Income Tax Department Launches TRACES 2.0 Portal to Enhance TDS Compliance
New TDS TRACES 2.0 portal launched by Income Tax Department; know how it helps taxpayers & property buyers
The Economic Times
Image: The Economic Times
The Income Tax Department has launched the TRACES 2.0 portal to streamline Tax Deducted at Source (TDS) compliance. This upgraded platform features a user-friendly interface and centralized dashboard, allowing taxpayers to easily access TDS-related documents and track credits, although TDS payments for property transactions must still be made through the Income Tax e-filing portal.
- 01TRACES 2.0 portal enhances TDS compliance with improved user experience.
- 02Introduces a single 'Tax Year' concept, simplifying reporting.
- 03Property buyers must use the Income Tax e-filing portal for TDS payments.
- 04Centralized dashboard allows easy access to TDS certificates and tracking.
- 05Non-resident taxpayers have a dedicated portal for compliance needs.
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The Income Tax Department has introduced the TRACES 2.0 portal, designed to improve the efficiency and transparency of TDS compliance under the Income Tax Act, 2025, effective from April 1, 2026. This revamped platform features a user-friendly interface and a centralized dashboard, allowing users to view Form 26AS, download TDS certificates like Form 16, 16A, and 16B, and track TDS credits. A significant change is the adoption of a single 'Tax Year' concept, replacing the previous Previous Year (PY) and Assessment Year (AY) system, which simplifies reporting. However, property buyers cannot use the TRACES 2.0 portal to deposit TDS; payments must be made through the Income Tax e-filing portal using Form 26QB. Once TDS is deposited, the TRACES 2.0 portal can be used for post-payment activities, including downloading certificates and verifying transaction details. Taxpayers are advised to regularly monitor their dashboard for discrepancies and maintain proper documentation for accurate compliance.
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The TRACES 2.0 portal simplifies TDS compliance for taxpayers, potentially reducing errors and improving the efficiency of tax processes, which can lead to smoother transactions for property buyers and sellers.
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