ITR Filing: New TDS/TCS statement correction deadline; here's what you should do to avoid tax notice

The Income Tax Return (ITR) filing deadline is approaching. Only six days left to file the tax return for the Financial Year 2025. Meanwhile, the Income Tax (I-T) Department has issued an advisory for the new Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) statement correction deadline. 

According to the advisory, the correction statements for TDS and TCS can only be filed for Q4 of FY 2018-19 up to Q3 of FY 2023-24 until March 31, 2026. 

Earlier, the 6-year duration permitted for the amendments. This deadline has now been reduced to four years.

What does this new deadline mean to you?

This implies that you have until March 31, 2026, to request a rectification if your employer or any other deductor has deposited the correct TDS but reported inaccurate information in the challan. The TDS credit will expire after this date, requiring you to make another tax payment. The department may send you a tax notice if you don't pay the debt.

What does the I-T Department statement say?

• The Income Tax Act 1961 stands repealed w.e.f 01.04.2026 by virtue of section 536 of the Income Tax Act 2025.
• Additionally, as per Section 397(3)(f) of Income Tax Act, 2025, deductor/collector may provide a correction statement in such form and confirmed 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 needed to be delivered under the stated clauses or u/s 200 of the Income-tax Act, 1961.
• Resulting from 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) will 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 consider the same, and they must take critical steps to ensure all corrections for the above period, if any, are performed in time, since filing of the same for the above period is barred by limitation on 31.03.2026.

What you should do to avoid tax notice
Taxpayers should fix their TDS and TCS statements before the deadline to avoid any legal notice.

TDS/TCS correction procedure
According to I-T Department official website, here is step-by-step guide to correct your TDS and TCS statements.

Step – I
To prepare correction statement, first download Consolidated TDS/TCS file after login at TRACES login at www.tdscpc.gov.in

Step – II
Import consolidated TDS/TCS file and Prepare the Correction statement as per the applicable Category;

Step – III
Furnish only those records which require Corrections;

Step – IV
Fill provisional receipt number of regular and previous correction statements

Step – V
After preparation of correction statement, the same is to be validated through File Validation Utility (FVU).

Step – VI
Furnish validated (.fvu) correction statement with a TIN-FC or directly through NSDL web-site (www.tin-nsdl.com).