What is a TDS refund?
TDS is the money deducted from a taxpayer’s salary, interest from bank accounts, rent, sale of property, and the like. A taxpayer can claim a TDS refund when the tax collected is higher than the actual TDS liability. Once you submit the documentary proof of this to the income tax authority, you will be able to track your TDS refund status. This guide will help you understand the TDS refund process. However, before you can track the TDS refund status, you will have to raise a claim for a TDS refund.
TDS refund: When can you raise the claim?
A TDS refund can be claimed in one of the following situations:
- When your company deducts excess TDS from your salary, because you failed to submit investment proofs.
- Your banks have deducted 10% standard TDS on your savings even though you fall in the 5% tax slab.
How to claim a TDS refund?
You can claim a TDS refund from the Income-Tax Department at the time of filing your ITR, after calculating your income, expenses and investments.
Also read: All about refund status of income tax
How to claim a TDS refund if your employer has deducted excess TDS?
In such a scenario, apply for a lower or Nil TDS certificate in Form 13 as per Section 197 of the income tax law. This can be done by visiting your jurisdictional income tax officer. Submit this form to your employer.
How to claim a TDS refund if your bank has deducted excess TDS on interest earned on savings like FD and RD?
To make sure that your bank does not deduct the standard 10% TDS on your savings, fill and submit Form 15G at the start of the financial year. If you fail to do so, the bank would deduct 10% TDS, which can be claimed as a refund at the time of filing ITR. The same process is applicable for senior citizens (ages 60 and above) earning interest on their savings.
Note: Even though interest earned on savings by senior citizens is exempted from TDS, this threshold is capped at Rs 50,000 for each account. In case the interest is more than that, the bank would deduct TDS.
How to check TDS refund status?
Step 1: To view your TDS refund status, go to https://tin.tin.nsdl.com/oltas/servlet/RefundStatusTrack. Provide your PAN and assessment year and input the captcha code. Click on ‘Proceed’.
Step 2: The screen will reflect your TDS refund status.
TDS refund status check on the e-filing website
Registered taxpayers can check their TDS refund status by logging into their account on the official e-filing website and following the below-mentioned steps:
Step 1: Use your credentials to log in.
Step 2: On the home screen, select ‘My Account’.
Step 3: Select ‘Refund/Demand Status’. The TDS refund status will be visible on the screen, along with the reason for any failures and mode of payment.
Note: Your TDS refund status will also be reflected under the ‘Tax Credit Statements’ in your Form 26AS.
TDS refund status: Messages you will see on your screen
Your account would show you one of the following messages in answer to your TDS refund status query:
- Refund paid
- Refund unpaid
- No demand no refund
- Demand determined
- Not determined
- No e-Filing has been done for this assessment year
- ITR processed
- Refund determined and sent out to refund banker
- Contact Jurisdictional Assessing Officer
- Rectification processed refund determined and sent out to Refund Banker
- Rectification processed demand determined
- Rectification processed no demand no refund
See also: How to pay TDS online
Process to verify TDS refund status
You have the option to verify your TDS refund status on the e-filing portal, using your login credentials.
Step 1: Log into your e-filing account.
Step 2: Under ‘Income Tax Returns’, select ‘View Filed Returns’.
Step 3: Use the relevant assessment year and click on ‘View Details’. Click on ‘Refund Status’ to know the details.
Alternatively, you can visit the tin-NSDL website and know the status of your TDS return by providing your PAN, assessment year and captcha code.
TDS refund: Modes of TDS refund
The Income Tax Department sends your TDS refund in the following forms:
- RTGS or NECS: To enable credit of refund directly to the taxpayer’s bank account, MICR code and IFSC code of the bank branch and correct communication address are mandatory.
- Cheque: Bank account number and correct address are mandatory.
See also: All about TDS on property sale
TDS refund time
Once a TDS refund claim is made, a TDS refund may take three to six months.
Interest on late payment of TDS by the I-T Department
Under Section 244A of the Income-Tax Act, which provides for interest on refunds, if excess TDS is deducted, you can receive 1.5% interest on the extra amount from either April 1 of the assessment year till the refund initiation date or from the date of income tax returns submission to the date when the refund is granted.
FAQs
What is TDS full form?
TDS full form is tax deducted at source.
Who deducts TDS?
Those making certain payments deduct TDS on behalf of the income-tax authority. The tax liability ultimately lies on the one receiving the payment.
