The Income Tax Department clarifies that TDS challans deposited for FY 2025-26 may be reflected in the TY 2026-27 statements. A correction facility is under development and will be available shortly.
TDS Challan for FY 2025-26 Can Be Used in TY 2026-27: Income Tax Dept
The Income Tax Department has clarified that Tax Deducted at Source (TDS) challans deposited for the financial year 2025-26 may be processed and reflected in the tax credit statements for the subsequent assessment year 2026-27. This interim measure is intended to prevent duplication and ensure accurate credit reflection in Form 26AS and other compliance records.
The department acknowledged potential mismatches due to systemic alignment and confirmed that a dedicated correction facility is currently under development. Taxpayers are advised that this tool will be rolled out shortly to rectify any discrepancies in TDS credit attribution between financial and assessment years.
Practitioners should monitor client tax credit statements closely and await the formal release of the correction utility. Until then, reliance on deposited challan details—verified through TRACES and bank records—remains critical during assessments or audits, especially where timing mismatches may arise between FY and TY allocations.
