It is an online portal through which the income tax proceedings related to TDS TRACES Form 16B, Form 16A, and Form 26AS are carried out. The full form of TRACEs is TDS Reconciliation Analysis and Correction Enabling System. Also, it has saved the time of all the individuals who had to visit the office for all the legal proceedings including the filing of TDS.īut, what all activities are carried out and how is all of this done? Let’s find out here What Is TRACEs? But, the coming in of all the technological advancements and their incorporation for legal procedures has been of great benefit and relief to the government, making it easier for them to maintain records. When the onset of digitalization did not take place, all the legal work was manual, with the people having to wait for their turns for long hours just to file a form to complete the registration. So a comprehensive system was introduced by the authorities in the form of TRACEs. But the amount of set offs required too many regulations and compliances which in the larger picture was burdening the resources of businesses.
The person who pays the taxable income is made responsible for calculating, deducting and remitting the taxable income before making the payment to the taxpayer. The TDS system is a very efficient way of plugging the leak in tax revenue when it came to income groups with a uniform source. One of the aspects of the system that urgently needed some sort of digital solution was the TDS system. With the highest number of taxpayers in the world, against a severely understaffed and underfunded tax department, digitization became a top priority in terms of solving the massive tax leaks in our tax revenue collection system. So it goes without saying that digitization is not just an advancement but a necessity for a country as populous and yet enterprising as ours. Population is a very large factor when it comes to considering digitization. In this article we will discuss the TRACEs system launched by the government and understand its features and it functioning
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