TDS, or Tax Deducted at Source, is a form of income tax, which is levied on certain payments made above a threshold. It is used by the government to minimize tax evasion by deducting the tax liability at the source. Payments on which TDS is levied include salaries, interest payment by banks, rent, professional fees, etc.

The deductor deposits TDS to the government on behalf of the deductee and issues a TDS certificate. The deductee can reduce the TDS amount already paid while filing the Income Tax Return (ITR).

What Is TDS Refund?

If for any reason, the tax deducted is more than the liability, a TDS refund can be claimed. While filing the ITR, a person can claim for tax-relaxation if he has already paid TDS in excess.

How To Claim TDS Refund?

As pointed before, there is no particular method for claiming TDS refund and can be done during filing of yearly ITR. However, let’s try and understand how TDS refund can be done for different payments.

TDS Refund On Salary:

If the deductee fails to submit the required certificates on time, to claim various deductions under Section 80C, the deductor may deduct TDS in excess of the liability. You can easily claim a refund while filing the ITR and provide your bank details to expedite the refund process.

There is also a provision under Section 197 where you can file Form 13 if you are anticipating NIL or lower TDS in advance for a financial year. The TDS certificate issued by the tax department can then be shown to your company to claim relaxation.

TDS Refund On Fixed Deposits (FDs):

If the bank deducts TDS on your fixed deposit interest, even though your income doesn’t fall in the taxable income tax slab, you can claim a TDS refund. There are two ways of doing this. One way is to claim a refund while filing your ITR returns. The other way is through filing Form 15G and submitting to the bank directly for remedying the situation.

TDS On FDs Of A Senior Citizen:

Senior citizens above 60 years of age are exempted from TDS on their fixed deposit account. If the bank still deducts TDS from their account, they can claim a refund by filing Form 15H and submitting to the bank. You can also claim the refund when you file your ITR.

How To File TDS Refund Online?

You can easily file your TDS refund by registering on https://incometaxindiaefiling.gov.in/. Download the ITR files according to your needs and submit it along with the required documents like PAN and Form 16. If everything is fine, you should have your refund within six months. You can also check the status of the refund on the tax department website.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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