In order to deposit Tax Deducted at Source (TDS) with the Income Tax Department, you need to use a challan on the TRACES online portal. But if you had accidentally deposited TDS challan for FY 2025-26 under Income Tax Act 1961 when it should have been for Tax Year 2026-27 under the Income Tax Act, 2025, you’ll have to use the old TRACES portal to fix this mistake. At present the new TRACES portal cannot be used for making such a correction.
If this correction is not made, then for Tax Year 2026-2027 you will not get the TDS credit, resulting in a higher tax liability. Chartered Accountant Himank Singhla, partner SBHS & Associates says that the new TRACES portal for Income Tax 2025 compliance does not yet support challan correction.
So to make the correction, Singla says that taxpayers need to use the old TRACES portal. Singla shares the process on how to make the TDS correction:
- Old Traces portal (Income Tax Act 1961) to submit correction:
- Go to Statement / Payment › Request for OLTAS Challan Correction
- Existing FY: 2025-26 ? New FY: 2026-27
- Confirm & Submit
