TRACES Portal: Who Qualifies and What You Get
Learn how to verify your tax credits and ensure your clients have correctly deducted and deposited your tax.
The TRACES Portal is an online system used to verify that the tax deducted at source by your clients has been correctly credited to your account. This digital tool allows you to monitor your tax credits and ensure that the money being withheld from your payments is properly recorded.
Who it's for
This portal is specifically for taxpayers who work with clients that deduct tax at the source. If you are a freelancer, a contractor, or an employee where tax is withheld from your income before it reaches your bank account, you are the intended user of this verification system. It is essential for anyone needing to confirm that their tax deductions are being handled correctly by third parties.
What you get
The primary benefit of using this portal is the ability to perform verification of your tax credits in Form 26AS. Form 26AS is the official document that shows the tax deducted on your behalf. By using the TRACES portal, you can check these records to ensure that the tax credits reported by your clients match the actual amounts that were deducted from your earnings. This step is vital for accurate tax filing and ensuring you receive the full benefit of the taxes you have already paid.
What it costs you
Accessing the TRACES Portal does not require a monetary fee. However, it does require your personal tax information to function. You will need to have your PAN and your specific login credentials ready to access the system. These credentials are necessary to ensure that you are viewing only your own private financial and tax information.
The catch to know
The most important thing to understand is that the system relies on your clients to do their part. If a client deducts tax from your payment but fails to file their required TDS return, the credit will not show up in your records. Even if the money was taken from your pay, you must ensure the client has completed their filing obligations, or you will not see that credit reflected in your Form 26AS.
How to apply
- Ensure you have your PAN and your login credentials ready.
- Navigate to the official government portal.
- Log in to the system using your tax identification details.
- Access your Form 26AS to verify your tax credits.