Starting from 1st April 2025, a significant change is being introduced regarding the filing of Correction Statements. Under the current provisions, taxpayers have the flexibility to file correction statements for any period, as many times as needed, with practically no restrictions on the timeframe. However, this will soon change with the new rules limiting the filing of correction statements to the previous six years only.
What Does the New Rule Mean?
The new provision proposes that no correction statement can be filed after six years from the completion of the relevant financial year. This means that for any financial year, corrections can only be made within a six-year window from the end of that financial year.
For example, during the period from Apr ‘25 to Mar ’26. Correction Statements will be allowed only for financial years 2019-20 onwards.
Impact of the New Time Limit
This new restriction is designed to streamline the process of filing Correction Statements and to encourage taxpayers to be better compliant. By imposing a six-year limit, the government aims to reduce the number of outdated corrections and to ensure that the tax system remains efficient and up-to-date.
Taxpayers and professionals in the eco-system should be aware of this change and review their past TDS / TCS Return for any corrections that need to be done keeping in view of this new amendment. Please note that failing to do so could result in unresolved discrepancies and compliance issues.