An assessee mistakenly selected the financial year (FY) 2025-26 instead of the correct tax year (TY) 2026-27 when depositing a TDS challan. Both the old and new TRACES portals are preventing corrections for this specific change. The recommended solutions involve either submitting a manual correction request with supporting documents to the JAO (TDS) or paying a new challan for the correct period and subsequently claiming a refund for the erroneous challan through TRACES.
02 October 2026
Assessee had deposited TDS challan by wrongly selected FY as 2025-26 instead of TY 2026-27.
Now, the Old Traces portal is limiting the challan corrections to earlier years only and New Traces portal is completely blocking the correction request to change FY 2025-26 to TY 2026-27.
So how we can make corrections in the TDS challans ?
02 October 2026
To summarize, first ensure there isn't simply a misunderstanding of tax periods, as FY 2025-26 inherently represents the 2026-27 tax year. If an actual financial year shift is required and restricted by TRACES, the solution is to either submit a manual correction request with supporting documents to the JAO (TDS) who can bypass frontend portal blocks, or pay a new challan immediately for the correct period and claim a refund for the unused challan via TRACES.
02 October 2026
To secure this refund, log into the TRACES portal, navigate to the refund section under the Statement/Payments menu, submit the unconsumed challan and bank details, and authenticate the final request using a registered DSC to generate a tracking number.