The Central Board of Direct Taxes (CBDT), vide Circular No. 02/2026 dated March 25, 2026, has extended the due date for issuance of Tax Deducted at Source (TDS) certificates under Section 203 of the Income-tax Act, 1961 for the quarter ending 31st December 2025.
Section 203 of the Income-tax Act, 1961 read with Rule 31 of the Income-tax Rules, 1962 prescribes timelines for issuance of TDS certificates. However, representations were received from stakeholders highlighting delays in issuance of TDS certificates due to technical glitches in the e-filing portal. These issues reportedly caused difficulties for deductors in generating and issuing TDS certificates within the prescribed timeframe.
Taking into account the genuine hardships faced by deductors, the CBDT, in exercise of its powers under Section 119 of the Income-tax Act, has decided to extend the due date for issuance of TDS certificates to 31st March 2026 for the said quarter.
It has been clarified that TDS certificates issued within the extended timeline shall be deemed to have been issued within the prescribed due date under the Act.
This measure is expected to provide significant relief to taxpayers and deductors by ensuring compliance without penal consequences arising from system-related challenges.
The Circular can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/circular-2-2026-pdf
