The Income-Tax (I-T) Department has launched its revamped and upgraded TDS Reconciliation Analysis and Correction Enabling System website i.e. TRACES portal aimed at providing single window access to TDS / TCS related services. Notably, it comes after the new I-T Act 2025 was brought into effect from 1 April 2026.
From 1 April, major changes in the tax compliance framework have been implemented aimed at expanding digital reporting, making tax administration more transparent for businesses and individuals alike. and streamlining tax filings.
How can taxpayers access the new TRACES portal?
- Taxpayers can access the new and upgrades TRACES website here — traces.tdscpc.gov.in
- Even if you go to the old TRACES website link, it will redirect you to the new portal.
- For NRI taxpayers, there is a separate TRACES portal made available — nriservices.tdscpc.gov.in
What’s new about the upgraded TRACES portal?
The new TRACES portal has a revamped interface with an upgraded design, new menu options and navigation paths. It provides a centralised dashboard to download your TDS forms, TDS certificates, track TDS credits and submit corrections.
For taxpayers looking to complete compliance for FY26 or earlier years there is a new menu path, where you must select the correct section from the menu bar “Compliance under Income Tax Act” tab.
What are the new TDS forms under I-T Act 2025?
As part of the I-T Act overhaul, there is transition of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) systems, aimed at saving time, reducing manual errors, avoiding mismatches, and ensuring faster processing.
As part of the new rules, the government has replaced the old Forms 24Q and 26Q with Forms 138 and 140. These forms continue to be used for quarterly reporting of TDS statements.
Form 138 is specifically used by employers (company, government body, or individual) to report the TDS deducted from salaries paid to employees under section 392. It is also used by specified banks to report tax deducted on pension and TDS on income paid to specified senior citizens.
Form 140 is a quarterly statement filed by deductors who are responsible for the deduction of tax at source on non-salary payments such as commission, brokerage, professional fees, or rent, made to residents.
Can property buyers use this new portal to deposit the TDS?
Economic Times cited Chartered Accountant and Tax2Win co-founder Abhishek Soni saying that property buyers cannot use the new portal to deposit TDS payment. These will continue to be made through the I-T e-fling portal using the challan-cum-statement Form 26QB.
Soni added that once filed, the TRACES portal can be used for post payment activities to download Form 16B, track TDS credits, verify transaction details, and make corrections if required, according to Soni.
What are the changes in TCS rules?
On the TCS front, the government has reduced rates in a bid to ease upfront tax burden on people.
- Foreign travel packages: Such deals will now be taxed at a flat 2% rate, replacing the earlier applicable rate of 5% (up to ₹10 lakh) and 20% for amounts above the ₹10 lakh threshold.
- Education and medical remittances abroad: TCS has been reduced from 5% to 2% on applicable amounts.
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