TRACES (TDS Reconciliation Analysis and Correction Enabling System) is the Income-tax Department portal at tdscpc.gov.in, run by CPC-TDS. Deductors log in with their TAN to download Form 16/16A/27D, file TDS-return corrections and clear defaults. Taxpayers (deductees) log in with their PAN to verify TDS credits and view Form 26AS. Employees cannot download Form 16 themselves — only the deductor can, and must issue it by 15 June.
What Is TRACES & Who Uses It?
TRACES connects the three parties in every TDS transaction — the deductor who deducts and deposits tax, the deductee (taxpayer) whose tax is deducted, and the government. It reconciles what deductors report in their TDS returns against the challans actually paid, then makes the validated credit visible in each taxpayer’s Form 26AS.
Only your employer (the deductor) has access to download Form 16 Part A. Your employer must issue it to you by 15 June each year. If it is not issued, you can still verify the TDS from Form 26AS / AIS on incometax.gov.in and file your ITR from that data — the employer is liable for a penalty under Section 272A.
TRACES for Deductors — What Employers & Companies Do
Any TAN-holder who deducts TDS — company, firm, LLP, trust, government office or an individual under tax audit — logs in as a Deductor. The core functions:
| Function | What it does | Where in TRACES |
|---|---|---|
| Download Form 16 (Part A) | Salary TDS certificate summary, generated only from TRACES | Downloads → Form 16 |
| Download Form 16A | Non-salary TDS certificate (interest, rent, professional fees) | Downloads → Form 16A |
| Download Form 27D | TCS certificate for tax collected at source | Downloads → Form 27D |
| File return corrections | Fix wrong PAN, amount or challan in a filed 24Q/26Q | Defaults → Request for Correction |
| View & pay defaults | Short deduction / short payment / late-fee demands | Defaults → View Defaults |
| Download Conso file | Consolidated return file to prepare a correction in RPU | Downloads → Requested Downloads |
Deductor registration needs the TAN, the deductor PAN and the challan details of the first TDS deposit.
Section 206AB (the higher-rate deduction for non-filers of returns) was repealed with effect from 1 April 2025. You no longer run a compliance-status check on each payee before deducting; only the Section 206AA 20% rate for a missing PAN survives.
Need corrections filed or Form 16A issued on time? Get your TDS returns handled.
Get TDS Return Filing →TRACES for Taxpayers — Verify Your TDS Credits
As a deductee you use TRACES mainly to confirm that every rupee of TDS shows up against your PAN before you file your return. Form 26AS is now opened from the income-tax portal (incometax.gov.in → e-File → Income Tax Returns → View Form 26AS), which redirects to TRACES.
- Verify Form 26AS — all TDS/TCS credits, advance-tax and self-assessment payments against your PAN.
- Cross-check AIS — the Annual Information Statement adds interest, dividends, share & mutual-fund transactions beyond 26AS.
- Download TDS certificates — Form 16A/16B/16C where the deductor has not issued them.
- Reconcile before filing — match 26AS/AIS with your Form 16 and books so no TDS credit is lost in your ITR.
TRACES Login — Deductor vs Taxpayer
| User type | Login as | Credentials | Key actions |
|---|---|---|---|
| Deductor (employer / company) | Deductor | TAN + password | Download Form 16/16A/27D, file corrections, clear defaults |
| Taxpayer (employee / deductee) | Taxpayer | PAN + password | View Form 26AS, verify credits, download certificates |
| PAO (Pay & Accounts Officer) | PAO | AIN + password | Government-deductor functions, Form 24G |
Portal: tdscpc.gov.in → Login. Helpline 1800-103-0344. First-time deductors must register with TAN + first-challan details.
Since April 2023 the Annual Information Statement (AIS) on incometax.gov.in carries a fuller data set — mutual-fund and share transactions, foreign remittances, interest and dividend — alongside TDS credits. Check both Form 26AS (via TRACES) and AIS before you file your ITR.
Common TDS Issues Fixed via TRACES
Most 26AS mismatches trace back to a deductor error in the filed return. Here is what causes each and how TRACES resolves it.
| Issue | Root cause | Resolution on TRACES |
|---|---|---|
| TDS not showing in Form 26AS | Return filed with wrong PAN, or TDS not deposited | Deductor files a correction with the correct PAN; 26AS updates in 7-10 days |
| OLTAS challan mismatch | Wrong BSR code / date / serial in the return | Deductor corrects challan details; OLTAS re-validates the match |
| Form 16 not issued | Employer delays or fails to download it | Verify TDS from 26AS/AIS and file the ITR; employer liable u/s 272A |
| Short-deduction demand | Tax deducted at a lower rate than required | Deductor pays the shortfall + interest via Challan 281, updates TRACES |
| Excess TDS deducted | Wrong rate or duplicate deduction | Claim the full credit in the ITR and get it as a refund |
OLTAS (Online Tax Accounting System) records every Challan 281 payment; the return’s challan data must match OLTAS for credit to flow.
How to Correct a Wrong PAN in a Filed TDS Return
- Log in to TRACES as the Deductor (TAN + password)
- Defaults → Request for Correction → pick FY, quarter, form (24Q/26Q)
- Download the Justification Report to find the wrong entries
- Download the Conso file and edit it in RPU, generate the FVU file
- Upload the corrected statement on TRACES
- Wait 7-15 days — 26AS re-credits to the correct PAN automatically
Filing a correction to fix a wrong PAN or amount before a default notice carries no penalty. Wait until CPC-TDS raises a demand, though, and you may face late-fee under Section 234E (₹200/day) and interest under Section 201 — so reconcile and correct proactively.
Facing a 26AS mismatch, PAN error or TDS demand? Let our team file the correction.
Talk to a TDS Expert →TRACES Portal — Frequently Asked Questions
Related TaxClue services
TDS Mismatch, PAN Error or Form 16 Issue?
From TRACES corrections and Justification-Report fixes to Form 16/16A and quarterly 24Q/26Q filing, TaxClue's CA-led team sorts deductor defaults and helps taxpayers claim every TDS credit — 100% online across India.