Government Slashes TDS/TCS Correction Timeline from 6 Years to 2 Years Immediate Action Required
The Income Tax Act, 2025 has introduced a crucial change in TDS/TCS compliance: the timeline for filing correction statements has been reduced from 6 years to 2 years. Businesses must file all pending TDS/TCS corrections for FY 2018-19 Q4 through FY 2023-24 Q3 by March 31, 2026. Failure to meet this deadline will lead to automatic recovery proceedings, penalties, and compliance complications. Learn about the key changes, understand the implications for your organization, and discover the immediate steps you need to take to ensure full compliance before the deadline expires.
Breaking Update: The Income Tax Act, 2025 has drastically reduced the time limit for filing TDS/TCS correction statements, catching many businesses off guard.
What's Changed
The government has tightened compliance timelines significantly:
- Old Rule: 6 years from the end of the relevant financial year
- New Rule: Only 2 years from the end of the year the original return was filed
Critical Deadline Alert
All correction statements for FY 2018-19 Q4 to FY 2023-24 Q3 must be filed by March 31, 2026.
Missing this deadline means:
- No further opportunity to file corrections
- Automatic recovery proceedings by the TDS department
- Potential penalties and interest charges
Immediate Action Required
- Review Now: Audit all TDS/TCS returns from FY 2018-19 Q4 onwards
- Identify Mismatches: Check for PAN errors, wrong sections, or calculation mistakes
- File Corrections: Don't wait until 2026—start filing immediately
- Set Internal Deadlines: Aim for completion by December 2025 to avoid last-minute rush
Key Takeaway
This isn't just about one deadline it's a signal that tax compliance windows are shrinking. Organizations need faster processes and better systems to stay compliant.
Bottom Line: The 6-year cushion is gone. If you have pending TDS/TCS corrections, treat this as a priority project starting today.
For detailed guidance on filing correction statements, consult your tax advisor or visit the Income Tax Department's e-filing portal.
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Krishna Gopal Varshney
An editor at apnokacaKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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Krishna Gopal Varshney
An editor at Myitronline
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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