CBDT Extends TDS Certificate Deadline for Dec 2025 Quarter to March 31

CBDT Extends TDS Certificate Deadline for Dec 2025 Quarter to March 31

New Delhi, March 28, 2026: In a significant relief to taxpayers and deductors, the Central Board of Direct Taxes (CBDT) has extended the deadline for issuance of Tax Deducted at Source (TDS) certificates for the third quarter (October–December) of the financial year 2025–26.

As per Circular No. 2/2026 dated March 25, 2026, the due date for issuing TDS certificates under Section 203 of the Income-tax Act, 1961 has been extended from February 15, 2026 to March 31, 2026.

Relief Due to Technical Glitches

The extension comes after multiple representations from stakeholders highlighting persistent technical issues on the income tax e-filing and TRACES portals. These glitches reportedly hampered the generation and downloading of TDS certificates, making it difficult for deductors to meet the original deadline.

Taking note of the “genuine hardship,” CBDT exercised its powers under Section 119 of the Act to relax the compliance timeline. The Board clarified that any TDS certificate issued within the extended deadline will be treated as having been issued within the prescribed time.

No Penalty for Delayed Issuance

The move protects deductors from penalties under Section 272A(2)(g), which imposes a late fee of ₹100 per day for delay in issuing TDS certificates. With the revised deadline, businesses, employers, and accounts departments now have additional time to complete compliance without financial repercussions.

Impact on Taxpayers

For employees and other taxpayers awaiting Form 16 or Form 16A for the December 2025 quarter, the extension means a delay in receiving these documents. However, experts say the additional time will help ensure greater accuracy in tax reporting.

Taxpayers are advised to verify their tax credits in Form 26AS and the Annual Information Statement (AIS) after March 31 to ensure proper reflection of deducted taxes.

Focus on Accuracy and Compliance

The extension is expected to ease compliance pressure and allow deductors to reconcile data more effectively, especially after system-related disruptions. It also underscores the government’s intent to provide flexibility in cases where technical issues affect statutory timelines.

With the new deadline in place, stakeholders are encouraged to complete the issuance process promptly and avoid last-minute rush before March-end.