The Central Board of Direct Taxes (CBDT) issued Circular No. 2/2026 to address practical difficulties faced by deductors due to technical issues on the income tax portal.
👉 The major issue:
- Difficulties in generating and downloading TDS certificates (Form 16A)
- Technical glitches in TRACES / Income Tax portal
Click here to download Circular
📅 What is the Key Relief Given?
As per the latest update:
👉 Due date for issuance of TDS Certificates (Q3 – FY 2025-26) has been extended up to 31 March 2026
📊 Scope of the Circular
The extension applies to:
- TDS certificates (Form 16A)
- Quarter 3 (Oct–Dec 2025)
- All deductors required to issue certificates under Section 203
⚠️ Reason for Extension
CBDT has clearly indicated that:
- There were technical glitches on e-filing / TRACES portal
- Deductors were unable to generate certificates timely
- Extension ensures compliance without penalty
👉 This is a relief-oriented circular under section 119 (CBDT powers)
🧾 Practical Impact for Deductors
✅ Benefits
- Extra time to download Form 16A from TRACES
- Avoid late fee / penalty risk
- Better reconciliation with:
- Form 26Q / 27Q
- Form 26AS / AIS
⚠️ Important Compliance Points
Even after extension:
- TDS must be correctly filed in return (26Q etc.)
- PAN validation should be proper
- Certificates must be issued before 31 March 2026
📌 Important Related Compliance (Very Crucial)
🔴 TDS/TCS Correction Deadline
CBDT has also aligned timelines with the new law:
👉 Last date for correction statements: 31 March 2026
After this:
- Corrections will become time-barred
- Impact on:
- Form 26AS
- AIS
- TDS credit to deductee
🔴 New Income Tax Act 2025 Impact
From 1 April 2026:
- Old Income Tax Act, 1961 repealed
- New law introduces:
- Strict timelines (2 years limit) for corrections (https://www.taxmann.com)
- No indefinite revisions allowed
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