September 9, 2025

Big alert for taxpayers and deductors! The Income Tax Department just dropped a major advisory saying that you can ONLY file corrections for TDS and TCS statements from the last quarter of FY 2018-19 up to the third quarter of FY 2023-24 until March 31, 2026. After this, no corrections will be accepted and you could lose your hard-earned TDS credit. What does this mean? If your bank, employer, property buyer, or anyone else deducted the wrong amount of TDS or put wrong details while paying the TDS, now is the time to fix it! Ask for a correction before March 31, 2026, otherwise you might have to pay tax again and even get a tax notice. Here’s the official scoop from the Income Tax Advisory: The Income Tax Act 1961 will be repealed from April 1, 2026, as per the new Income Tax Act 2025. According to Section 397(3)(f) of this new law, anyone who deducts or collects tax can submit correction statements only within two years from the end of the tax year concerned. That means correction statements for FY 2018-19 Q4, FY 2019-20 to 2022-23 (all quarters), and FY 2023-24 up to Q3 will be accepted only until March 31, 2026. From April 1, 2026, the window closes for these corrections! Expert CA Ashish Niraj explains, "Every deductor of TDS is required to furnish a TDS statement, and sometimes errors arise which need to be corrected by way of a correction statement." He adds that the older Section 200 of the Income Tax Act 1961 got replaced by the newer Section 397(3)(f) of the Income Tax Act 2025. CA Ashish Karundia shares another important update: "From April 1, 2026, the time allowed for revising TDS and TCS statements has been cut down from six years to just two years!" Earlier, the longer period caused delays in resolving tax credit mismatches. Now, with this tighter timeline, errors in TDS/TCS filings must be fixed quickly, clearing up confusion and speeding up processes. Karundia warns, "If discrepancies are not resolved in time, the tax department’s Central Processing Centre may send demand notices for unpaid or wrongly deposited TDS/TCS." He also points out that Income Tax Returns like ITR-U can still be filed within four years, but for TDS corrections, the clock runs out much sooner. The big takeaway? Both those who deduct tax and those who have tax deducted should double-check their reports and correct any mistakes by March 31, 2026. Otherwise, you risk delayed refunds, missing tax credits, or even surprise tax bills! To sum up, if you received any tax demands related to transactions till December 2023, don’t wait! Review and fix them before the March 31, 2026 deadline to keep your tax matters neat and clean. The Income Tax Department is serious about this cut-off, so act fast and save yourself from a tax headache later!

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Tags: Income tax department, Tds correction, Tcs correction, Tax deadline, Tax notice, Income tax act 2025,