The Income Tax Department has released a new version of the File Validation Utility (FVU) to validate TDS / TCS returns before submission. This update introduces several enhancements and changes, effective from 1st April, 2025, aimed at improving compliance and accuracy in TDS / TCS reporting. These are summarized as under:
Restrictions in Correction Statement
- Correction Statements for TDS / TCS can only be filed for a specified number of financial years based on the financial year where the Regular Statement was due to be filed.
- For Q1, Q2 & Q3 Corrections Statements can be filed within six financial years. For Q4, corrections can be filed within seven financial years.
- This change is applicable from 1st April, 2025 and will apply to all forms – 24Q, 26Q, 27Q & 27EQ.
- Illustrations:
- TDS Return for FY: 2019-20 (Q2) – Corrections can be filed till 31st March, 2026
- TDS Return for FY: 2018-19 (Q4) – Corrections can be filed till 31st March, 2026
- TDS Returns before FY: 2018-19 (Q1-Q3) – Corrections cannot be filed
- TDS Returns before FY: 2017-18 (Q1-Q3) – Corrections cannot be filed
Introduction of Section 194T
- New Code 194T has been introduced – Payment of Salary, Remuneration, Commission, Bonus or Interest to a Partner of a Partnership Firm / LLP
- Applicable ‘Remarks’ values are ‘Y’ for threshold and ‘C’ for higher rate
- This applies for Statements pertaining to FY: 2025-26, Q1 onwards
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TDSMAN has been fully updated with newly released File Validation Utilities.
To update TDSMAN – Click on Utilities > Update Software
Upload updated TDS & TCS rate chart for the current FY 2025-26 as per Finance Act 2025 approved by President.
The new TDS / TCS Rate Chart FY: 2025-26 (AY: 2026-27) has been posted.