Deadline to claim pending TDS credit for FY 2007-08 till Q3 FY 2017-18 is March 31, 2025; do this now to file a TDS correction statement

March 31, 2025 is the deadline for filing correction statements of tax deducted at source (TDS) returns for FY 2007-08 to Q3 of FY 2018-19. This deadline is important for those individual taxpayers who are facing the issue of TDS mismatch between actual deduction and what is shown in Form 26AS or Annual Information Statement (AIS). One of the common reasons for such a mismatch in TDS reports could be because the TDS deducting entity like banks, employers, etc reported the wrong amount to the tax department who then based on this report prepared your Form 26AS an AIS. To solve such problems , complaining to the tax department won’t help as much as requesting the TDS deducting entity to file a TDS return correction statement.

Why March 31, 2025 is the deadline to file TDS correction statements for FY 2007-08 till Q3 of FY 2018-19?

According to an email dated March 21, 2025 by Protean eGov Technologies, the entity who manages the Tax Information Network (TIN) portal, here are the details:

• As per amendment in section 200(3) of the Income-tax Act vide FINANCE (No.2) ACT,2024, no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) is required to be delivered.
• In view of the above, correction statements pertaining to Financial Year 2007-08 to 2018-19 shall be accepted only up-to March 31, 2025. Deductors/Collectors and other Stakeholders may kindly take note.
• No TDS/TCS correction statement will be allowed after the expiry of six years from the end of financial year in which the original statement was filed.
• For quarter 1, 2 and 3, corrections can be made within six subsequent financial years. For Q4, corrections can be filed within six subsequent financial years plus one additional year as the filing due date for Q4 fall in subsequent financial year.
• This change is applicable from April 1, 2025 and to forms 24Q, 26Q, 27Q and 27EQ.

Why should you request the TDS deductor to file a TDS correction statement?

The primary purpose of filing a correct TDS return is to record the amount of the transaction. If the TDS amount itself is wrongly reported then the tax department gets the wrong impression about the transaction’s value.

Filing a correction request for an incorrect report of TDS can help in eliminating the tax demand notice. The incidence of tax demand notice occurs when you claim credit for TDS in your ITR but either its report is missing in the AIS/Form 26AS or its amount mentioned is lower than what you claimed in the ITR.

“For Employees and other individuals whose tax have been deducted by their Employers or banks, discrepancies arising in the TDS statements can lead to incorrect reporting of tax deductions and eventually mismatches with the actual tax payments,” says Sanjoli Maheshwari, Executive Director, Nangia Andersen India.

When the TDS correction statement is filed by the TDS deducting entity to fix any error, it can also result in tax refunds.

“With the correction statement filed, the Taxpayers can rectify the said errors, claim correct TDS amounts, compute correct tax liability and eligible refunds (if any), by considering the option of filing revised return, updated return (as per the prescribed conditions and timelines), or claiming the same during the course of scrutiny proceedings (if the case gets selected for scrutiny),” says Maheshwari.

Publication – The Economic Times

By Sanjoli Maheshwari