Centralized Processing Cell (TDS) has observed that Online Corrections have been submitted by deductors on TRACES website by using Digital Signature Certificate. However, there was no Registered Digital Signature Certificates (DSC) was available in his profile on TRACES website.

Immediate Attention:

  • The Centralized Processing Cell (TDS) has provisioned for use of Digital Signature Certificate (DSC) on its web-portal TRACES for availing various services offered by the portal. As per Section 204 read with Section 200 of the Income Tax Act, 1961 and other relevant provisions for deduction of tax ‘Authorized Person’ is referred to as ‘Person Responsible’.
  • TRACES has provided facility for Admin to facilitate authorized Sub-users to carry out activities on TRACES and submit to the Admin user. The Admin user has the rights to approve the activities using the DSC.
  • For availing above services, only the DSC of the ‘Person Responsible’, as appearing in the ‘Profile’ of the Deductor on TRACES, should be used.

However, the system log of Centralized Processing Cell (TDS) evidences that:

  • The PAN of the Authorized Person was changed to a PAN belonging to a person other than the Authorized Person
  • The DSC of such person has been used to submit Online Corrections and
  • After completing the transaction, the PAN has later been reverted back to that of the Person Responsible, which does not have a DSC.
  • Digital Signature means authentication of any TDS electronic record. It keeps record of the person who is availing the facility. Use of Digital Signature should be made with due caution. Sharing of DSC by any person would also be liable for consequences. In accordance with the Information Technology Act, 2000, every subscriber is require to retain control of the private key corresponding to the public key listed in his Digital Signature Certificate to prevent its disclosure.

It is therefore, advised to refrain from using the Digital Signature of any person other than the Authorized Person appointed by the deductor, for carrying out any activity on TRACES.

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Category : Income Tax (27495)
Type : Articles (16980)
Tags : TDS (1024) TRACES (55)

0 responses to “Inappropriate Usage of Digital Signature for availing services of TRACES”

  1. sreepal Reddy says:

    We filed the etds returns form 26q with authorized person signed by name ‘x’ at the time of submitting form 26q the profile in TRACES wad x’s but one day later we submitted Etds form 24Q with another person name ‘Y’ also updated profile of Y in TRACES

    Now can Y use his DSC (Digital signature Certificate) for Form 16 & Form 16A generation?

  2. ram babu b.com says:

    100 years For ur. Timely article. I thought of doing what u advised -not to do. While appreciating the advise- u should have published this reminding the dept. Of its duty to give necessary info. Hhh.immediately without making the assessee to run from pillar to post. At hyderabad particularly. After approaching the dept. How many hours…days….weeks 1 is made to wait.

    In this context My ? IS I WILL DO WHAT YOU ADVISED NOT TO DO. IF AT ALL THE DEPT. TAKES ANY LEGAL ACTION I WILL SURRENDER SAYING THAT I AM FORCED TO AS THE DEPT. DID NOT PROVIDE THE INFO. IN TIME.
    .
    IN SUCH case ? What will be the ……

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