Details required for registration with TRACES for TDS Deductor & Tax Payer

The following details are required for registration with TRACES:

For Deductors

Step-1:

TAN of Deductor

Step-2:

1. Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen.

2. Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows.

Step-3:

1. PAN of Deductor
2. PAN of Authorised Person (person responsible for deduction of tax at source)
3. Date of Birth of Responsible Person as in PAN database
4. Designation of Responsible Person
5. Communication Address
6. Mobile Number
7. Email Id

For Tax Payers

Step-1:

1. PAN of Tax Payer
2. Date of Birth as on PAN Card
3. Name as in PAN database

i) Option 1-Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and amount of tax deducted.

ii) Option 2-Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan.

Step-2:

1. Communication Address
2. Mobile Number
3. Email Id

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Employers required to collect PAN of the lender banks from the employees to claim Interest in House Property in the salary return

The Finance Act, 2015 had introduced a new section 192(2D) of the Income-tax Act, wherein the employer was obliged to collect the necessary evidence or proof in Form 12BB  to allow any claim for any deduction and/or tax saving investments.

One of the requirements in Form 12BB for claiming the interest on house property is to provide the PAN of the lender i.e. the financial institutions, NBFC or others from where the loan is taken, if available. Though the same is not a mandatory requirement in Form 12BB, the same has been made mandatory in the Annexure-II required to be filed in the salary return – From 24Q for the last quarter of the financial year. The same was made effective from 1st June 2016 by the CBDT by way of its Notification No. 30/2016 dated 29 April 2016.

In case the PAN is not available, no deduction of interest shall be allowed and the total tax deduction of the employees shall be higher than previously deducted.

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How can foreign deductees without PAN avoid higher TDS?

NRI’s and foreign companies need to furnish PAN details or else they have to pay higher TDS rates. However, they can avoid higher TDS in absence of PAN card, by submitting the alternative documents listed below

They need to submit:

  • Name, email id and contact number
  • Address of the foreign deductee
  • Tax Residency Certificate (TRC) from the Government of that country if the law of that country provides for issuance of such certificate
  • Tax Identification Number (TIN) or any other Unique Identification Number (UIN) of the foreign deductee from the country where he is resident

However these rules are not applicable in the following cases and PAN is mandatory to avoid higher TDS  –

  • Fees for technical services
  • Interest
  • Royalty
  • Payments on transfer of any capital asset
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TDS Computation When an Employee Works for 2 Companies (Employers) in a Financial Year

There are 2 types of scenarios in which an individual may be working for more than one employers in a financial year. they are as follows:

• When he changes his job
• When he is working for two employers simultaneously

In each case the employee needs to provide following details to the employer who will be furnishing Form 16 at the end of the year:

• Detail of the previous employers like its name, PAN number, TAN number
• The breakup of his salary
• Deductions related to Provident fund and details of rent free accommodation, if any
• Deductions under various sections like 80C, 80D, 80E, 80G and 24
TDS on salary deducted by the employer
• Professional tax paid by the employer

While preparing the tax computation for the employee, the employer will include the details such provided.

 

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