No TDS/TCS Correction beyond this Date: Income Tax Dept Reminds Final Date, ACT NOW !!!

The Income Tax Department has issued an urgent advisory on the upcoming deadline for filing the correction statements for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). As the implementation of the new tax regime approaches, the deductors and collectors must file the correction statements.

It has been notified that the Income-tax Act, 1961, is set to be repealed on April 1, 2026, and in its place, Section 536 of the Income-tax Act, 2025, is to be enforced.

As per the new legislation, it has been made clear by the department that the correction statements for the prior years will be enforced on a hard cut-off date of March 31, 2026.

The following periods are subject to the upcoming limitation:

• ​FY 2018-19: [Quarter 4 only].
• ​FY 2019-20 to 2022-23: [All quarters (Q1 to Q4).]
• ​FY 2023-24: [Quarters 1 to 3.]

Under Section 397(3)(f) of the Income tax Act, 2025, a deductor has the option to deliver a correction statement within two years from the end of the tax year in which the original statement was required to be made once the transition happens on April 1, 2026 the window would close for these years. These statements would be rejected if not completed by March 31, 2026.

The Income Tax Department Administrative Bench has advised all deductors and stakeholders to take necessary steps at the earliest as after the strike of midnight on March 31, 2026 the window for these specific financial years closes permanently.

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