TDS Refund

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.

Steps to claim your TDS Refund:

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:

  • The first step is to file the income tax returns in the situation where the employer has deducted an extra amount than the actual tax liability under TDS.
  • The second step is that you must fill out all the needed information with the bank name, the bank account number, and the IFSC.
  • Afterwards, the tax return is filed, highlighting the TDS refund, it could take a few months for the Income-tax officer to initiate the returns and thereafter, sanction your refund.

Steps to claim your TDS Refund online: :

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:

  • Firstly, you must visit the official website of the Income Tax department at incometaxindiaefiling.gov.in.
  • The next step is to get yourself registered on the portal if you are not already registered.
  • Now, by using your Login credentials just log in to the portal.
  • Thereafter, get the ITR form that is relevant, and then file the ITR.
  • Now, fill in all the needed details carefully on the form and then submit it.
  • Use your digital signature and then e-verify the submitted form.

Steps to file your complaint for a delay in Income Tax or TDS Refund :

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:

  • Form 16
  • Bank statement
  • TDS certificate issued by the bank
  • The PAN number
  • All the requisite documents that depict your investments and earnings.

Steps to track the status of the TDS Refund :

Now, easily track the status of your TDS Refund, just by following the below-mentioned steps:

  • Step 1:
    • The Individual has to visit the e-filing website.
  • Step 2:
    • By using the Password, User ID, Date of Incorporation/Date of Birth, and captcha, login to your account.
  • Step 3:
    • Now, get to the ‘My Account’ section.
  • Step 4:
    • Choose the 'Refund/Demand Status'.
  • Step 5:
    • Thereafter, the mode of payment, the assessment year, the status, and the reason in case of a failure will be displayed.

The Interest in the TDS Refund :

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.

Conclusion :

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.

Frequently Asked Questions

  • What are the different kinds of TDS Refund statuses in the e-filing portal?
    Thereare 11 status options for your refund amount in the Income Tax e-filing portal.
  • Can a person change the contact details from what has been provided in the ITR?
    Yes, a person can change the contact details by visiting the Income Tax e-filing portal, selecting the Profile Settings, and then can change the contact details over Update Contact Details.
  • What are the factors that affect the time for TDS Refund?
    The factors that affect the time for TDS Refund are:
    • On timely submission of details, it can take around 3-6 months.
    • It also depends on the completion of the e-verification.
  • Name any 11 different TDS Refund statuses.
    The 11 different TDS Refund statuses can be as follows:
    • ITR Processed
    • No demand, no refund
    • Demand determined
    • Not determined
    • Contact the jurisdictional Assessing officer.
    • Refund paid
    • Refund unpaid
    • No e-Filing done for the assessment year
    • Rectification processed no demand no refund
    • Rectification processed demand determined
    • Rectification processed refund determined &sent to Refund Banker