The Income Tax department rolled out the new TRACES (TDS Reconciliation Analysis and Correction Enabling System) 2.0 platform last week. The upgraded portal has been designed to aid in streamlining Tax-Deducted at Source (TDS) compliance processes in accordance with the new Income Tax (I-T) Act which came into effect on April 1, 2026.
The new platform aims to provide a more user-friendly interface, replacing the old TRACES portal, with improved functionality and simpler reporting structures. The portal aims to make TDS-related processes more integrated, efficient, and transparent for taxpayers.
How To Access New TRACES Portal
The new platform can be accessed at traces.tdscpc.gov.in, which will direct you to the new portal with revamped features. Among its new features, are a centralised dashboard for users to view Form 26AS (annual tax statement) as well as download TDS certificates such as Forms 16, 16A (salary and non-salary TDS certificates), and 16B (property sale tax certificates). It also allows you to track TDS credits and submit corrections online effectively.
Along with this, the new portal has also replaced the earlier Previous Year (PY) and Assessment Year (AY) system with the introduction of a single “Tax Year” concept. This aims to reduce confusion for applicants and simplify reporting processes. The new platform also offers a dedicated option under “Compliance under Income-tax Act, 1961” through which one can access historical data, file corrections, and download forms for FY 2025–26 and earlier.
There is also a separate portal for non-resident taxpayers at nriservices.tdscpc.gov.in. The centralised system allows users to conveniently access Form 26AS, AIS, and TDS credit details, all in one place. This reduces confusion and streamlines all services under one roof. The new interface will also minimise errors while filing or reviewing tax documents and details.
Who Does the TRACES Portal Cater To?
The TRACES portal can only be used after the TDS payment is made. The portal cannot be used to make a TDS payment. The TDS payment, such as in the case of property transactions under Section 194-A of the I-T Act, has to be made through the Income Tax e-filing portal. For this case, challan-cum-statement (Form 26QB) needs to be used.
Once the taxpayer makes the TDS payment and it is processed successfully, only then can the TRACES portal be used. Users can log in to TRACES and download Form 16B, track TDS credits, verify transaction details, and make corrections if required.
Source from: https://www.outlookmoney.com/tax/income-tax-department-launches-tds-traces-20-key-features-and-benefits-for-taxpayers
