TDS Refund

A TDS refund is generated when the amount of tax deducted at source exceeds the taxpayer’s actual tax liability for a financial year.

This situation commonly arises when projected investments at the beginning of the year differ from actual investments made during the year.

When there is a mismatch between total TDS deducted and the income tax payable, the excess amount becomes eligible for refund.

A TDS refund is the process of claiming excess tax deducted at source by the payer.

Example: If ₹30,000 is deducted as TDS from your salary, but your actual tax liability is ₹20,000, you can claim a refund of ₹10,000.

The refund can be claimed by filing your Income Tax Return (ITR) with the Income Tax Department.

The TDS refund period refers to the time taken by the Income Tax Department to process and issue the refund.

Generally, the refund is processed within 3 to 6 months from the end of the financial year, depending on accuracy of details and verification.

1. File your Income Tax Return (ITR) if excess TDS has been deducted from your income.
2. Provide correct bank details such as bank name, account number, and IFSC code.
3. After submission, the Income Tax Department will verify the return and process the refund.

• Salary: Refund can be claimed if salary TDS exceeds actual tax liability.
• Rent: Claimable by reporting rent received and TDS deducted.
• Interest: Applicable when bank or financial institution deducts excess TDS.
• Commission: Refunds available when commission TDS exceeds tax payable.

1. Visit the Income Tax Department e-filing portal
2. Login using PAN and password
3. Select e-File → Income Tax Return
4. Choose the relevant assessment year and ITR form
5. Fill income, deductions, and TDS details
6. Verify and submit the return
7. Download the acknowledgment for reference

1. Login to the Income Tax e-filing portal
2. Go to View Returns / Forms
3. Select assessment year
4. Click acknowledgment number
5. View refund status on screen

If the refund is delayed beyond the prescribed period, interest is paid at 0.5% per month or part thereof.

The interest amount is automatically credited along with the refund.

• Refund Paid: Refund credited successfully
• No Refund: No tax demand or refund
• Refund Unpaid: Incorrect bank or address details
• Undetermined: ITR not yet processed
• Refund Forwarded: Sent to refund banker
• Demand Determined: Additional tax payable
• Rectification Processed: Correction accepted