate user has to register themselves either as Deductor, Taxpayer, PAO, and Deductor whose authorized person is a foreign national.
To comply with the provisions of TDS Section 194IB for TDS on sale of Immovable Property, Section 194IA TDS on rent of property and Section 194M TDS on payment to resident contractors, TDS on payment of a commission, Brokerage charges and fees for professional services following TDS certificate has to be issued by the buyer of the immovable property, Tenant and the payer in the respective cases: –
Form 16B can be downloaded by the buyer from the assessment year 2014-15 onwards, Form 16C can be downloaded from the assessment year 2018-19 onwards by the tenant whereas Form 16D can only be downloaded from the assessment year 2020-21 onwards by the payer
Form 16B – TDS Certificate [where the buyer of the property has to issue a TDS Certificate to the seller of the property]
Form 16C – TDS certificate [where the tenant of the leased/ rented property i.e., the deductor has to issue a TDS certificate to the landlord of the leased/ rented property i.e., landlord] within the stipulated time period.
Form 16D – TDS Certificate [to be issued by the deductor on payment to resident contractors and professionals to the deductee]
Steps to register on the TRACES website as New User
Login to the TRACES web portal and select “Tax Payer” under the Register as New User as depicted in the picture below.
Enter your PAN, Date of Birth, or Date of Incorporation as the case may be, First Name, Middle Name, Last Name/ Surname, and the verification code.
Validation process where the user has to authenticate its identity, where the user has to enter the relevant details as applicable: –
- Details of TDS/ TCS Deposited
- Challan Details of Tax Deposited by Taxpayer
- Details of Form 26QB
- Authentication through Aadhaar
Here the user enters the details regarding communication address and contact information.
The user’s unique ID will be the PAN and the user can create the password and choose the security question answer under step 4.
Confirmation step where user can confirm all the details entered so far and submit the registration application on TRACES. On successful submission of the registration request, the activation link and codes will be emailed to the respective users. Follow the instruction as shown in the images below.
After successful processing of the TDS return, the user will receive the email i.e., firstname.lastname@example.org stating that the regular statement for Acknowledgement number XXXXXXX filed by the user has been processed and no defaults have been identified for the said statement.
Steps to download the TDS certificate
Step A: submit a request to download Form 16B/ Form 16C/ Form 16D from the downloads option available on the main menu.
Select the applicable Form Type, and relevant Assessment Year, and enter the Acknowledgement Number and PAN of the seller/ Landlord/ Payee.
When the status of Form 16B changes from “submitted” to “available” then the user can select the row and should click on HTTP Download.
Enter the password i.e., the Date of Birth of the buyer in DD/MM/YYYY format. Provide the same to the seller after signing the same.