KSCAA Flags Delay in Q4 TDS Return Processing, Urges CBDT to Restore Form 16 Download Facility

The Karnataka State Chartered Accountants Association (KSCAA) has written to the Central Board of Direct Taxes (CBDT) drawing attention to the serious problems being faced by taxpayers, deductors and tax professionals due to delay in processing Quarter 4 TDS returns for FY 2025-26. The association also informed that the facility to generate and download Form 16 and Form 16A from TRACES portal is currently not available.

According to KSCAA, many deductors have already filed Quarter 4 TDS statements, but many of these returns are yet to be processed. This results in non-generation of Form 16 and Form 16A and poses difficulties for employers, businesses and professionals who are mandated to issue these certificates within stipulated timelines.

The association said the delay is affecting the taxpayers as Form 16 and Form 16A are important documents that are used for filing income tax return and for verifying tax credit. In many cases, TDS credits are not properly reflected in Form 26AS and Annual Information Statement (AIS), leading to uncertainties and reconciliation problems.

The KSCAA said the problem continues and may lead to complications during the income tax return filing season. Incomplete or absent TDS information may lead to errors while filing returns, higher compliance burden and delays in claiming eligible tax credits.

The association also said that there is a likelihood of higher number of grievances and rectification requests raised by the taxpayers due to non-reflection of TDS credits. Other administrative pressures are also added for tax professionals and deductors who answer queries from employees, vendors and other deductees.

KSCAA also expresses concern on the issues faced by the public in filing correction statements. The current backlog is causing hindrance to deductors for correcting the required details such as deductee details, correction of challan details or correcting other data as the correction returns can be processed only after successful processing of original TDS statements.

KSCAA has urged the CBDT to take immediate steps to process the pending TDS statements and restore the Form 16 and Form 16A download facility on the TRACES portal. The association emphasized that timely resolution of these issues is essential to ensure smooth tax compliance and avoid disruption during the return filing season.

KSCAA has represented to CBDT regarding the delay in processing Q4 TDS statements (FY 2025-26) and the non-availability of Form 16/Form 16A download facility on TRACES.#KSCAA #CBDT #TDS #Form16 #Form16A #TRACES #IncomeTax #TaxCompliance #AIS #Form26AS #CharteredAccountants pic.twitter.com/4EdtE83AEN

— Karnataka State Chartered Accountants Association (@KSCAA_CA) June 14, 2026