New Delhi: The Central Board of Direct Taxes (CBDT) has extended the deadline for issuing TDS certificates for the quarter ending December 31, 2025. The new deadline has been set as March 31, 2026, following technical glitches on the income tax e-filing portal.
The extension comes after multiple complaints from deductors who faced delays in generating and issuing certificates on time.
Reason Behind the Extension
In its Circular No. 2/2026 dated March 26, 2026, CBDT acknowledged that technical issues on the e-filing portal created difficulties for deductors.
These glitches prevented timely issuance of TDS certificates within the prescribed deadline. The board noted that the situation caused genuine hardship, prompting the decision to grant additional time.
What the Circular Says?
CBDT clarified that TDS certificates issued within the extended timeline will be treated as valid and issued within the prescribed period.
The extension applies specifically to certificates under Section 203 of the Income-tax Act, read with Rule 31 of the Income-tax Rules, for the third quarter of FY26.
Importance of TDS Certificates
TDS certificates are essential documents issued by deductors such as employers, banks, or institutions.
They contain key details including the deductor’s name, TAN, amount deducted, and applicable tax rate. These certificates help taxpayers verify tax deductions and claim credit while filing their income tax returns.
Expert View on the Move
Chartered Accountant Ashish Niraj, Partner at A S N & Company, said that TDS certificates play a crucial role in helping taxpayers understand deductions made from their income.
He explained that these documents allow individuals, including pensioners and fixed deposit holders, to check whether the correct amount of tax has been deducted and reported.
Impact on Taxpayers and Deductors
Normally, TDS certificates such as Form 16A must be issued within 15 days of filing quarterly returns. However, due to portal issues, many deductors could not meet this timeline for Q3 FY26.
The extension will give deductors more time to comply without facing penalties. It will also ensure taxpayers receive accurate information needed to assess additional tax liability, if any.
The extension is expected to ease compliance pressure and improve accuracy in tax reporting. It ensures smoother issuance of certificates while supporting taxpayers in filing correct returns.
