Income can be from many means. At the same time, income tax also has to be paid after a certain amount in India. Income tax is collected through the government. All Indian citizens who earn more than a certain amount are required to pay tax at the current tax slab rates under Indian tax regulations. However, TDS (Tax Deducted at Source) is deducted by the employer even before the salary is credited to your account. Although many people do not know that this TDS amount can also be recovered, as well as many people are not even aware of the TDS claim.
What is TDS refund?
TDS refund can be claimed by those people whose employer has deducted tax. Whereas the situation of refund will happen when the expected investment declared at the beginning of the year is less than the actual investment made at the end of the year. If you file Income Tax Return as soon as possible, then you can get TDS Refund quickly.
How to claim TDS refund?
Calculate your taxable income and tax. File the Income Tax Return (ITR) and request for refund if the tax deducted does not match with the tax paid. After this, the refund will come in the account in a few days.
Information will be sought
At the same time, during the ITR filing process, you will be asked for your bank name and IFSC code. This makes it easier for the Income Tax Department to reimburse the excess tax paid by you. You can request a TDS refund when you file your Income Tax Return (ITR) for the financial year.
How to Claim TDS Refund Online?
Claiming Tax Deducted at Source (TDS) refund online is a simple process involving filing income tax returns. It includes the following steps:
1. Sign in or sign up on the online e-filing portal of the Income Tax Department, i.e., incometaxindiaefiling.gov.in
2. Fill in the relevant details in the applicable Income Tax Return (ITR) form.
3. On submission of the ITR, the portal generates an acknowledgement.
4. E-verify the acknowledgement through the digital signature, net banking account, or an Aadhaar-based one-time password (OTP).
How to apply for the TDS rebate or Income Tax Return (ITR)?
The TDS refund process is straightforward. You just need to visit the income tax portal and login to download the relevant form for an income tax refund. Enter all the particulars and submit the form. If the employer has deducted tax when you are not eligible for it, you can claim the amount by filing income tax returns (ITR). The department will review the taxable amount, and you will receive the amount directly in your bank account.
How to check the TDS refund status?
Visiting the online e-filing portal helps in knowing the refund status.
1. Log in to your account.
2. Check out the section labelled ‘My Account and select ‘Refund/Demand Status.
3. This reflects the assessment year, the status, and the mode of payment. In case of rejection, the corresponding reason is mentioned here as well.
How to verify the status of a TDS refund?
After applying for a TDS refund, you must also know when the TDS amount will be refunded to your account. Follow these steps if you do not receive the TDS refund at the time mentioned above.
1. Download Form 26AS and compare it with your income and TDS details. In case of mismatches, get in touch with the TDS deductor to check the accuracy of the TDS returns they filed.
2. Contact the concerned income tax officer or the ombudsman. Their contact details are available on the online e-filing portal.
What is the TDS refund period?
If the ITR is filed on time, you can expect the refund to get credited to your bank account in three to six months. The credit is also a function of the completion of the e-verification formality.
Steps for raising a complaint about the delay in receiving ITR
If you have not received the refund even after you applied for ITR, you need to get in touch with the officer to file a dispute. Provide all the information and details. If there is no response, you can contact the Income Tax Ombudsman with your PAN, Form 16, bank statement, TDS certificate issued by the bank, and documents that show earnings and investment.
Interest in TDS refund
In case of delays in refunding the TDS amount, the Income Tax Act entitles you to receive interest. The interest is calculated at a simple rate of 6%. The interest accrual takes place from the first month of the financial year, i.e., April, and is taxable under ‘Income from Other Sources.’ However, the interest is not applicable when the refund amount is lower than 10% of the total tax.
How do I Track My Income Tax Refund?
Here is the process to track your income tax refund:
- With your User ID, password, date of birth or incorporation, and captcha log in to the e-Filing website.
- Select “Refund/Demand Status” from the “My Account” menu.
- The following details will appear:
3.Reason (For Refund Failure if any) (For Refund Failure if any)
Some important points to remember:
1. The threshold for TDS deduction varies according to the payment types. For example, the bank deducts TDS if the FD returns exceed ₹40,000 in a year. The said threshold is ₹50,000 in the case of senior citizens. Likewise, the TDS rate varies regarding salaries, professional fees, etc. The TDS rate also differs according to the nature of the payment.
2. The refund is applicable when the paid TDS amount exceeds the tax liability.
3. It is essential to mention the tax-saving instruments in the ITR accurately. For instance, the premiums paid under an insurance policy are allowed as a deduction under Section 80C. However, duly note that you must not consider insurance solely as a tax-saving product. You must get coverage from a reputed insurance player like Kotak Life to avail the best protection plans.
4. The bank details should be entered appropriately to receive the refund in your bank account. Incorrect details can cause delays in receipt or non-receipt of the refund amount.
5. If you missed claiming the refund while filing the return, you could file a revised return.
Now that you know the TDS refund procedure and how to withdraw the TDS amount online, you can go ahead and claim your rebate.