CBDT Extends TDS Certificate Deadline for Q3 FY 2024-25

The Central Board of Direct Taxes (CBDT) has announced an extension for the issuance of TDS (Tax Deducted at Source) certificates for the third quarter of the financial year 2024-25. This crucial deadline, which was previously in effect, has been pushed back due to persistent technical glitches encountered on the income tax e-filing portal.

Deductors, including employers and banks, now have until March 31, 2026, to provide these essential documents for the quarter ending December 2025. The decision, outlined in Circular No. 2/2026 dated March 26, 2026, aims to mitigate the genuine hardships faced by those responsible for deducting tax at source.

Reasons Behind the Extension

The primary reason for this extension is the technical issues plaguing the e-filing income tax portal. These glitches have hindered deductors from timely compliance with the requirement to issue TDS certificates, specifically Form 16A, which is vital for taxpayers.

“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.”

The CBDT acknowledges that such delays create difficulties for both deductors, who face potential penalties for late issuance, and dedutees, who rely on these certificates for accurate income tax return filing.

Importance of TDS Certificates for Taxpayers

TDS certificates are fundamental documents for taxpayers as they provide details of the tax deducted from their income by various entities. These certificates typically contain information such as the name and TAN of the deductor, the amount deducted, and the rate at which the tax was withheld.

• Verifying TDS: Taxpayers use these certificates to cross-verify the TDS amounts deducted against their income, ensuring accuracy.
• Income Tax Return Filing: Accurate TDS details are essential for correctly filing income tax returns and claiming appropriate tax credits.
• Avoiding Penalties: Having the correct TDS information helps taxpayers determine if any additional self-assessment tax is due, thereby avoiding future penalties and notices.

The extension is expected to provide much-needed relief to deductors, allowing them sufficient time to issue certificates without the worry of fines, and simultaneously assist dedutees in obtaining the necessary information for their tax compliances.