At the heart of India’s tax compliance, the Income Tax Department operates through two primary portals: the Income Tax Portal for filing returns and assessments, and TRACES for TDS reconciliation and return filing.
Now, with the beginning of the Tax Year 2026-27, and the implementation of the Income Tax Act, 2025, both portals have been updated to reflect these changes. While we’ve already looked at the Income Tax Portal, let’s now walk through the TRACES revamp, especially since it handles TDS compliance for millions of deductors and taxpayers.
What’s new on the TRACES Portal?
These updates are often referred to as TRACES 2.0, as they simplify filing and reporting under both the old and new Income Tax Act.
1. Simpler login
The first noticeable change is in the login stage. Earlier, logging into TRACES required multiple credentials: User ID, Password, TAN (for deductors) or PAN (for taxpayers) and Captcha.
From April 2026 onwards, the User ID field has been removed and now you can log in using your TAN/PAN, along with your password and captcha. This means your TAN or PAN becomes your primary login ID.
This improvement reduces friction at the login and removes one of the most common issues users faced in forgetting their User ID.
2.The dual-interface system
The new TRACES portal does not replace the old one entirely. Instead, it runs a dual-track system to support the transition from the Income Tax Act, 1961 to the Income Tax Act, 2025.
The new interface, which is the default homepage, is meant for Tax Year 2026–27 onwards. It follows the updated section numbering under the 2025 Act and introduces new TDS forms such as Form 130 (replacing Form 16), Form 138 (quarterly TDS statement), Form 168 (replacing Form 26AS/Annual Information Statement).
The old interface continues to be used for FY 2025–26 and earlier, where you can:
- Access historical data
- Download Form 16/16A, consolidated TDS files, and conciliation reports
- View Form 26AS (up to AY 2026–27)
- File corrections for past TDS returns
How to access the old interface?
You’ll first have to log in to the TRACES portal. After logging in, click on the ‘Compliance under Income-Tax Act, 1961’ button on the homepage. Now, you’ll be redirected to the old TRACES interface.
All TDS work for FY 2025-26 and earlier must be done through the old interface, even if you’re logging in after April 1, 2026.
Which Act applies to your TDS transaction?
This depends on the date of payment or credit to the payee, not when TDS is deposited or filed. So if the:
- Payment/credit is on or before March 31, 2026 → Income Tax Act, 1961 applies
- Payment/credit is on or after April 1, 2026 → Income Tax Act, 2025 applies
For example, if salary for March 2026 is paid in March but TDS is deposited in April, the old Act still applies here.
What are the TDS Forms that changed under the new Act?
We’ve covered what the TDS Forms looks like under the new Act here. Here’s a quick reference for the major TDS form changes:
| TDS Forms under Old Act | TDS Forms under New Act | What they are |
|---|---|---|
| Form 15G/15H | Form 121 | Declaration for Nil TDS |
| Form 16 | Form 130 | Salary TDS Certificate |
| Form 24Q | Form 138 | Quarterly Salary Return |
| Form 26Q | Form 140 | Quarterly Non-Salary Return |
| AIS | Form 168 | Annual Information Statement |
We’ll keep updating this thread as more features go live on the TRACES portal.
Have questions? Drop them below!