The Central Board of Direct Taxes (CBDT) has revised the permissible period for filing TDS / TCS correction statements. With effect from 1st April 2026, correction statements will be accepted only for the previous two years. The earlier facility of filing corrections for the previous six years will no longer be available.
Applicability of the Revised Time Limit
Correction statements for the following periods will be accepted only up to 31st March 2026:
- Q4 of FY 2018-19
- Q1 to Q4 of FYs 2019-20 to 2022-23
- Q1 to Q3 of FY 2023-24
From 1st April 2026 onwards, correction statements for the above periods will not be accepted.
For example, during the period from April ’26 to March ’27, Correction Statement will be allowed only from FY: 2023-24 (Q4) onwards. For the subsequent year (April ’27 to March ‘28), it would be from FY: 2024-25 (Q4).
The two-year filing limit will apply to all correction statements submitted on or after 1st April 2026.
Compliance Framework Effective from 1st April 2026
The permitted time limit to file TDS/TCS correction statements will be restricted to two years from the end of the relevant financial year. There will be no scope for rectification after expiry of this period.
The reduction in the correction window requires deductors, collectors, and other stakeholders to complete all pending corrections within the applicable timelines.
Consequences Under the Revised Limit
Failure to file required corrections within the two-year period may result in:
- Unresolved mismatches leading to deductee credit issues
- Penalties between ₹10,000 and ₹1,00,000 depending on the nature of default
- Increased exposure during audits due to uncorrected statements
Correction statements are required to ensure accurate reporting and to avoid disallowances or disputes arising from outdated or unmatched records.