Excess TDS Deducted? Here's How To Check And Get Quick Refund
To ensure a quick refund, file your tax returns as soon as possible after paying your taxes.
Tax deducted at source is an important mechanism employed by the Income Tax Department to ensure the timely collection of taxes at the point of income generation.
While it helps streamline the process of tax collection, errors in its calculation can sometimes lead to excessive deductions.
Understanding TDS
TDS is the amount deducted by the payer at the time of making certain payments, such as salaries, interests or professional fees. The tax deducted is based on the prescribed tax slabs set by the government. Sometimes, due to miscalculations, taxpayers may end up with more TDS deducted than necessary.
If you've found that excess TDS has been deducted from your income, you can easily claim a refund.
How To Claim TDS Refund
You can claim a refund by following a simple process through the official Income Tax portal. Here's how:
Filing Income Tax Return: The first step in claiming a TDS refund is to file your ITR for the relevant financial year. In the ITR form, you must provide the details of the TDS that has already been deducted as well as the total tax payable. Make sure to report accurate details as per Form 16 (for salaried individuals) or Form 26AS (a summary of TDS deducted from all income sources).
No Specific Forms Required For TDS Refund: You don’t need any separate forms to apply for a TDS refund. The excess TDS will automatically be reflected in your ITR filing once you include the income and details of tax paid in advance. The income tax computation section will show if there's a refund due. This is where you'll see the amount of TDS that has been over-deducted.
Processing: Once your ITR is filed and accepted, the refund process begins. The Income Tax Department will verify the information and, if everything checks out, initiate the refund.
Check Refund Status: Once the refund is processed, you can track its status on the Income Tax portal.
What If Your Refund Is Delayed?
In case your TDS refund has been delayed or rejected, you will receive intimation from the I-T Department. It'll explain the reason for the delay or rejection. If you're not satisfied with the explanation, you can raise a query through the online portal.
Things To Keep In Mind
File Your Returns Early: To ensure a quick refund, file your tax returns as soon as possible after paying your taxes.
Keep Track Of TDS Documents: Ensure that your TDS documents, such as Form 16, Form 16A and Form 26AS, are accurate.
File Form 13, If Necessary: If you believe that excessive TDS has been deducted for a particular fiscal, you can file Form 13 with the Income tax department to request a reduction in the TDS rate.
Double-Check Your Bank Details: When e-filing your ITR, make sure your bank account details are up-to-date and accurate. This ensures that any refund due is credited to the correct account without any delays.
If you find that excess TDS has been deducted, don’t panic. The process of claiming a refund is easy through the Income Tax e-filing portal. All you need to do is file your income tax return, check the details and submit the necessary documents, if any. The Income Tax Department will assess the ITR details and any excess tax paid will be refunded directly to your bank account.
