As part of another notification, the CBDT has made it mandatory for employers to download and issue Part-B of Form 16 to employees only from the TRACES portal. The notification in this regard came on May 6, 2019.
TRACES is synonymous to TDS Reconciliation Analysis and Correction Enabling System.and the facility enables the viewing of challan status, downloading of Form16/16A as well as annual tax credit statements, i.e., Form 26AS.
In the earlier regime, while Part A of the form had to mandatorily downloaded from TRACES, part B could be taken from third-party software and thus it lacked standardization.
Now the mandate, will provide symmetry to form 16 which earlier was as per the requirement of the employer in respect of Part B.