TRACES Portal Updated: All TDS and TCS-Related Tasks Can Now Be Resolved in a Snap

Updated TRACES Portal: Filing taxes has become even easier. Under new regulations, the TRACES portal has been updated, and the TCS rate applicable to foreign travel has also been reduced.

Updated TRACES Portal: Providing significant relief to taxpayers, the Income Tax Department has completely revamped its TRACES portal. Coinciding with the implementation of the new Income-Tax Act (Income-Tax Act, 2025)—effective from April 1, 2025—this digital platform has also been given a complete makeover. Its primary objective is to minimize paperwork and enhance the transparency of the tax process.

What Has Changed in the New Portal?

According to a report by CNBCTV18, the new portal has been designed as a 'single-window' interface. You will no longer need to navigate to multiple different locations to handle tasks related to TDS and TCS. Users accessing the old links will now be automatically redirected to the new portal. Additionally, a separate portal has been established specifically for non-residents to ensure they face no difficulties.

Which New Forms Need to Be Filed?

The government has simplified the process by replacing the old TDS return forms. Now, Form 138 (for salaries and pensions) will replace Form 24Q, while Form 140 (for rent, commissions, and professional fees) will replace Form 26Q. These forms are to be filed on a quarterly basis, which will facilitate easier data matching and expedite the processing of refunds.

What Are the Rules for Property Buyers?

If you are purchasing a house or land, the procedure for depositing TDS remains unchanged. Buyers will still be required to visit the Income Tax e-filing portal and fill out Form 26QB. However, for tasks such as downloading the certificate after payment or making corrections, you will need to utilize the new TRACES portal.

What Is the Benefit of the 'Tax Year' Concept?

Until now, taxpayers often found themselves confused by the distinction between the 'Assessment Year' and the 'Previous Year.' Under the new system, this has been eliminated, and the concept of a single "Tax Year" has been introduced. Furthermore, the TCS rate on funds remitted for foreign travel, education, and medical treatment has been reduced to 2%, representing a significant saving for the general public.