Important Update for Deductors: Reduced Time Limit for Filing Correction Statements
1. Key Change under the New Income Tax Provisions
• The time limit for filing correction statements (TDS/TCS) has been reduced to 2 years.
• Earlier, deductors had a longer window to correct errors in filed TDS/TCS returns.
• Now, under the new provisions, corrections must be filed within a much shorter timeframe from the date of filing the original statement.
• Previously 6 years were allowed, now it is only 2 years
2. Why This Change Matters for Deductors
• Timely compliance is critical to avoid interest, penalties, and disallowances.
• Correct PAN, challan, and deduction details ensure smooth credit to deductees.
• Errors not rectified in time can directly impact employees/vendors and create disputes.
3. Key Takeaway
➢ The reduced time limit is a move towards faster reconciliation and real-time compliance.
➢ Deductors must adopt a proactive approach in filing accurate statements and timely corrections
➢ Avoid penalties and protect your deductees’ interests.