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TDS Refund - How to claim and track refund status

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Divya Singhvi

Income Tax
Refund & Notices
TDS Refund
TDS Refund Status

TDS stands for “Tax Deducted at Source“. It is deducted from a taxpayer’s income like salary, interest from bank accounts, rent, etc. It has to be deducted at the rates prescribed by the tax department. The person who is making the payment is responsible for deducting the tax and depositing the same with the government. This person is known as a ‘deductor’. TDS refund arises when TDS collected is more than what you owe to the government.

What is TDS Refund?

TDS refund is about getting a part of the paid TDS tax back into your account from the Government. While filing your income tax return, you should sum up all your income from various sources, find out the tax liability, and subtract the TDS applied to your income. If the tax amount deducted is higher than the actual tax liability for the financial year, it means a refund is due from the government. The sooner you file the income tax return, the earlier you can get the TDS refund.

How to claim a TDS refund

1. When excess tax is deducted by your employer:

ITR for NIL Income
CA Assisted Income Tax Return filing for Individuals and HUFs having income less than the basic exemption limit (INR 2,50,000).
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ITR for NIL Income
CA Assisted Income Tax Return filing for Individuals and HUFs having income less than the basic exemption limit (INR 2,50,000).
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2. TDS refund on Fixed Deposit:

3. Senior citizens with FD accounts:

How to claim TDS Refund Online?

Follow the below mentioned steps to claim TDS refund online:

How to Track TDS Refund Status?

Usually, it takes approximately 3 to 6 months for the refund to be credited to your bank account. The time it takes for the refund to be credited also depends on the completion of the e-verification. You can check the status of your refund by any of the following methods:

Check Income Tax Refund Status
Track Income Tax Refund online using PAN. The Income Tax Department issues the refund once the ITR is processed. Check your ITR refund status.
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Check Income Tax Refund Status
Track Income Tax Refund online using PAN. The Income Tax Department issues the refund once the ITR is processed. Check your ITR refund status.
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Interest on TDS Refund

If the IT department delays in paying you the TDS refund as applicable, then you are entitled to get a simple interest of 6%. This provision comes under Section 244A of the Income Tax Act. This interest accrues from the first month of the Assessment year when an ITR is filed within the due date and from the date of filing of the returns in any other case.

Note: If the TDS refund amount is less than 10% of the income tax payable, the IT Department needn’t pay this interest. Moreover, the interest, if any, received is liable to be taxed under ‘Income from Other Sources’.

FAQ

What can cause delays or non-transfer of TDS refund?

Any mistake in providing the bank account details may lead to transferring the amount to someone else or delay. To avoid any delay or non-transfer of TDS refund, you must provide the correct bank account details in the TDS certificate or ITR.

Can the deductor cancel the Refund request once submitted?

The Refund request can be cancelled only before Assessing Officer’s (AO) approval. If AO has approved the request, it cannot be cancelled.

Will a person get his TDS refund if he forgets to mention his bank details on the claim form?

No, the IT department will not be able to transfer funds in case he/she forgot to mention the bank details. Also, it is important to mention these details correctly so as to avoid the funds getting transferred to someone else’s account.

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