The Income Tax Department has rolled out TRACES 2.0, an upgraded version of its TDS Reconciliation Analysis and Correction Enabling System, with the aim of bringing TDS and TCS services onto a more streamlined platform.
The new system is designed to make routine tasks simpler for taxpayers and deductors, allowing them to access Form 26AS, download TDS certificates, check credit details and submit correction requests without navigating multiple layers.
As reported by Mint, the rollout comes after the Income Tax Act, 2025 took effect on April 1, 2026. The department has also introduced a separate portal for non-resident taxpayers at nriservices.tdscpc.gov.in. Users attempting to access the earlier TRACES website are now automatically redirected to the updated version.
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TRACES streamline
The platform brings multiple tax-related services under one roof.
At the centre of the revamp is a single dashboard that gathers functions which were earlier split across different sections. From here, users can review their Form 26AS, download certificates including Form 16 and Form 16A, and follow their tax credit records without having to jump between pages.
The interface has been reworked to make routine actions less cumbersome while giving a more direct view of tax information as it appears in the system. It also expands correction-related features, enabling users to raise requests, cross-check transaction details and track challans with fewer steps. For pending matters from previous years, there is a separate section that allows users to handle older compliance requirements alongside the new framework.
Property deals still the old way
Despite the overhaul, certain processes remain unchanged, such as TDS payment on property transactions, which must still be completed through the income tax e-filing portal using Form 26QB.
Some procedures continue to sit outside the TRACES ecosystem. TDS payments linked to property deals must still be completed through the income tax e-filing portal. After that, users can return to TRACES 2.0 to download Form 16B, review credit entries or make corrections where required.
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With the changes, the department appears to be focusing on making TDS-related compliance less fragmented, while aiming to reduce errors and make information easier to access.
