Sometimes, more tax is deducted from your income than what you owe. This extra tax can be claimed back from the Income Tax Department as a refund. To understand how to claim TDS refund, this blog will guide you through the process step by step, including when you can claim, what forms to use, and how to check your TDS refund status.
TDS is a way for the government to collect tax in advance. However, the deducted amount can sometimes exceed your actual tax liability. This excess is called TDS overpayment and can be claimed as a refund.
You can claim a TDS refund while filing your income tax return (ITR) for the financial year in which the tax was deducted. The refund is applicable if:
After filing your return, check your refund status online by:
Follow these steps to claim your TDS refund smoothly:
Calculate Total Tax Liability
Determine your total income and compute tax payable after deductions.
Collect TDS Details
Use Form 26AS or Annual Information Statement (AIS) to verify all TDS entries for your PAN.
File Income Tax Return (ITR)
File your return online stating TDS deducted and your actual tax liability.
Verify Your Return
E-verify using Aadhaar OTP, net banking, or digital signature certificate (DSC).
Wait for Refund Credit
Refund credited to your bank account linked to your PAN once processed.
If the refund process is delayed, you may receive interest under Section 244A of the Income Tax Act:
Tracking your TDS records carefully can help avoid these issues.
There is no standalone form for TDS refund. You claim it through your Income Tax Return (ITR). Use the appropriate ITR based on your income type:
Make sure your bank account is pre-validated and linked to your PAN for refund credit.