How to Claim TDS Refunds in India?

Posted In | Finance | Accounting Software | India Accounting Tax

Tax Deducted at Source (TDS) is a mechanism by which the Government of India collects income tax from individuals and businesses. It is deducted at the time of payment, and the deducted amount is remitted to the government. In some cases, taxpayers may have paid more tax than they are liable for, resulting in a TDS refund. This article will guide you through the process of claiming TDS refunds in India.

 

Step 1: Check for TDS Deductions

Before you proceed with claiming a TDS refund, you should first verify whether excess tax has been deducted in your case. You can do this by checking your Form 16 or Form 16A, which are TDS certificates provided by your employer or the entity that has deducted tax. These forms will show the amount of tax that has been deducted from your income.

 

Step 2: File Your Income Tax Return (ITR)

To claim a TDS refund, you must file your Income Tax Return (ITR) for the relevant financial year. You can file your ITR online through the Income Tax Department's e-filing portal (www.incometaxindiaefiling.gov.in). Make sure to fill in all the necessary details in your ITR form, including the TDS details from your Form 16 or Form 16A.

 

Step 3: Verify Your ITR

After filing your ITR, you need to verify it within 120 days of submission. You can verify your ITR through the following methods:
 

• Electronic Verification Code (EVC) sent to your registered mobile number and email ID
   

• Aadhaar-based OTP verification
   

• Digital Signature Certificate (DSC)
   

• Physical ITR-V submission to the Central Processing Centre (CPC), Bengaluru
   

Once your ITR is verified, the Income Tax Department will process your ITR and compute the tax refund amount, if any.

 

Step 4: Track Your Refund Status

You can track the status of your TDS refund through the following methods:

 

• Visit the Income Tax e-Filing website and log in to your account. Go to the 'My Account' tab and click on 'Refund/Demand Status'.
   

• Visit the Tax Information Network (TIN) website (https://tin.tin.nsdl.com/oltas/refundstatuslogin.html) and enter your PAN and the relevant assessment year.
   

If your refund has been processed, you will receive the refund amount directly in your bank account through Electronic Clearing Service (ECS) or by cheque.

 

Claiming a TDS refund in India is a simple and straightforward process. By filing your ITR correctly and verifying it on time, you can ensure that any excess tax paid is refunded to you. Make sure to keep track of your TDS deductions and refund status to avoid any discrepancies or delays in receiving your refund.