What is TDS Refund? How to claim TDS Refund Online?

When taxpayers have to face excess TDS, they get an option to file income tax returns and claim the refund. You can get a refund of the extra amount that you do not owe to the government of India. If you are also looking to get the TDS refund, this blog will accompany you to claim the same.

Too much TDS deducted

TDS is the tax deduction at the source. It is the total amount of money deducted from the income of a taxpayer. The income includes rents, interests from bank accounts, salaries, etc. When taxpayers have to face excess TDS, they get an option to file income tax returns and claim the refund. You can get a refund of the extra amount that you do not owe to the government of India. If you are also looking to get the TDS refund, this blog will accompany you to claim the same.

Also Read: 9 ITR regulations every tax payer should be aware off when filing ITR for FY 2021-22

About TDS Refund

When the TDS amount becomes higher than the original tax calculated for any financial year, the taxpayer becomes eligible to claim the refund. People who are earning and are eligible taxpayers are categorised into different tax slabs as per their yearly income earned from all the sources. 

Suppose, you have an FD which gives you good interest. Banks charge a 10% TDS on such attained interest. If you lie in the 5% tax slab, you are eligible to claim a TDS refund. In the case of salaries, add your income from all the sources and find out the tax liability. Now deduct the TDS which was applied to your income. If TDS is more than the total tax liability for a particular financial year, you will be refunded the money due from the government.

How To Get TDS Refund?

Foremost, you need to file the income tax return and mention the details of the TDS deducted in the financial year. Income Tax Department then will take some time to go through the verification process and will refund the amount in your bank account. July 31 is the last date to file the income tax return, after that late fee is charged. Filing Form 15G and submitting it to your bank with the requisites is another option to claim a TDS refund. 

How can you Claim TDS Refund Online?

Following are the steps to file for a TDS refund:

  1. Register yourself at www.incometaxindiaefiling.gov.in
  2. Download the significant ITR Form.
  3. Mention the required details.
  4. Attach the Form on the portal and click on submit. 
  5. For e-verification, you can use a digital signature, an Aadhaar-based OTP, or your net banking account. Else you can send a hard copy of the form to the IT department.

How can you Check TDS Refund Status?

Following are the steps to check the status of the TDS Refund:

  1. Visit the e-filing portal at the Income Tax Department
  2. Log in to your account by adding the required credentials
  3. Click "View Return / Forms" from the drop-down menu
  4. Select "Income Tax Returns" from the drop-down menu
  5. Enter the relevant financial year and hit submit
  6. Select the acknowledgement number to view the status of your request

Are you confused about the new ITR forms? Here's how to use the new ITR forms

Disclaimer: This blog is just for education purposes and should not be considered a piece of expert advice. All finance schemes are subject to market risk, hence investments should be made at your own risk.

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