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TDS is tax deducted at the source which means tax is subtracted from the salary of an individual before the amount credited to his account. It is a sum that will be deducted from a taxpayer’s income such as salary, interest from a bank account, rent, etc. You will get a TDS claim refund only if you have paid TDS more than what you owe to the government. The rates of TDS are decided on the basis of the age bracket and the income of different individuals. In this article, you will get to know how to claim TDS refund or how to get TDS refund, and if you want to know, just read this article carefully.

What is TDS refund?

TDS refund occurs when taxes are paid by way of TDS and the paid TDS claim status is more than the actual tax payable. If you have made a financial declaration at the commencement of the year, which is lesser than your actual investment proofs submitted at the end of the year, then you will be eligible for a TDS refund.

 For example, if you have a projected investment at the beginning of the year that was 3,00,000, whereas your actual investment is 4,00,000. Then you may be eligible for a TDS refund as you have paid higher TDS in the year, due to low investment declaration.

For getting a TDS refund you need to file your ITR on time.

 TDS refund In case of different payments

There are various circumstances in which you can claim your TDS refund, these are as follows: -

The case where your employer deducted more tax than actual liability payable

1. In this case, you can claim the difference amount by filing an ITR.
2. During this process, you will need to provide your bank account details and Indian financial system code (IFSC) to the ITR department for making your refund process easier.

Note: - If in any financial year, you are sure that your TDS deducted will be more than the total tax payable by you, then in u/s 197 you can file Form 13 in advance for lower or nil TDS deduction.

Case, where your income is lower than the tax slab and your bank, deducts tax

If in case your income does not fall under the income tax bracket or income tax is less but the bank has deducted more tax on your fixed deposit, in this case, you can claim a refund in two ways.

1. First of all, you need to declare this in your IT return form and thereafter IT department will automatically compute the refund and will credit it to your account.
2. And the second way is to fill Form 15G with the bank and notify them that your salary is below tax slab and hence there is no tax should be levied on it.

The case where you are a senior citizen with fixed deposit accounts

If your age is 60 or above and you have a fixed deposit account. Then you are exempt from tax deductions on fixed deposits earned up to 50,000 annually.

1. If in case you do not have taxable income for a financial year. Then you can submit a form 15H with your bank to notify them that you don’t have a taxable income.
2. And if the still bank deducts tax on your interest income from a fixed deposit, you can claim a refund by filing your income tax return.

How to claim TDS refund?

How to claim TDS refund Online

(How to refund TDS or TDS refund process)

For Claiming a TDS refund status or TDR refund status online you need to file your ITR by following these steps:

Step 1: - First, you need to visit incometaxindiaefiling.gov.in , the official website of the Income Tax Department.

Step 2: - If you are not registered on the portal, register yourself.

Step 3: - Now login to the portal by using login details.

Step 4: - Find out the applicable ITR to you and file your ITR accordingly.

Step 5: - Fill out the required details on the Form and submit the same.

Step 6: - Now do e-verification of submitted form by using your digital signature and your Aadhaar based OTP. You can also use a net banking account.

How to check TDS refund status

You can check your TDR status (tdsrefundstatus) in the following ways: -

1. First, you have to visit the online e-filing portal.
2. Now click on the section labeled ‘My Account’ and then select ‘Refund/Demand Status’.
3. It will reflect the assessment year, the status, reason (in the case of failure), and the mode of payment.

What is the time period for TDS refund?

If you filed your ITR on time, you can await the refund to get credited to your bank account within three to six months. The time of the refund period will also depend on the completion of the e-verification process. Provided that if you do not receive a refund on time. You may examine Form 16 with your employer and contact the income tax department.

How to verify the status of TDS refund?

If in case you do not receive your refund, here are three ways to verify this

1. First of all download and verify your Form 26AS with your TDS and income details.
2. You can get in touch with your jurisdictional Income Tax Office, or
3. You can contact the ombudsman Income Tax Department or you can raise your complaint by your e-filing account.

Interest on TDS refund

If there is a delay in refunding of tdsrefund amount, the Income Tax Act empowers you to receive interest. And the interest is calculated at a simple rate of 6%. This provision comes under section 244A of the IT department.

The accumulation of interest takes place from the first month of the financial year, i.e. April, and it is taxable under the head of ‘Income from other sources’.

Note: - The interest is not payable if the amount of refund is lower than 10% of the total tax payable.

Conclusion

So if you have paid extra TDS. And want to claim TDS refund you need to file your ITR on time. And for filing your ITRyou can contact the team ofTAX ADVISORYat any time without any hesitation. You can visit our official website www.taxadvisory.in . And get more information about income tax-related issues or you can contact us directly on 8077361475. Our team of experts is always ready for your help.

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