A significant compliance change is on the horizon. Under the upcoming Income-tax Act, 2025, the time limit for correcting TDS returns will be reduced to 2 years from the end of the relevant financial year, effective 1 April 2026.

To facilitate this transition, taxpayers have a final opportunity until 31 March 2026 to correct errors in older TDS filings, including those from FY 2018-19 onwards.

If PAN errors or clerical mistakes are not rectified before this deadline, they may no longer be correctable, which could impact tax credit for deductees.

Deductors should review past filings and make necessary corrections through the TRACES portal.

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