The individuals who have made financial declarations at a start of the year, which are less than the proof of investment submitted at the end of a year, will be eligible for a TDS refund. If a projected investment declared at a beginning of the year is less than actual investment made at the end of a year, then situation for the tax refund will arise.
When to claim TDS Refund
In three cases the TDS refund can be claimed that are:
Read our article:All about Benefits of TDS Return Filing in India
When an Employer Deduct more than an Income Tax Payable?
- When a tax deducted does not match the actual tax payable, one can calculate the income tax & file an income tax return (ITR) to can claim a refund.
- During ITR filing process, you will be prompted to provide bank name and IFSC code. It will make easier for Income Tax department to refund the excess tax paid.
- In case you don’t have a taxable income, then you can apply for lower or NIL TDS certificate from jurisdictional Income Tax Officer in Form 13 in accordance with Section 197. Also, you need to submit the Nil deduction as order passed under section 197 to TDS deductor.
TDS refund on the Fixed Deposit
- When you don’t have a taxable income, then submit a declaration in Form 15G before an end of financial year to bank for notifying them that you don’t have the taxable income. Hence, there will be no TDS on the interest income.
- If bank deduct tax on your interest income in spite of submitting the Form 15G declaration, then you can claim refund by filing your Income Tax Return.
For Senior Citizens with the FD accounts
- If your age is 60 years or above and have a fixed deposit account, you are exempt from tax deductions on the FD interest gained up to Rs. 50,000 annually.
- If you have no taxable income for the Financial Year (after claiming a deduction of up to Rs. 50,000 for an interest income), then you can submit Form 15H to the bank to notify them that you do not have any taxable income.
- If a bank still deducts tax on the interest income from your FD, you can claim a refund by filing the Income Tax Return.
How to Claim the TDS Refund Online
To file TDS online, you have to first register on the Income Tax department website: incometaxindiaefiling.gov.in. After registering in the same, you can file the income tax return by downloading the relevant Income Tax Return form.
- Fill in all requisite details, upload a Form, and click on to submit tab upon filing an ITR.
- The acknowledgement is generated for the ITR submitted which you have to e-verify.
- The e-verification is done by using the digital signature, an Aadhaar-based OTP or from net banking account.
- However, if you fail to e-verifies TDS Return filing, then you can complete verification by sending the signed physical copy of same to the Income Tax department.
What is a TDS Refund period?
Usually, if you have filed an ITR on time, it takes approx 3 to 6 months to refund and credited in your bank account. The time it takes also depends on a completion of the e-verification.
How to check the TDS refund status
You can check the status of TDS refund by:
- Acknowledgement and refund processing email from the Income Tax Department
- Using a PAN card number to check on incometaxindiaefiling.gov.in
How to verify a status of TDS Refund
If you have not received your refund, here are a few ways to verify:
- Download and verify the Form 26AS (Annual TDS summary statement) with your TDS and with income details
- Contact your jurisdictional Income Tax office
- Get in touch with Ombudsman Income Tax Department or raise the complaint by your e-filing account
Interest on the TDS Refund
If an Income Tax department is late in paying the TDS refund as applicable, then they must pay an amount with the simple interest of 6%. This particular provision comes under Section 244A of Income Tax Act[1].
The interest accrues from a first month of the AY (Assessment year) when the ITR is filed with a due date and from the date of filing of the returns in any other case. If TDS refund amount is less than 10% of the income tax payable, then Income Tax Department need not pay the interest.
How to File a Complaint for Delay in Income Tax or TDS refund?
Even after applying for ITR, if you haven’t received your refund or there is a delay in receiving the refundable amount, you can get in touch with your Income Tax Officer to file a dispute. You will need to contact your Income Tax Officer in writing with all the necessary details and documents. If you do not receive the satisfactory response or any response for that matter, you can contact the Income Tax officer with the following details –
- PAN number
- Form 16
- Bank statement
- TDS certificate issued by a bank
- All the documents that show investments and earnings
Conclusion
A TDS Refund arises when taxes paid by way of TDS are greater than an actual tax payable calculated for FY (Financial Year). It is then calculated after consolidating income earned from the various sources. Corpbiz team will help you in filing the TDS refund, in case you need assistance then contact us.
Read our article:How to File TDS Return Online
