CBDT Extends Due Date for Issuance of TDS Certificates Amid E-filing Portal Glitches

The Central Board of Direct Taxes (CBDT) has announced an extension for the issuance of Tax Deducted at Source (TDS) certificates, specifically Form 16A, for the third quarter of the financial year 2025 (quarter ending December 31, 2025). The new deadline for deductors to provide these certificates is now March 31, 2026.

This extension comes in response to numerous representations highlighting significant technical glitches and delays experienced by deductors on the e-filing income tax portal.

Reason for the Extension

Deductors, including employers, banks, and various financial institutions, encountered difficulties in generating and issuing TDS certificates within the previously prescribed timelines, as stipulated under Rule 31 of the Income-tax Rules, 1962.

“Representations have been received by the Central Board of Direct Taxes regarding delay in issuance of TDS certificates for the quarter ending 31st December, 2025, due to technical glitches on the e-filing portal. On account of such glitches, deductors have faced difficulties in generating and issuing the certificates within the prescribed time.”

Acknowledging the genuine hardship faced by taxpayers, the CBDT, exercising its powers under Section 119 of the Income-tax Act, 1961, issued Circular No. 02/2026 on March 26, 2026, to provide this much-needed relief.

Implications for Deductors and Deductees

• Penalty Protection: Any TDS certificate issued by the extended date of March 31, 2026, will be considered as having been issued within the prescribed time, thereby shielding deductors from potential penalties for late issuance.
• Reduced Compliance Pressure: The extension offers immediate relief to corporate HR teams, SMEs, and financial institutions, allowing them additional time to ensure compliance without facing year-end pressure.
• Benefit to Taxpayers: This ensures that deductees receive accurate and system-validated TDS certificates before the commencement of the Income Tax Return (ITR) filing season for Assessment Year 2026-27, typically in June–July.

The move aims to facilitate smoother tax compliance and mitigate the challenges posed by technical issues on the e-filing platform.