How to claim TDS credit while filing income tax returns?

Posted In | Finance | Accounting Software | India Accounting Tax

Tax Deducted at Source (TDS) is a means of collecting income tax in India under the Indian Income Tax Act of 1961. Any payment covered by these provisions will be paid after deducting prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service (IRS). If TDS has been deducted from your income, you are entitled to claim this amount back while filing your income tax returns. This article will guide you through the steps you need to follow to claim your TDS credit.

 

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Step 1: Check your Form 26AS

Form 26AS is a consolidated tax statement issued under Rule 31AB of Income Tax Rules to PAN holders. It shows how much of your tax has been received by the government. It is important to check this form before filing your tax returns as it will help you verify whether the TDS deducted from your income has been credited to the government.

 

Step 2: Fill the appropriate ITR form

The next step is to fill the appropriate Income Tax Return (ITR) form. Depending on the type of income, you will have to fill out the relevant ITR form. While filling out the form, you will have to provide details of your TDS in the appropriate section.

 

Step 3: Claim the TDS credit

After filling out the ITR form, you will have to claim your TDS credit. This can be done by providing the details of TDS in the tax details tab. You will have to enter the details of the TDS as per your Form 16/16A/16B.

 

Step 4: Submit your ITR form

After completing the above steps, you can submit your ITR form. Once the form is successfully submitted, the tax department will process your claim. If the claim is legitimate, the amount of TDS will be refunded to you.
 

It’s important to note that the process of claiming TDS credit can be slightly different for different types of income and the forms used for claiming TDS credit can also vary. Therefore, it’s advisable to consult a tax expert or a Chartered Accountant to help you claim your TDS credit correctly.

 

Claiming TDS credit is an important part of filing income tax returns. By following the steps outlined above, you can ensure that you claim your TDS credit correctly and in a timely manner. Remember to check your Form 26AS regularly to ensure that your TDS credit is being accurately reflected.