Clarification on TDS Demand Raised for Financial Year (FY 2010-11)

[Ramanathan Seshan]

Dear Members,

As you're aware, the recent amendment introduced through the Finance Act has made TDS filings up to FY 2018–19 time-barred, meaning we can no longer file correction TDS returns for those years.

We had filed a correction TDS return for FY 2010–11, which initially showed a demand of ₹10,000 towards interest on short deduction. There were no other outstanding demands at the time. However, after the correction TDS return was filed on 29th March 2025 and got processed on 31st March 2025, a new demand of ₹15 lakhs has been raised under "short deduction." This did not exist previously.

Given that we are now unable to file any further correction TDS returns due to the time bar, we would like to seek clarity on the following points:

1. Is there any way to rectify or dispute this new demand under the current circumstances?

2. Can the authorities initiate recovery proceedings for a time-barred TDS matter?

3. Can we meet/write a request letter to jurisdictional AO or contact CPC for manual submission of return ?

Regards,

S Ram

AI Summary

Rectification under Section 154 can be sought for system-generated TDS demands; seek AO representation and stay of recovery.
A correction TDS return filed before the statutory cut-off produced a new automated demand on processing; this can be contested as a system-generated or apparent-record error. The assessee should pursue rectification remedies-submit a written rectification request to the jurisdictional TDS assessing officer or CPC/TRACES with return acknowledgements, demand notices and computations-and seek deferment or stay of recovery pending resolution.