The Income Tax Department has launched TRACES 2.0 portal to simplify tax compliance and enhance transparency under the new tax regime. The TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal rollout aligns with the implementation of the Income-Tax Act, 2025, which came into effect on April 1, marking a significant step in India’s digital tax transformation.
Key Highlights
- Income Tax launches TRACES 2.0 portal, simplifies TDS compliance under new Income-Tax Act 2025.
- New forms, unified dashboard, and tax year concept aim to reduce errors, improve transparency.
The revamped TRACES 2.0 portal introduces a single-window interface for all Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) services. It enables taxpayers and businesses to access certificates, track credits, file corrections, and manage compliance seamlessly from a centralised dashboard.
Users accessing the older system are automatically redirected to the new platform, while a separate portal has been introduced for non-resident taxpayers.
A key highlight of the upgrade is the redesigned interface, offering improved navigation and structured access to services. The central dashboard allows users to download TDS certificates, access forms, and track filings efficiently.
The system also includes a dedicated compliance section to help users manage obligations under both the new law and previous financial years, reducing confusion and improving efficiency.
New TDS forms introduced
As part of the overhaul, the government has replaced existing TDS return forms to streamline reporting:
- Form 138 replaces Form 24Q for salary-related TDS
- Form 140 replaces Form 26Q for non-salary payments such as rent, commission, and professional fees
These forms will continue to follow quarterly filing cycles but are expected to reduce mismatches and speed up processing.
For property transactions, the process remains unchanged. Buyers must continue using Form 26QB via the e-filing portal for TDS payments. However, the TRACES 2.0 portal will support post-payment services such as downloading Form 16B, verifying details, and tracking TDS credits.
In a significant shift, the updated system replaces the traditional distinction between assessment year and previous year with a single “tax year,” aiming to simplify compliance for taxpayers.
Also Read: Income Tax & Office Changes April 1, 2026: What It Means for You
Push towards digital tax ecosystem
The RACES 2.0 portal is part of a broader government push to digitize tax administration. Authorities aim to reduce errors, improve transparency, and make compliance more user-friendly for individuals and businesses.
Recent updates to the e-filing portal, including new forms and integrated payment systems, further support the transition to the new tax framework.
