The Income Tax Department has issued an advisory saying that you can only file TDS and TCS correction statements for Q4 of FY 2018-19 to Q3 of FY 2023-24, until March 31, 2026. So, if your bank, employer, property buyer, or anyone else deducted the wrong TDS or deposited the right TDS amount with incorrect details in the challan, you need to ask for a correction by March 31, 2026 . After that date, you will lose your TDS credit and will have to pay tax again. If you don’t settle your tax liability, you may end up receiving a tax notice.
What did the Income Tax Department say about the TDS correction statement? These are the details as per the official Income Tax Advisory:
The Income Tax Act 1961 stands repealed w.e.f 01.04.2026 by virtue of section 536 of Income Tax Act 2025. Further, as per Section 397(3)(f) of Income Tax Act, 2025, deductor/collector may deliver a correction statement in such form and verified in such manner as may be prescribed, to the prescribed authority within two years from the end of the tax year in which such statement is required to be delivered under the said clauses or under section 200 of the Income-tax Act, 1961. Consequent to the above, correction statements for FY 2018-19 (Qtr. 4), FY 2019-20 to 2022-23 (Qtr. 1 to Qtr. 4) and FY 2023-24 (Qtr. 1 to Qtr. 3) shall be accepted only up-to 31st March 2026. The same are time barred by limitation on 31.03.2026 and would not be accepted from 01.04.2026 onwards. Deductors /Collectors and other Stakeholders may kindly take note of the same and they are advised to take necessary steps to ensure all corrections for the above period, if any, are carried out in time as filing of the same for above period would be barred by limitation on 31.03.2026. Also read: Now even BJP CA cell asks for ITR deadline extension due to technical glitches, data mismatch on the ITR portal
What does this mean for taxpayers? Chartered Accountant Ashish Niraj , Partner, A S N & Company says that every deductor of TDS is required to furnish a TDS statement, and sometimes there
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