Urgent: Final Deadline to Correct Old TDS Returns – 31st March 2026

If you are a deductor or a business owner, take note: the Income Tax Department has significantly shortened the window to fix errors in your past TDS returns. From April 1, 2026, a strict 2-year time limit will replace the old 6-year window.

What is the New Rule?

Under the new Income Tax Act, 2025, you can only file a correction statement within two years from the end of the financial year in which the original return was due.

To transition to this new system, the government has set a final "cutoff" date. March 31, 2026, is the last day to correct mistakes for several past years.

Which Years Are Affected?

You must complete all corrections for the following periods by March 31, 2026:

  • FY 2018-19: Quarter 4 only.
  • FY 2019-20 to FY 2022-23: All Quarters (Q1 to Q4).
  • FY 2023-24: Quarters 1 to 3.
Note: After this date, these years will be "frozen." You will not be able to fix PAN errors, challan mismatches, or deductee details.

Why You Must Act Now

Missing this deadline leads to permanent problems:

  • Loss of Credit: Deductees (employees/vendors) won't see the tax credit in their Form 26AS/AIS and may demand the money from you.
  • Unresolved Demands: Any "Short Deduction" or "Short Payment" notices on the TRACES portal will become permanent liabilities.
  • Heavy Penalties: Late fees and interest will continue to accumulate with no way to rectify the underlying error.

How to Fix Errors

  1. Login to TRACES: Check your "Default Summary" for any outstanding demands.
  2. Request Correction: Use the "Request for Correction" tab on the TRACES portal.
  3. Verify & Submit: Fix PAN mismatches or unconsumed challans and e-verify the request.