Important Update on TDS/TCS Correction Statements: Deadline Approaching March 31, 2026

 

Impending Deadline: Correction statements for TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) from specific past periods must be filed by March 31, 2026. This includes FY 2018-19 (Q4 only), FY 2019-20 to 2022-23 (all quarters), and FY 2023-24 (Q1 to Q3). From April 1, 2026, these will be time-barred and no longer accepted.

Reason for Change: This stems from the repeal of the Income Tax Act, 1961, effective April 1, 2026, under Section 536 of the new Income Tax Act, 2025. The new law reduces the correction window to two years from the end of the relevant tax year.

Implications: Failing to correct by the deadline could lead to penalties, interest, disallowances, and disputes affecting deductees like employees or vendors. It may also hinder smooth tax credit and reconciliation.

Action Advised: Deductors, collectors, and stakeholders should review records on the TRACES portal and file corrections promptly to ensure compliance.

Why This Matters

This change could help avoid penalties and ensure smooth tax credits, but it requires prompt action to review and correct old statements. Check official portals like TRACES for your records.

What to Do Next

Log into the e-filing or TRACES portal, identify any errors in past TDS/TCS filings, and submit corrections before the deadline. If unsure, consult a tax advisor to prevent issues like interest charges or notices.

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Disclaimer: - The information provided in this blog is for educational and informational purposes only and is based on the publicly available details. It does not constitute legal, tax, or professional advice. Readers are encouraged to consult qualified professionals for advice tailored to their specific circumstances. The views expressed are derived from the ruling and do not reflect any endorsement or opinion by the blog author or website.