The Income Tax Department has launched the revamped TRACES 2.0 portal to enhance TDS compliance, according to reports from Livemint. The new website provides a single window access to TDS/TCS related services and comes after the new I-T Act 2025 was brought into effect from 1 April 2026. The portal features a user-friendly interface with streamlined navigation that allows users to access Form 26AS, TDS certificates, and track credits efficiently.
Taxpayers can access the new TRACES portal at traces.tdscpc.gov.in, as reported by Livemint. The portal includes a centralised dashboard for downloading TDS forms, TDS certificates, tracking TDS credits and submitting corrections. For NRI taxpayers, there is a separate portal available at nriservices.tdscpc.gov.in. The system provides a new menu path for taxpayers looking to complete compliance for FY26 or earlier years under the 'Compliance under Income Tax Act' tab.
As part of the I-T Act overhaul, the government has replaced old Forms 24Q and 26Q with Forms 138 and 140 for quarterly reporting of TDS statements, according to Livemint. Form 138 is specifically used by employers to report TDS deducted from salaries under section 392 and by specified banks for pension and senior citizen income. Form 140 is filed by deductors responsible for tax at source on non-salary payments such as commission, brokerage, professional fees, or rent to residents. The new 4-digit TRACES payment codes (1001-1092) have replaced the old section-based codes in all TDS returns from FY 2026-27.
On the tax collected at source (TCS) front, the government has reduced rates in a bid to ease upfront tax burden, as reported by Livemint. Foreign travel packages 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 ₹10 lakh threshold. Education and medical remittances abroad have been reduced from 5% to 2% on applicable amounts. The 4% Health and Education Cess is levied on the sum of TDS amount plus surcharge for all categories of taxpayers.
According to Chartered Accountant Abhishek Soni from Tax2Win, property buyers cannot use the new portal to deposit TDS payment and these will continue through the I-T e-filing portal using challan-cum-statement Form 26QB, as reported by Livemint. However, the TRACES portal can be used for post payment activities to download Form 16B, track TDS credits, verify transaction details, and make corrections once filed. The new TDS return forms (Forms 138, 140, 143, 144) replace the old Forms 24Q, 26Q, 27Q, and 27EQ, with Form 121 replacing Forms 15G and 15H for self-declaration to avoid TDS on interest income.
