SynopsisTaxpayers must correct TDS challans for Tax Year 2026-27 on the old TRACES portal. This is crucial if the challan was mistakenly filed under FY 2025-26. Failure to correct will prevent TDS credit for Tax Year 2026-27, increasing tax liability. The new TRACES portal does not yet support this correction. Timely correction ensures proper tax credit and avoids disputes.ET OnlineTDS Challan correction for Income Tax Act, 2025 needs to be done using the old TRACES portal; Here’s how to do it (AI generated representative image)Tax Deducted at Source (TDS) needs to be deposited with the Income Tax Department using a challan on the Income Tax online portal. However, if you had deposited TDS challan for FY 2025-26 under Income Tax Act 1961 mistakenly when it actually belongs to Tax Year 2026-27 under Income Tax Act, 2025 then the old TRACES portal needs to be used to make this correction. 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 CorrectionExisting FY: 2025-26 ? New FY: 2026-27 Confirm & Submit