In a significant announcement, the Central Board of Direct Taxes (CBDT) has extended the deadline for issuing TDS certificates (Form 16A) for the third quarter of Financial Year 2025-26 (Q3 FY26), which ended on December 31, 2025. The new deadline for issuance is now March 31, 2026.

This extension comes in response to numerous representations received by the CBDT, highlighting technical glitches and difficulties faced by deductors on the e-filing income tax portal. These issues reportedly hindered the timely generation and issuance of TDS certificates.

Impact on Deductors and Taxpayers

Normally, TDS certificates are required to be issued within 15 days of filing quarterly returns. The extension aims to provide much-needed relief to deductors, allowing them more time to comply with the regulations without incurring penalties.

For taxpayers, this move ensures they receive accurate and timely TDS details, which are crucial for assessing any additional tax liability and filing their income tax returns correctly.

The CBDT's Circular No. 2/2026, dated March 26, 2026, formally acknowledges these technical issues and confirms the extended due date. TDS certificates issued within this revised period will be considered as having been issued within the prescribed time, aligning with Section 203 of the Income-tax Act, 1961, read with Rule 31 of the Income-tax Rules, 1962.