With the dawn of the new financial year and the implementation of the Income-Tax Act, 2025, the Income Tax Department has launched a significant upgrade to its digital infrastructure: the TRACES 2.0 portal. This revamped platform serves as a single-window solution for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) services, designed to enhance transparency and reduce manual errors.
The following tables summarize the critical updates, new forms, and procedural changes effective from April 1, 2026.
1. Portal Access and Navigation
| Feature | Details |
| Primary Portal URL | traces.tdscpc.gov.in |
| NRI Services URL | nriservices.tdscpc.gov.in |
| Core Navigation | Use the “Compliance under Income Tax Act” tab for FY 2025-26 and prior years. |
| Key Functions | Centralized dashboard for Form 26AS, TDS certificate downloads, and credit tracking. |
2. Transition of Statutory Forms (I-T Act 2025)
The new Act has replaced long-standing forms to reduce manual errors and ensure faster processing.
| Old Form | New Form | Purpose / Coverage |
| Form 24Q | Form 138 | Quarterly statement for TDS on Salaries (Section 392) and bank reporting for senior citizens. |
| Form 26Q | Form 140 | Quarterly statement for TDS on non-salary payments (Rent, Professional Fees, Commission) to residents. |
| Form 26QB | Form 26QB | Remains active on the I-T e-filing portal for TDS on property purchases. |
3. Revised TCS Rates
To ease the upfront tax burden on taxpayers, several TCS rates have been significantly reduced under the new regime.
| Category | Previous Rate | New Rate (TRACES 2.0) |
| Foreign Travel Packages | 5% (up to ₹10L) / 20% (above ₹10L) | 2% (Flat) |
| Education Remittances | 5% | 2% |
| Medical Remittances | 5% | 2% |
4. Procedural Guide for Taxpayers
| Task | Platform / Process |
| Paying TDS on Property | Must be done via the I-T e-filing portal using Form 26QB. |
| Downloading Form 16B | Available on TRACES 2.0 after the 26QB payment is processed. |
| Correcting TDS Returns | Handled through the “Online Corrections” facility on the TRACES 2.0 dashboard. |
| Tracking Credits | Real-time tracking of tax credits is available through the upgraded interface. |
This transition to TRACES 2.0 is aimed at making tax compliance more transparent for both businesses and individuals, ensuring that the digital reporting framework is robust enough to handle the requirements of the new Income-Tax Act.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
