Income Tax TRACES Portal 2.0 : Complete Overview

The Income Tax Department has launched the new TRACES portal (TRACES 2.0) , introducing a major transformation in how TDS and TAN-related compliances will be handled in India. This update comes along with the implementation of the Income Tax Act, 2025, which becomes effective from 1 April 2026.

Earlier, all TDS-related work was managed through the old TRACES portal. However, with the introduction of the new law, a new interface and system has been developed to handle updated compliances more efficiently. At present, both old and new portals are active, which makes it important for users to clearly understand where to perform their work.

Old vs New TRACES Portal: What Has Changed?

Currently, the system is running on a dual-portal structure, and each portal has a specific purpose.

The old TRACES portal is still relevant for all compliances under the Income Tax Act, 1961, which remains applicable until 31 March 2026. This means tasks related to previous years—such as corrections in TDS returns, downloading certificates, and PAN verification—will continue to be done there.

On the other hand, the new TRACES portal is applicable for Tax Year 2026–27 onwards and is aligned with the Income Tax Act, 2025.

To make things easier, the new portal provides a direct option called “Compliance under Income Tax Act 1961”, which redirects users to the old portal whenever required.

In short:

• Old portal → Past compliances
• New portal → Future compliances

Key Features of the New TRACES Portal

The new portal is not just a design upgrade—it introduces several useful features that were missing earlier.

1. Modern Dashboard and Interface

The portal now has a clean and structured dashboard, similar to the income tax e-filing portal. After login, users can easily access different sections without confusion.

Main sections available on the dashboard include:

• E-File & View
• Services
• Pending Actions
• Downloads
• Option to switch to old portal

This improved layout helps professionals navigate faster and manage compliance more efficiently.

2. TDS & TCS Rate Charts (Most Useful Addition)

One of the biggest problems earlier was the lack of an official and clear TDS rate reference. The new portal solves this issue by providing complete TDS and TCS rate charts under the new law.

The portal clearly categorizes:

• Nature of payment
• Threshold limit
• Applicability
• Rate for Individuals/HUF
• Rate for others

Under the new Income Tax Act:

• Section 392 → Salary TDS & PF-related deductions
• Section 393 → Other TDS (rent, commission, interest, professional fees, contractors, etc.)
• Section 394 → TCS provisions

This feature is extremely helpful for professionals who were earlier confused about correct rates.

3. Income Tax Slabs & Treaty Rates

Apart from TDS/TCS rates, the portal also provides:

• Income tax slab rates (old & new regime)
• Double Taxation Avoidance Agreement (DTAA) rates
• Tax treaty rates for FY 2026–27 and 2027

This makes the portal a complete reference point for tax-related data.

4. Forms, Notifications & Learning Resources

The portal also acts as an information hub where users can access:

• Latest income tax forms (PDF format)
• Notifications and circulars
• Instructions issued by the department
• E-campaign updates
• Manuals (FAQs coming soon)

This helps users stay updated without relying on multiple sources.

5. Calculators (Helpful but Not Fully Updated)

The portal provides multiple calculators, including:

• TDS Calculator
• TCS Calculator
• Interest Calculator (for late deduction/delay)

However, there are some limitations:

• These calculators redirect to the income tax website
• Some still show old sections
• Results may not always be accurate

So, it is advisable to verify calculations before applying them in real cases.

Login, Registration & Dashboard Experience

Users can register or log in using their existing credentials. Since the portal is newly launched, some login issues may occur temporarily, but these are expected to be resolved soon.

After logging in, the dashboard provides a complete overview of your activities. It also includes an e-intimation section, where important alerts and updates are shown.

Important tip:
Users should update their mobile number and email ID, as future login may require OTP-based authentication.

Forms & Services: Current Availability

At present, the portal is still under development, and only limited services are available.

Currently available:

• Form 129
  • Used for salary payments to NRIs
  • Helps in applying for lower TDS deduction

Expected soon:

• More forms for lower/nil deduction certificates
• Additional compliance services

All certificates under the new Income Tax Act will gradually be generated from this portal.

Division of Work: PAN vs TAN

Even after the launch of the new TRACES portal, users must understand how work is divided between platforms.

Work done using PAN (Income Tax Portal)

• Tax calculation
• Tax payment
• ITR filing
• Certain TDS payments (property purchase, rent > ₹50,000)

Work done using TAN (TRACES Portal)

• TDS certificate generation
• Corrections in returns
• Default handling
• Compliance tracking

This separation still exists, which sometimes creates confusion.

Major Update: No TAN Required in Some Cases

A significant change has been introduced under the Finance Act 2026.

From 1 October 2026:

• TAN will not be required for TDS on property purchase from NRI
• Compliance can be completed using PAN only

This is a big relief for individuals and simplifies the process.

Current Challenges in the New TRACES Portal

Since the portal is still in its early phase, users may face some issues.

Some key challenges include:

• Many features are marked as “Coming Soon”
• Limited forms available
• Frequent redirection to old portal
• Complex DSC (Digital Signature) process
• Complicated authentication methods

These issues are expected to improve over time.

Conclusion

The launch of the new TRACES Portal 2.0 is a major step towards improving TDS compliance in India. It offers a better interface, official rate charts, and centralized access to important information.

However, the portal is still evolving, and many features are yet to be introduced. For now, users need to work on both old and new portals depending on the type of compliance.

Going forward, this portal is expected to become the main platform for all TDS-related activities, making compliance smoother and more efficient.

New Traces Portal 2.0 official link – https://traces.tdscpc.gov.in/