⚠️Urgent Action Required: Deadline for TDS/TCS Correction Statements

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Income Tax Act 1961 Repealed: Limited Time to Amend Old Filings (Prior to FY 2023-24 Q4).

This is a critical advisory regarding the **limitation period** for filing **TDS/TCS correction statements** related to older financial years. Due to the impending repeal of the Income Tax Act, 1961, and its replacement by the Income Tax Act, 2025, several past tax correction windows are closing permanently on **March 31, 2026**.

The Statutory Basis for the Deadline

The deadline is necessitated by the introduction of the new tax legislation:

  • **Repeal of Old Act:** The Income Tax Act 1961 stands repealed w.e.f 01.04.2026 by virtue of section 536 of Income Tax Act 2025.
  • **New Limitation Period:** As per section 397(3)(f) of Income Tax Act, 2025, the deducutor/collector may deliver a correction statement to the prescribed authority within two years from the end of the tax year in which such statement is required to be delivered under the said clauses or under section 200 of the Income-tax Act, 1961.

The Specific Quarters Affected by Limitation

Consequent to the new limitation period, the ability to file correction statements for the following historical periods will cease:

Correction Statements Deadline: 31st March 2026

  • **FY 2018-19:** Quarter 4 (Qtr. 4)
  • **FY 2019-20 to 2022-23:** Quarter 1 to Quarter 4 (Qtr. 1 to Qtr. 4)
  • **FY 2023-24:** Quarter 1 to Quarter 3 (Qtr. 1 to Qtr. 3)

The correction statements for this entire period shall be accepted only up-to 31st March 2026. The same are **time barred by limitation on 31.03.2026** and would **not be accepted from 01.04.2026 onwards**.

Professional Insight: Key Takeaway 💡

This is an unmissable, hard deadline set by new legislation. Deductors/Collectors and other Stakeholders are urgently advised to ensure **all corrections for the above period are carried out in time** as filing of the same for the period prior to **FY 2023-24 Q4** will be barred by limitation on 31.03.2026.

Source: Advisory based on Section 536 of Income Tax Act 2025 and Section 397(3)(f) of Income Tax Act, 2025.

Statutory Reference: Income Tax Act 1961, Section 200 (Repealed w.e.f 01.04.2026); Income Tax Act, 2025 (Section 536 and Section 397(3)(f)).

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