CBDT Extends TDS Certificate Issuance Deadline

The Central Board of Direct Taxes (CBDT) has announced an extension for the issuance of Tax Deducted at Source (TDS) certificates for the third quarter of the Financial Year 2025-26, which ended on December 31, 2025. The new deadline for deductors to issue these crucial documents is now March 31, 2026.

This extension comes in response to numerous representations from taxpayers and professionals highlighting significant technical glitches and difficulties faced on the income tax e-filing portal. These issues reportedly hindered deductors, including employers and banks, from generating and issuing TDS certificates within the originally prescribed timelines.

Relief for Deductors and Taxpayers

The CBDT's decision, communicated via Circular No. 2/2026 dated March 26, 2026, aims to alleviate the genuine hardship experienced by those responsible for tax deductions. Importantly, any TDS certificate issued within this extended period will be considered as having been issued within the prescribed time, thereby protecting deductors from potential penalties linked to delayed issuance.

Section 203 of the Income-tax Act, 1961, mandates the issuance of TDS certificates, with the time limits for their issuance outlined under Rule 31 of the Income-tax Rules, 1962. This extension ensures compliance despite the portal's technical difficulties, allowing both deductors to fulfill their obligations smoothly and dedutees to access the necessary information for their income tax returns.