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TDS Challan for FY 2025–26 Can Be Adjusted to TY 2026–27: I-T Dept
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Income Tax Department Circulartax

TDS Challan for FY 2025–26 Can Be Adjusted to TY 2026–27: I-T Dept

October 20, 2026

The Income Tax Department clarifies that TDS challans deposited for FY 2025–26 can be adjusted against the tax liability for TY 2026–27. A correction facility for this adjustment is under development and expected shortly.

The Income Tax Department has clarified that taxpayers may utilize TDS challans deposited during the financial year 2025–26 toward the tax credit for the assessment year 2026–27. This adjustment ensures that tax credits are not lost due to timing mismatches between deposit and assessment cycles.

According to the department, a formal correction facility to enable such adjustments in Form 26AS and the e-filing portal is currently under development. The facility is expected to be rolled out in the near term to allow taxpayers to reconcile their tax payments accurately.

Practitioners should advise clients to retain proof of deposit and monitor the I-T portal for the release of the correction mechanism. This clarification benefits assessees with delayed filings or incorrect allocation of TDS payments across financial and assessment years.

Practice Areas:tax

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