Share your story and shine at JK Monitor!🌟 Welcome to JK Monitor, where every story matters and every achievement is celebrated! We invite you to share the remarkable journey of your life and showcase your accomplishments to the world. Join our exclusive interviews that honor exceptional individuals just like you. JAMMU: The Professional Cell of the J&K BJP Unit today commended Hon'ble Rajya Sabha MP CA. Sat Sharma ji for bringing to light the pressing issues faced by Tax Deducted at Source (TDS) deductors and deductees across India in the Upper House of Parliament. Convenor CA. Deepak Kapahi expressed optimism that this intervention will lead to swift resolution of the hardships encountered by taxpayers.
In his address, MP Sharma highlighted the amendments introduced by the Finance (No. 2) Act, 2024, to Section 200(3) of the Income-tax Act, 1961. Effective from April 1, 2025, these changes impose a six-year time limit for filing TDS correction statements, calculated from the end of the financial year in which the original statement was due. Previously, there was no such statutory limit, allowing corrections for genuine errors such as incorrect PAN details, challan mismatches, or clerical mistakes at any time.
For TDS statements pertaining to financial years prior to 2018–19 (i.e., FY 2017–18 and earlier), the six-year window has largely expired by March 31, 2025, barring corrections for these periods thereafter. This has resulted in significant challenges, including:
- Deductees not receiving proper TDS credit in Form 26AS, leading to inflated tax demands or delays/refusals in refunds.
- Deductors facing demands for short deductions, interest, and penalties under Sections 201 and 220, along with potential prosecution or litigation, despite having correctly deducted and deposited the tax.
These mismatches persist even when taxes were duly paid, undermining the government's emphasis on ease of doing business and taxpayer-friendly policies. MP Sharma advocated for a one-time relief, a condonation window, or guidelines under Section 119 of the Income-tax Act, 1961, which empowers the Central Board of Direct Taxes (CBDT) to relax provisions in cases of genuine hardship. While no specific relief has been announced yet for pre-FY 2018–19 periods, similar condonations have been granted in the past through CBDT circulars for TDS-related matters.
CA. Deepak Kapahi, Convenor of the Professional Cell, stated, "We wholeheartedly appreciate the efforts of Hon'ble MP CA. Sat Pal Sharma in championing this critical issue in Rajya Sabha. The restrictions on TDS corrections have caused undue burdens on honest taxpayers, and we are hopeful that the government will address these difficulties promptly to ensure fairness and compliance ease."
The matter was discussed and appreciated by all present during a meeting of the Professional Cell, including CA. Amit Gupta (Co-Convenor), Adv. Kuldip Sudan, Dr. Virender Singh Sambyal, Neeraj Dewan, CA. Jitesh Arora, CA. Ritesh Gupta, and CA. Satish Kumar Gupta.
