31ST Mar time limit for revising TDS return:

 

1. Budget 2024 amendment:

The July Budget 2024 had introduced a six-year time limit for revising TDS returns. Consequently, amendment was made in Sec 200(3) of the Income Tax Act for the purpose.

Previously, there was no time limit for filing TDS correction statements, allowing endless revisions.

2. Cut off for FY 2007-08 to 2018-19:

As a result, for financial years 2007-08 to 2018-19, the last date to make corrections is March 31, 2025. After this date, deductors will no longer be able to rectify errors, meaning taxpayers will lose their right to claim TDS credits for those years.

3. Permanent Loss of TDS Credit:

If the deductor filed the TDS return incorrectly (e.g., with the wrong PAN or incorrect details), the TDS credit won’t appear in the taxpayer’s Form 26AS or AIS. Without this credit, taxpayers cannot claim the deducted tax in their Income Tax Return (ITR). If corrections are not made before the deadline, taxpayers will permanently lose the TDS amount deducted on their behalf.

4. Double taxation:

If a taxpayer cannot claim TDS credit, they will have to pay additional tax while filing their ITR. This could lead to double taxation—where tax is deducted but not credited to the taxpayer’s account.