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TDS, or Tax Deducted at Source, is an integral part of the income tax system in India. TDS is deducted by your employer, bank, or other institutions on various types of payments made to you. However, the TDS deducted can sometimes be more than your actual tax liability. In such cases, you can claim a refund for the excess TDS amount.
Retrieving your TDS refund is easy if you follow some basic steps. The income tax department has simplified the procedures to claim TDS refunds in recent times. You can now file your ITR digitally and claim the refund seamlessly.
In this blog post, we’ll walk you through the simple and easy steps on how to claim a TDS refund, check its status, and understand how and when the refund is issued.
Before diving into how to claim a TDS refund, it's important to understand who can claim a TDS refund. There are three main situations when an individual can claim a refund for excess TDS deducted:
If your employer deducts TDS from your salary, but the actual tax payable is less than the TDS, you can claim a refund. To do this, you need to calculate your total income and tax liability. File your ITR declaring your income and the TDS deducted. The excess TDS will be refunded to your bank account on record.
If your total income is below the taxable limit, you can submit Form 15G to the bank to avoid TDS deduction on FD interest. If tax is still deducted, claim a refund by declaring the interest income and TDS in your ITR. The IT department will refund the excess TDS to your account.
Senior citizens with total income below Rs 3 lakh can claim exemption from TDS on FD interest up to Rs 50,000 annually. To avoid TDS deduction, Form 15H can be submitted to the bank. If excess TDS is still deducted, it can be claimed as a refund through the ITR.
You need to file your tax returns by July 31 each assessment year. The sooner you start the income tax filing process, the quicker you can receive a refund or claim your tax.
Here are the steps on how to claim a TDS refund.
Step 1: Visit the Income Tax Department's official website and log in with your credentials. You can use your PAN card number as the user ID during registration.
Step 2: Next, hover to the 'Downloads' tab and select the relevant Assessment Year and ITR form to download.
Step 3: Open the Excel file and complete all the required details per your Form 16.
Step 4: If you have paid more tax than your actual tax liability, the ITR form will automatically calculate and display the excess amount under the 'Refund' column.
Step 5: Thoroughly review all the provided information and confirm it. After confirmation, the system will generate and save an XML file on your device.
Step 6: Go to 'Submit Return' and upload the saved XML file to the portal to complete the ITR filing process.
Once the ITR is filled, e-verify it using Aadhar-based OTP, digital signature or net banking accounts. If unable to, you can submit a signed physical copy of the document to the IT department.
Now that we know how to claim a TDS refund process, let’s know when you'll receive it. Normally, it takes approximately 4 to 5 weeks for the TDS refund to be credited to your bank account. If you don't receive it within this timeframe, check your mail or the official website for any notifications from the Income Tax Department regarding discrepancies in your ITR.
TDS refund status check can be done in two ways.
TDS refund status check through the e-Filling website-
- Go to the e-filing portal homepage.
- Enter the user ID and password.
- Go to the e-File tab. Click on Income Tax Returns and then on View Filed Returns.
- Now, you can check the refund status for the desired Assessment year.
- Click on View Details, and here you can also check the life cycle of the filed ITR.
TDS refund status check through the TIN NSDL website-
The Tax Information Network (TIN) is a database that stores nationwide tax-related information, managed by the National Securities Depository Limited (NSDL).
- Visit the official website of TIN NSDL.
- Enter your PAN card number.
- Select the appropriate assessment year.
- Complete the captcha code and click 'proceed.'
To receive a refund, ensure that your PAN card is linked to your Aadhar card.
Another important thing that taxpayers must know, besides how to claim the TDS refund process and TDS refund status check, is the mode of the refund, which is made in one of the following methods:
- Refund amount directly transferred to your bank account: It’s the usual method in which the transaction is made through NECS/RTGS. To ensure a smooth refund process, ensure all bank account details are correctly furnished in the return forms when filing your returns.
- Income tax refund via cheque: In some cases, the refund may be issued via cheque. This typically happens when the details provided in the ITR are unclear or incorrect. The Income Tax authorities issue a cheque using the account number you provided when filing your returns.
Retrieving your excess TDS amount deducted is crucial to getting back your hard-earned money. By following the simple digital procedures to file for a TDS refund claim, you can now get back the refund conveniently. Ensure you have all the necessary documents and details handy before filing the ITR online.
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