Everyone who is working is well aware of the term TDS & TDS Refund. In simple terms, the TDS Refund occurs when the tax amount which is deducted is more than the actual tax liability of the individual. It can also be said that a TDS Refund arises, when there is a mismatch in the total tax subtracted at the very end of the financial year, and the actual income tax that you were supposed to pay for that specific year.
Below mentioned are the steps that you must follow to claim your TDS Refund in the most smooth and hassle-free way. The steps are as follows:
To claim your TDS Refund online, just follow the below-mentioned steps and get your refund initiated with zero errors. The steps are as follows:
If you have filed for an ITR, but have not received your refund yet or it is getting delayed every time, then for the refundable amount you should connect with your respective Income Tax Officer to file a dispute. With all the necessary details and required documents, one must have to contact the Income Tax officer in writing itself. It is important to note that if you are unable to get a satisfactory response or any response from the concerned person, you can also contact the Income Tax Ombudsman with the below-mentioned details:
Now, easily track the status of your TDS Refund, just by following the below-mentioned steps:
A person is entitled to a simple interest of 6% p.a. on the refund amount under Section 200A of the Income Tax Act, in the case when the Income tax department is late in paying the tax refund, which applies to you. In addition, the interest is not given out if the tax refund is less than 10% of the total tax payable amount in the year. Furthermore, the interest also starts from the very first month i.e. April of any financial year. Apart from this, the interest, which is earned on the tax refund, is also taxable as it is considered only under the income from other sources.
Example of TDS Refund : Now, let us understand TDS Refund with the help of an example:
Let’s say Manoj works with an MNC in Gurgaon & last year he was late in submitting his documents for LIC premium exemption under section 80C. Due to the late submission, his company deducted Rs. 10k extra as the TDS.
The total tax payable by Manoj for the year is Rs. 30k. The tax which was deducted by Manoj's employer was Rs 40k. The Refund for which Manoj is eligible is 40k-30k ie. 10k.
The TDS Refund is considered to be very important because it is your hard-earned money only. Now, do not let excess TDS deductions put a burden on your salaried income at any point in time. Just follow the above-mentioned steps and easily apply for your TDS Refund. The TDS refund is very simple to apply and it also provides you with interest on the refund in case of any delay on the part of the authorities.