The move reflects a broader push towards digitisation, with authorities seeking to simplify procedures, reduce errors, and enhance transparency for both individuals and businesses.
The revamped portal offers a single-window interface for all TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) services. Users accessing the older TRACES link are automatically redirected to the new system, while a separate portal has been introduced for non-resident taxpayers.
A key change is the redesigned user interface, which features improved navigation and a more structured layout. A centralised dashboard now allows users to download TDS certificates, access forms, track credits, and request corrections in one place. A dedicated compliance section helps users locate options related to the new law as well as earlier financial years.
The overhaul also replaces existing TDS return forms. Form 24Q and Form 26Q have been substituted with Form 138 and Form 140. Form 138 applies to salary-related TDS reporting by employers and specified banks handling pensions, including certain cases involving senior citizens. Form 140 covers non-salary payments such as rent, commission, brokerage, and professional fees. Both forms retain quarterly filing but aim to reduce mismatches and speed up processing.
For property transactions, the process for depositing TDS remains unchanged. Buyers must continue to use Form 26QB through the Income-Tax e-filing portal. The TRACES portal will, however, facilitate post-payment services such as downloading Form 16B, tracking TDS credits, verifying details, and making corrections.
The updated system also introduces the concept of a single “tax year,” replacing the earlier distinction between assessment year and previous year, in an effort to reduce confusion among taxpayers.
Separately, the government has eased certain TCS provisions by lowering the rate to 2% on remittances for overseas travel, education, and medical purposes. Officials clarified that while TRACES handles tracking and documentation, tax payments will continue through the e-filing portal.
