F I G
figment global solutions pvt. ltd.
E N T

Global Solutions Pvt. Ltd.

tds correction

admin | Posted On | January 22, 2025

New Time Limit for Filing TCS/TDS Correction Statements Introduced

Effective from April 1, 2025, significant changes will be made to the filing of correction statements related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). The government has proposed an amendment to Sections 200 and 206C of the Income-tax Act. Introducing a time limit for furnishing correction statements.

Current Scenario

At present, while there are stipulated deadlines for filing TDS and TCS statements, there is no time limit for filing correction statements. This provision allows taxpayers to revise these statements multiple times, even several years after the initial filing. Although this flexibility ensures accuracy, it has led to certain challenges, including:

  • Potential misuse by taxpayers.
  • Delayed resolution of issues for deductees and collectees.

Proposed Amendment

To address these challenges, the following changes are being introduced:

  1. Time Limit for Correction Statements:
    1. Correction statements for TDS and TCS can now be filed only within six years from the end of the financial year in which the original statement was filed.
  2. Deadline for Past Returns:
    1. TDS and TCS returns filed for FY 2018-19 and earlier years can only be revised or rectified until March 31, 2025.
    1. Thus for older returns, taxpayers must review and rectify discrepancies before the deadline of March 31, 2025.

Conclusion

The introduction of a time limit for filing TCS/TDS correction statements is a welcome step toward enhancing transparency and efficiency in tax compliance. Taxpayers must stay vigilant about their filings and proactively address any discrepancies within the stipulated time frame to avoid complications.

For further updates on tax law amendments, stay tuned!