TDS Refund under Income Tax Act

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  • Post last modified:January 22, 2021
  • Post category:TDS Updates

What is TDS?

Tax Deducted at Source, is tax which is deducted from the income at the time of earning the income. As per the Income Tax Act, any company or person making a payment is responsible to deduct TDS and depositing the same to the Income Tax Department.

What is TDS Refund?

TDS refund arises when the TDS or advance tax deducted from your income is higher than the actual tax liability.

TDS refund can be claimed when you fall below the minimum taxable limit and yet TDS has been deducted. 

TDS refund is calculated after considering all the deductions and exemptions applicable, after processing of Income Tax Return, and refunded to you. To claim TDS refund, you will be required to file your ITR.

It takes approximately 3 to 6 months for the refund to be credited in your bank account.

How to claim TDS Refund?

To claim your TDS refund you must provide written proof of about Income and deduction details to the Income Tax department, by filing your Income Tax Return.

You can claim your TDS refund by following the steps mentioned below:

STEP 1: File your income tax returns in the case where your employer has deducted extra amount over your actual tax liability under the head of TDS.

STEP 2: During the ITR filing process, you will be prompted to provide your bank name and IFSC code.

STEP 3: Once the tax return is filed pointing out the TDS refund, it usually takes a few months for the income tax officer to process your returns and sanction the refund.

How to claim TDS Refund online?

You can claim your TDS refund Online by following the steps mentioned below:

STEP 1: To file your TDS online, you have to first register yourself on the IT department’s website: https://incometaxindiaefiling.gov.in.

STEP 2:  If you are not already registered, register yourself on the portal.

STEP 3: Register or login on the portal.

STEP 4: Download the relevant ITR form, fill the required details, upload, and submit the form.

STEP 5:  e-verify the submitted form using your digital signature, an Aadhaar-based OTP or your net banking account.

Note: This Post was last updated on January 22, 2021

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Sunita

Founder & Director | COO & CHRO at eTaxFinance | Content Writer at eTaxFinance Blog | Department Head for Intellectual Property & Startup Team | Head-Corporate Strategy and Planning