JJ Correspondent
Jammu, feb 10: The Professional Cell of the J&K BJP Unit today commended Hon’ble Rajya Sabha MP CA. Sat Sharma ji for bringing to light the pressing issues faced by Tax Deducted at Source (TDS) deductors and deductees across India in the Upper House of Parliament. Convenor CA. Deepak Kapahi expressed optimism that this intervention will lead to swift resolution of the hardships encountered by taxpayers.
In his address, MP Sharma highlighted the amendments introduced by the Finance (No. 2) Act, 2024, to Section 200(3) of the Income-tax Act, 1961. Effective from April 1, 2025, these changes impose a six-year time limit for filing TDS correction statements, calculated from the end of the financial year in which the original statement was due. Previously, there was no such statutory limit, allowing corrections for genuine errors such as incorrect PAN details, challan mismatches, or clerical mistakes at any time.
For TDS statements pertaining to financial years prior to 2018-19 (i.e., FY 2017-18 and earlier), the six-year window has largely expired by March 31, 2025, barring corrections for these periods thereafter. This has resulted in significant challenges, including:
– Deductees not receiving proper TDS credit in Form 26AS, leading to inflated tax demands or delays/refusals in refunds.
– Deductors facing demands for short deductions, interest, and penalties under Sections 201 and 220, along with potential prosecution or litigation, despite having correctly deducted and deposited the tax.
