Income Tax Department Launches Upgraded TRACES Portal for Easier Compliance

The Income Tax Department of India has introduced an upgraded version of the TRACES portal to streamline tax compliance processes. The rollout aligns with the implementation of the new Income-Tax Act, 2025, effective April 1, marking a significant step towards digitisation and improved transparency.

The initiative aims to simplify procedures, minimise errors, and enhance user experience for both individuals and businesses.

Unified Platform with Enhanced Features

The revamped TRACES portal now offers a single-window interface for all TDS and TCS-related services. Users are automatically redirected from the older system, ensuring a seamless transition.

A redesigned user interface with improved navigation and a structured layout makes it easier to access services. The centralised dashboard allows users to download TDS certificates, track credits, access forms, and request corrections from one place. Additionally, a dedicated compliance section helps users manage requirements under both the new law and previous financial years.

Introduction of New TDS Forms

As part of the overhaul, the department has replaced existing TDS return forms. Form 24Q and Form 26Q have been substituted with new forms, Form 138 and Form 140.

Form 138 applies to salary-related TDS reporting by employers and certain banks handling pensions, while Form 140 covers non-salary payments such as rent, commission, brokerage, and professional fees. These updated forms aim to reduce mismatches and speed up processing while maintaining quarterly filing requirements.

Continued Support for Property Transactions and TCS Changes

For property transactions, the process for depositing TDS remains unchanged, with buyers continuing to use Form 26QB through the e-filing portal. However, the TRACES portal will support post-payment services like downloading Form 16B and tracking credits.

The updated system also introduces a single “tax year” concept, replacing the earlier distinction between assessment and previous years. Additionally, the government has reduced the TCS rate to 2% on certain overseas remittances, offering relief to taxpayers.

Conclusion

The revamped TRACES portal represents a major step towards modernising India’s tax ecosystem. With improved usability, updated forms, and a unified interface, the platform is set to make tax compliance more efficient, transparent, and user-friendly for all stakeholders.

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