Topics In Demand
Notification
New

No notification found.

MoF: Submission requesting for extension of time limit for filing TDS correction statements by at least 3 months
MoF: Submission requesting for extension of time limit for filing TDS correction statements by at least 3 months

April 23, 2025

24

0

We have made a submission to Ministry of Finance requesting them to extend the time limit for filing TDS correction statements by at least 3 months. 

As you may be aware, the Finance Act (No. 2) of 2024 introduced an amendment in S. 200(3) of the Income Tax Act, 1961 (IT Act) which
stipulates that TDS correction statement cannot be filed after expiry of 6 years from the end of Financial Year (FY) in which the statement under S.200(3) was required to be delivered. This amendment represents a fundamental shift in TDS administration, as previously no time limit existed for filing TDS correction statements for prior years. With the introduction of the amendment, the due date for filing correction statements for FY
2007-08 to 2018-19 (till third quarter) was March 31, 2025.

After the introduction of the aforesaid amendment, lot of assessees have started taking stock of historical discrepancies where correction is warranted based on feedback received from vendors. Further, since the due date for making the said corrections was 31st March 2025, deductors were trying to file correction statement within the said due date. However, owing to technical glitch in the system during later part of March 2025, the deductors were not able to file all such correction statements within the stipulated timeline of 31st March 2025. Failure to file correction statements within the stipulated period could result in undue tax demands and recovery notices for tax and interest.

Even today, a significant number of returns remain pending correction due to the inherently time-consuming and technically complex nature of the correction process and on account of unavoidable system glitches faced by the deductors while filing the correction statements within the stipulated timeline. We have emphasized the fact that the industry is committed to comply with this requirement and has been working diligently to meet the stipulated deadline. The extension in time limit would provide taxpayers with a reasonable opportunity to comply with their obligations while maintaining the integrity of the tax administration system.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Tejasvi

© Copyright nasscom. All Rights Reserved.