A Step-by-Step Guide to Registering TAN on TRACES Portal

What is a TAN Number?

TAN stands for Tax Deduction and Collection Account Number.

• It’s a 10-character alphanumeric code issued by the Income Tax Department of India.
• Example: NGPA12345A
• Mandatory for anyone (individuals, companies, government bodies, etc.) who is required to deduct or collect tax at source under the Income Tax Act, 1961.

Purpose of TAN

1. Identify the Deductor/Collector — Similar to how PAN identifies taxpayers, TAN identifies entities responsible for TDS (Tax Deducted at Source) or TCS (Tax Collected at Source).
2. Quote in TDS/TCS Returns — Must be mentioned in all TDS/TCS returns, certificates, challans, and correspondence with the Income Tax Department.
3. Track TDS Payments — Helps CPC (Centralized Processing Cell) match tax deducted with the relevant payee’s PAN in Form 26AS.

What is TRACES?

TRACES = TDS Reconciliation Analysis and Correction Enabling System.

• It’s an online portal maintained by the Income Tax Department (https://www.tdscpc.gov.in)
• It allows deductors, collectors, and taxpayers to view TDS/TCS data, file corrections, download forms, and reconcile statements.

Why Register TAN on TRACES?

Registering your TAN on TRACES is mandatory for a deductor to:

• Download Form 16/16A (TDS Certificates for employees/vendors)
• View Form 26AS details for deductees
• File correction statements for TDS returns
• Check challan status and link challans to deductions
• Submit requests for justification reports, refund status, and consolidated files
• Respond to notices related to short deductions, late filings, etc.

Without registration, you cannot access these services online — meaning you’d be stuck with physical requests and delays.

Step-by-Step Breakdown

1. Visit TRACES and Begin Registration

• Go to the official TRACES portal at www.tdscpc.gov.in and click “Register as New User”.
• Choose “Deductor” as your user type and click Proceed.

2. Enter TAN and CAPTCHA

• Provide your TAN and the on-screen verification captcha code, then click Proceed.

3. KYC Validation Using Statement Details

• The system auto-populates fields like Financial Year, Quarter, and Form Type.
• Manually enter the Token Number from a processed, non-nil TDS statement corresponding to the pre-filled fields.
• Provide CIN/BIN details and select corresponding PAN–amount combinations using the “Guide to” feature.

Note: Statements must be processed at CPC and not nil—unprocessed or nil entries will result in errors.

4. Enter Organization & Contact Details

• Provide details such as:
  • Category of Deductor
  • PAN of Deductor (not required for government deductors)
  • PAN, Date of Birth, Name, and Designation of the Authorized Person
• Choose whether to fetch your address and communication details from TAN Master or your last filed statement.

5. Create User ID & Password

• Set a User ID and a strong password (8–14 characters, with uppercase/lowercase, numbers, and optional special characters like &, comma, semicolon).

6. Confirm Submission

• Review all entered details on the confirmation screen. Use the Edit option if changes are needed, then click Confirm to submit.

7. Account Activation

• After submitting, you’ll receive:
  • An email with an activation link and Activation Code 1
  • SMS with Activation Code 2
• Click the activation link and enter both codes to activate your account. Note: Activation must occur within 48 hours, or the request will expire.

Quick Fix: If codes expire but still fall within the 48-hour window, re-enter your TAN in step 1 and click Submit—the system will prompt to resend the codes.

8. Login to Your Account

• Once activated, log in to the portal using your User ID and password along with TAN and the captcha or verification code.

Summary Table