Process for updating employees' new PAN numbers and the subsequent steps to ensure a smooth transition without impacting the Quarter 2 report and Form 16. 

Process Overview:
1.    Update Employee PAN Numbers:
    Please proceed to update the new PAN numbers for the affected employees

2.    Populate Employee Data for the Current Quarter:
    After updating the PAN numbers, it is essential to populate the employees' data for the current quarter. 

3.    Download the File from Traces:
    Download the required data file from Traces for Q1. 

4.    Manual Correction of PAN Numbers:
    In the downloaded file from Traces, identify the employees whose PAN numbers have been updated. Manually correct the PAN numbers for that employee.

5.    Re-upload on Traces:
    Once the PAN numbers have been corrected in the Traces file, re-upload the file on the Traces platform. This step is crucial to ensure that the corrected PAN numbers are reflected accurately in tax records.

By following these steps meticulously, we can ensure that the updated PAN number is accurately reflected in the Quarter 2 report and Form 16, preventing any discrepancies or issues.