Important Update on TDS Correction Returns for Taxpayers: Act Now Before the Deadline
TDS Correction Returns Deadlines: Everything You Need to Know
There is an important update on the submission of correction statements for TDS correction returns under the amendment implemented in section 200(3) of the Income-tax Act through the Finance Act (No. 2) 2024. Here’s everything you need to know to ensure compliance with the new regulations.
Key Update:
The amendment specifies that correction statements under Section 200(3) of the Income-tax Act cannot be submitted after six years from the end of the financial year in which the initial statement was required to be provided.
Which means any correction needs to be filed on or before 6 years from the year of regular return filing.
E.g For Return filed in FY 2023-24, any corrections can be updated only until FY 2028-29.
IN continuation to the above amendment, the department has stated that;
- Correction statements for Financial Years 2007-08 to 2018-19 have to be updated on or before 31st March 2025.
Summarized key points
Key Point | Details |
Amendment Overview | New rule under Section 200(3) of the Income Tax Act. |
6-Year Limit | Corrections are only allowed within six years of the relevant year. |
Deadline for Old Corrections | Corrections for FY 2007-08 to 2018-19 close on 31st March 2025. |
Take Note | Deductors, Collectors, and other stakeholders. |
Action Required | Check previous filings, make changes, and submit by the deadline. |
What to do next | 1. Review your old filings for FY 2007-08 to 2018-19. 2. Submit corrections before 31st March 2025. 3. There’s not much time, so don’t wait. |
Why Does This Matter?
If you find any mistakes in your TDS statements for the above-stated financial years, you must correct them by the deadline. Failure to do so will result in losing the opportunity to make corrections, ultimately leading to penalties or disputes later on.
Who Should Take Note?
- Deductors and Collectors: Ensure that all pending corrections are correctly addressed.
- Stakeholders: Be aware of the deadline to avoid noncompliance issues.
Next Steps:
- Check your TDS statements for the specified financial years.
- Identify any differences that need to be corrected.
- Submit correction statements well before the deadline of 31st March 2025.
Final Reminder:
Taxpayers can make corrections for previous financial years during this one-time opportunity. Don’t wait until the last minute; take action immediately to ensure compliance and avoid issues.
