Finance Minister P. Chidambaram will dedicate to the nation a Centralised Processing Cell (CPC) for Tax Deducted at Source (TDS) on Saturday.

The CPC (TDS) located at at Vaishali in Ghaziabad (U.P) in the NCR region is expected to ease the compliance norms of tax payment by facilitating proper reconciliation.

According to a Finance Ministry statement here, the CPC (TDS) “will provide the tax deductors, taxpayers and the assessing officers a wide range of online services related to TDS through a functionality designated TDS Reconciliation, Analysis and Correction Enabling System (TRACES).”

TRACES, through its portal – https://www.tdscpc.gov.in -- will provide a bouquet of services like viewing and downloading of Form 26AS by taxpayers and downloading of consolidated files for filing of correction statements. The facility of downloading of TDS Certificates in Form 16 and 16A by tax deductors, the statement said, is a measure of convenience for the deductees and will facilitate proper reconciliation between credit of taxes paid by deductors and claimed by deductees.

TRACES will also enable multiple modes of communication to reach out to the deductors and deductees for immediate correction, reconciliation and matching of TDS payments.

Also, banks, being the most important tax deductors, will now have the facility to file correction statements online to minimise the difficulties faced by tax deductees in claiming credit of tax deducted at source. “It is expected that this facility will, to a large extent, ameliorate the problem faced by tax payers of mismatch in credit of tax deducted and claimed in the Return of Income,” it said.

Other unique features of the CPC(TDS) are a toll-free call centre (No. 1800 103 0344) which is already functional for the convenience of tax deductors/ deductees and instant communication facilities by way of e-mail (contactus@tdscpc.gov.in) and SMS alerts.

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