ET OnlineNew TDS TRACES 2.0 portal launched by I-T dept; Here’s how it can help taxpayers including property buyers (AI generated representative image)
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Last week, the Income Tax Department rolled out a new TRACES (TDS Reconciliation Analysis and Correction Enabling System) 2.0 portal. This upgraded TRACES 2.0 portal is a digital platform designed to streamline TDS compliance in line with the Income Tax Act, 2025 which came into force from April 1, 2026.
It replaces the previous TRACES system with a more user-friendly interface, improved functionality, and simplified reporting structure, making TDS-related processes more efficient, transparent, and integrated.
How to access the new TDS TRACES 2.0 portal and what it offers
The new website is accessible at traces.tdscpc.gov.in (with automatic redirection from the old URL) and the new portal features a completely revamped interface with improved user experience, simplified navigation, and streamlined workflows.
It offers a centralized dashboard where users can view Form 26AS and download TDS certificates such as Form 16, 16A, and 16B, track TDS credits, and submit online corrections efficiently.
Chartered Accountant Abhishek Soni, co-founder, Tax2Win, says that a major structural change is the introduction of a single “Tax Year” concept, replacing the earlier Previous Year (PY) and Assessment Year (AY) system, thereby reducing confusion and simplifying reporting.
Soni says that additionally, a dedicated option titled “Compliance under Income-tax Act, 1961” allows users to access historical data, file corrections, and download forms for FY 2025–26 and earlier.
For non-resident taxpayers, a separate portal (nriservices.tdscpc.gov.in) has been provided to specifically cater to their compliance needs.
Overall, with a centralized dashboard, users can conveniently access Form 26AS, AIS, and TDS credit details in one place, reducing the need to navigate multiple platforms. The improved interface and streamlined workflows minimise errors while filing or reviewing tax information.
Can property buyers use this new portal to deposit the TDS?
According to Soni, property buyers cannot use the TRACES 2.0 portal to deposit TDS. The actual payment of TDS, such as in property transactions (e.g., under Section 194-IA), must be made through the Income Tax e-filing portal using the challan-cum-statement Form 26QB.
Once the TDS is successfully deposited and processed, the TRACES 2.0 portal comes into play for post-payment activities. Buyers can log in to TRACES to download Form 16B (the TDS certificate for the seller), track TDS credits, verify transaction details, and make corrections if required.
Soni says: “Therefore, TRACES 2.0 functions as a compliance and tracking platform rather than a payment gateway.”
Soni’s advice is in order to make the best use of TRACES 2.0 under the Income Tax Act, 2025, taxpayers should regularly monitor their dashboard for TDS credits and discrepancies, promptly download and verify certificates, use the correct Tax Year, act quickly on any errors within the limited correction window, and maintain proper documentation to ensure smooth and accurate compliance.
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