All Indian nationals who earn more than a certain amount are required to pay taxes at the current tax slab rates under Indian tax* regulations. However, Tax Deducted at Source (TDS) is withheld by the employer prior to the salary being paid to your account. As a result, when you file your income tax returns (ITR) for the financial year, you may follow the TDS refund process to request your refund.
What is TDS Refund?
A TDS refund will be given to people whose financial disclosures from the beginning of the year were less than the proof of investment they provided at the end of the year. A situation for a refund will occur if the expected investments announced at the beginning of the year are lower than the actual investments made at the end of the year. You can receive the TDS refund sooner if you file your income tax return as shortly as possible.
How to claim TDS refund?
Calculate your taxable income and taxes, submit an income tax return (ITR), and request a refund if the tax deducted does not match the tax that must be paid.
You will be asked for your bank’s name and IFSC code during the ITR filing process. This makes it simpler for the IT division to reimburse the extra tax you paid.
- When a deduction made by your employer is more than your taxable income
- To get TDS refund on your salary, you must note that if your taxable income is less than the basic exemption limit, avoid paying TDS on your salary by submitting Form 13 to your jurisdictional Income Tax Officer.
- You can give the TDS deductor the Nil deduction order issued under Section 197.
- If your bank deducts tax from your fixed deposit even though your income is below the tax threshold
- In the event that your taxable income falls below the basic exemption level, notify your bank in Form 15G that you do not have taxable income at the start of the fiscal year. As a result, you pay no tax (TDS) on your interest income.
- Despite submitting Form 15G, if your bank continues to withhold tax from your interest income (TDS), you can request a refund by submitting an ITR.
- FD accounts held by senior citizens
- Senior citizens aged 60 and up are exempt from tax deductions (TDS) on bank account interest. The exemption is still applicable, though, as long as each bank’s interest on deposits does not exceed Rs 50,000 annually.
- If your interest income is greater than the aforementioned threshold limit but your total income is below the basic exemption level (after section 80 deductions), you can inform your bank that you have no taxable income by submitting Form 15H at the start of the fiscal year.
- You can send Form 15H to your bank at the start of the fiscal year to inform them that you do not have a taxable income if your interest income exceeds the threshold level mentioned above but your overall income is below the basic exemption limit (after section 80 deductions).
- You can file an ITR to request a refund if the bank continues to deduct tax from your interest income from an FD.
Online TDS Refund Process
- To submit your TDS electronically, you must first create an account on the IT department’s website
- You can download the required ITR form after registering in order to file your income tax return.
- Complete the required fields, upload the form, and press “submit.”
- You must e-verify the ITR acknowledgement that is produced once the ITR is filed. Digital signatures, OTPs based on Aadhaar, and net banking accounts can all be used for e-verification.
- If you were unable to e-verify the ITR, you can still complete the verification by giving the IT department a signed physical copy of the document.
What is the time frame for TDS refunds?
It typically takes three to six months for the refund to be credited to your bank account assuming you filed your ITR on time. The completion of the e-verification also affects how quickly the refund will be credited. Nowadays, a reimbursement is given within a month of the ITR processing being finished.
How to verify TDS return status?
I. In the event that you have not yet received your refund, you can check the status by logging into your e-filing account and taking the following actions
Step 1: sign in to your e-filing account.
Step 2: Navigate to E-file > Income Tax Returns > View Filed Returns
Step 3: Click “see details” under the applicable assessment year for which you want to check the status of your IT refund.
Step 4: Click on the “refund status” link if the ITR has been processed and a refund is due. The screen will provide all of the information related to your ITR filing, including the date your ITR was filed, the date it was processed, and the date a refund was issued.
II. The NSDL website also allows you to check the status of your income tax refund
Step 1: Log on to the tin-NSDL website, select the ‘Services’ option, and then choose the ‘Status of Tax Refunds’ option.
Step 2: Enter the PAN, the applicable assessment year, and the captcha, and then submit to find out the refund status.
III. Other methods to check your TDS refund
- Download and check your Form 26AS, which contains information on your TDS and revenue.
- Contact the income tax officer for your jurisdiction.
- Make a complaint via your e-filing account or by contacting the Ombudsman Income Tax Department.
