How to Claim TDS Refund ( Tax Deducted at Source ) is a specified amount deducted by an
employer of his employee’s salary under section 192 or deducted by any other
institution while making payment to a person (under section 193 to 194 LA )
which is later deposited to a specified bank account of government. The
person/employee whose income TDS has been deducted has an option to claim a
refund of TDS from the government if it is excessively or wrongly paid to the
government or as the case may be.
What
is a TDS Refund?
The taxpayer holds certain rights to claim back the excess TDS paid by
the deductor to the government on behalf of the deductee on whose income TDS
has been deducted. A TDS refund is an excess of the tax payable by the taxpayer
and the actual tax paid to the government.
TDS Refund is permissible in cases where:
- Excess amount has been deducted from the Income of the employee in name of TDS by the employer than actually payable.
- The taxpayer has made payment of excess advance tax than the actual liability.
- TDS deducted on incomes exempted from Income tax etc.
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For instance, Mr. Raj
working in an MNC has been notified by his employer for deduction of Rs 8,000
every month as TDS. Later Raj discovers that while filling his IT return his
total tax payable becomes Rs 80,000 after all claims, exemptions, and
deductions
Deposited by employer = 12*8000 = Rs 96,000
Actual tax payable = Rs 80,000 (incl. cess and
charges )
Thus , he is eligible to claim a refund of Rs
16,000 from government.
How to claim a TDS Refund online?
One can claim a refund of TDS by just submitting an online Income tax
return of himself at the official web portal of the income tax department
located at www.incometaxindiaefiling.gov.in.
In case you become eligible for a TDS refund, after all, due
verification, the tax department will issue the same directly to your bank
account or by means of the refund cheque.
Verifying
the Status of TDS Refund
It is easy to confirm
the status of your TDS / Income tax refund / Refund of advance tax paid with
either of the following two options:
Confirmation of
Status from Income tax department website and the website of NSDL
Step 1: Login with your user credentials on the Income-tax department website as
stated above.
Step 2: Go to My Account > e-filed Return/Forms
Step 3: Select Income tax Returns
Step 4: Click on the Acknowledgement Number of your IT
return for which you want to confirm the status of your TDS refund.
Here, you will be
shown of your current TDS refund status updated by the tax department.
From
the website of NSDL :
Step
1: Go to https://tin.tin.nsdl.com/oltas/refund-status-pan.html.
Step 2: Enter PAN number and the Assessment year for which the refund status is
to be confirmed.
Step 3: Enter the Captcha code and Click on ‘Proceed’.
The screen will display the current status of
your TDS refund.
Knowing the TDS Refund Status
Refund Status - Not determined: This means your ITR is still not processed. Ensure that your verify
your return on time for proceeding it for processing.
Refund Status - Refund paid: This means refund paid to the bank of the taxpayer.
Refund Status - No Status: This means the department has not proceeded for calculation/processing
of demand of refund.
Refund Status - No demand no refund: This means as per the calculation of department no refund is subjected
to be payable to the taxpayer.
Refund Status - Refund Unpaid: This means refund identified and processed but not paid or transaction
was unsuccessful.
Refund Status - Sent to refund banker: This means refund is under process.
Things
to Know
- Do mention your bank account details for claiming a refund of TDS, while filling your ITR online.
- If you have been granted a specific benefit by the authority to claim a no tax / lower tax deduction of TDS under Section 197 and/or 206 C (g) using Form 13, provide such information to the deductor prior to deduction.
- To claim a refund of TDS deducted on interest income when your actual Income is under the exemption criteria, you can claim a refund of your TDS by either submitting an Income tax return as normal for the same or can file Form 15 H to the bank declaring your income to be under exemption bracket.
- For delay in payment of a refund to the taxpayer, after identification as per Section 244 A of the IT Act, 1961, the taxpayer becomes eligible to claim a penal interest from the tax department on the refund amount due to be payable.
Do you need assistance in claiming your TDS / Income tax refunds?
Don’t
worry, our in-house experts will make it more simplified for you. Email us at
support@Taxgoal.in
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