Types of Income Tax Refund Status
| Refund status | Meaning | Action |
| Refund paid | The ITR filing has been processed, and your account is credited with the refund | Verify the refund received with the bank. contact the registered bank to identify the problem in the event of non-receipt |
| No refund since there was no demand | Neither required to pay taxes nor eligible for any refunds. | If you have requested a refund, review the comparison you received from the IT Department and file a corrected return if necessary. |
| Refund unpaid | The IT department has accepted a refund, but it cannot be paid due to a bank or address details error. | Raise a refund reissue request and update the appropriate information on the income tax portal. |
| Undetermined refund status | Your ITR has not yet been processed. | Recheck the status in a few days. |
| Refund determined and forwarded to the refund banker | IT Department accepted the refund request, and the refund banker has been notified. | Wait for the refund to be credited to your account or try contacting the refund banker to find out the status of the refund payment. |
| Demand determined | There is an additional tax obligation that needs to be paid because the tax calculation differs from that of the IT department. | Verify the calculation done under 143(1) to determine the mismatch/error. if an error is determined, it should be corrected by paying it department within the specified timespan.If there is no error, the applicant must file a rectification and include all supporting information and documents to support their refund claim. |
| Correction made, reimbursement calculated, and information submitted to refund banker | Correction return has been accepted, and in addition, the refund amount has been recalculated and sent to the bank for processing. | Confirm refund receipt by checking your bank account. |
| Rectification processed and demand determined | The correction return has been accepted, but there are unpaid tax obligations (tax demands) that must be paid within a certain period of time. | After cross-checking all the information within the designated time frame, pay the outstanding tax/tax demand. |
| Rectification processed, no demand and no refund | The income tax department has acknowledged a corrected return. furthermore, you are not liable for a tax refund or required to pay any additional tax. |
Common Reasons for TDS Refund Claims Being Rejected Online
- Incorrect Bank Account Details: If you provide incorrect or incomplete bank account details, such as an incorrect account number, IFSC code, or account holder’s name, your refund claim may be rejected. It is crucial to double-check and ensure that you enter accurate banking information.
- Non-Filing of Income Tax Return: To claim a TDS refund, you must have filed an income tax return for the relevant assessment year. If you have not filed your return or there is a discrepancy in the filed return, your refund claim may be rejected.
- Mismatch in TDS Details: If there is a discrepancy between the TDS details reported by the deductor (employer, bank, etc.) and the details mentioned in your income tax return, it can lead to rejection. Ensure that the TDS details provided by the deductor match your records and the return filed.
- Incorrect TDS Certificate Details: If the TDS certificate (Form 16/16A) provided by the deductor contains errors, such as incorrect PAN details, TDS amount, or other relevant information, it can result in the rejection of your refund claim. Cross-verify the certificate details before submitting your claim.
- Late Filing of Refund Claim: There are specific timelines within which you must file a refund claim. If you miss the deadline, your claim is likely to be rejected. Ensure that you file your claim within the prescribed time limits.
- Non-Verification of ITR-V: After filing your income tax return online, you need to verify it either electronically or by sending a signed physical copy (ITR-V) to the Centralized Processing Centre (CPC) within the specified time frame. Failure to complete this verification process can lead to rejection of your refund claim.
- Duplicate Refund Claims: Submitting multiple refund claims for the same assessment year can result in rejection. Make sure you have not filed multiple claims for the same period.
- Outstanding Tax Liability: If you have any outstanding tax liability or dues to the income tax department, your refund claim may be rejected until those dues are cleared.
FAQs
Will I get reimbursed for any overpaid taxes?
Yes, you will receive a refund if you paid an excessive amount of tax. You must file an ITR before your return can be completed in order to receive your additional tax refund. In the event that you overpay taxes, the government will credit your account via ECS. But make sure your bank account has been prevalidated.
Do I need to include any supporting documents when I file my income tax returns?
When filing your ITR, you are not required to provide any proof or documents. However, in order to file your income tax returns successfully, you must provide the details of your Aadhaar card.
Will a person receive his TDS refund if he fails to include his bank account information on the claim form?
No, the IT department will be unable to transfer funds if he or she fails to include the bank details. It is also critical to enter these details correctly to avoid funds being transferred to the wrong account.
Can the ITR contact information be modified later?
Yes, you can edit the contact information in the e-portal page’s profile settings. Alternatively, you can update or change your email address, mobile number, or address in this section of the portal.
How can I update my address so I don’t lose the refund cheque?
You can only raise a refund re-issue request by logging into the electronic filing system. However, you can only do this if the refund cheque was returned to the Income Tax Department and you did not get it. Additionally, the taxman will no longer be liable for the amount if someone else has already collected it on your behalf.
Can I submit an offline TDS refund application?
No, the deductor cannot submit an offline refund application.
Can the deductor withdraw a request for a refund after it has been made?
You can withdraw TDS refund amount only prior to the Assessing Officer’s (AO) approval. However, you must note that the request cannot be revoked once AO has granted it.
Which website or portal should I use to claim my TDS refund online?
You can claim your TDS refund online either through NSDL (https://www.protean-tinpan.com/services/pan/pan-index.html) or portal of UTITSL (https://www.utiitsl.com/UTIITSL_SITE).
What documents do I need to submit while claiming a TDS refund online?
- ITR
- TDS Certificate
- Bank Account Details
- PAN Card
- Aadhaar Card
- Address Proof
How long does it typically take to receive a TDS refund after filing the claim online?
After filing the claim online, it takes around 3-6 months to receive the TDS refund.
What should I do if there is a discrepancy or error in my TDS refund claim online?
If there is a discrepancy or error in your TDS refund claim online, you should approach your employer/deductor to file a revised TDS return after making the necessary changes.
