TDS (Tax Deducted at Source) deducted in March will typically be reflected in your PAN account (Form 26AS or AIS) after the deductor files the TDS return for the fourth quarter (January to March).
Timeline for Reflection in PAN (Form 26AS/AIS)
- TDS Deducted in March → Must be deposited by 30th April
- TDS Return Filing Due Date → 31st May
- Form 26AS Update → within 24hrs (Usually by mid-June or early July)
You can check your Form 26AS or AIS (Annual Information Statement) on the Income Tax e-Filing portal to verify the TDS credit.
To get a TDS (Tax Deducted at Source) refund, you must meet certain conditions and follow the process outlined by the Income Tax Department of India. Here are the key conditions:
1. Excess TDS Deducted
If the TDS deducted from your income is more than your actual tax liability, you are eligible for a refund.
2. Income Below Taxable Limit
If your total income is below the basic exemption limit, you can avoid TDS deduction by submitting Form 15G (or Form 15H for senior citizens) to your bank or employer.
If TDS was deducted from your earnings (salary, fixed deposits, professional fees, etc.), but your total income is below the taxable limit, you can claim a refund.
3. Investment in Tax-Saving Instruments
If you have investments under Section 80C (PPF, LIC, EPF, etc.) or other deductions, but TDS was deducted without considering these exemptions, you may get a refund.
4. Filing an Income Tax Return (ITR)
To claim a refund, filing an ITR is mandatory. The Income Tax Department will process your refund based on the details in your return.
5. Correct Bank Details
You must provide accurate bank account details (account number, IFSC code, etc.) while filing the ITR for direct credit of the refund.
6. Non-Resident Indians (NRIs)
NRIs can claim a refund if TDS was deducted at a higher rate but they are eligible for relief under Double Taxation Avoidance Agreement (DTAA).
7. Form 26AS Verification
Ensure that the TDS details in Form 26AS match with the TDS certificates (Form 16 or 16A) provided by the deductor.
1. Check Form 26AS (TDS Details)
Form 26AS shows all tax deducted and deposited with the government. You must verify it before filing your ITR.
Steps to Download Form 26AS:
- Go to the Income Tax e-Filing portal: https://www.incometax.gov.in
- Login using PAN/Aadhaar and password.
- Click on “e-File” > “Income Tax Returns” > “View Form 26AS”.
- You will be redirected to the TRACES portal.
- Click on “View/Download” and select the Assessment Year.
- Verify the TDS deducted from different sources (salary, FD, etc.).
2. File Income Tax Return (ITR) for TDS Refund
Steps to File ITR Online:
- Login to https://www.incometax.gov.in.
- Go to “e-File” > “Income Tax Return” > “File Income Tax Return”.
- Select Assessment Year (For FY 2023-24, select AY 2024-25).
- Choose Filing Type: Individual.
- Select ITR Form:
- ITR-1 (Sahaj) – For salaried individuals with income up to ₹50 lakh.
- ITR-2 – If you have capital gains, multiple sources of income.
- ITR-3 – If you have business/professional income.
- Pre-fill Details (Income, TDS, etc.).
- Verify and Claim Deductions (if applicable).
- Compute and Verify Tax Liability:
- If TDS deducted is more than tax payable, refund is auto-calculated.
- If tax is due, pay via Challan 280 before proceeding.
- Verify Your Return using Aadhaar OTP, net banking, DSC or by sending a signed ITR-V to CPC Bangalore.
- Wait for Processing – The IT Department will verify the claim and process the refund, usually within a few weeks to months.
- E-Verified Returns: If your ITR is e-verified without discrepancies, the refund is usually processed within 20 to 45 days. You will receive an intimation notice under Section 143(1), confirming the refund amount.
- Manual Verification or Issues: If there are errors or mismatches in your ITR, it may take longer, sometimes up to a few months.
- Refund Status Check: You can track the status of your refund on the Income Tax Department’s e-filing portal.
3. Check Refund Status
- Go to e-Filing portal > “My Account” > “Refund/Demand Status”.
- Enter PAN and assessment year.
- Refund is processed within 30-90 days if all details are correct.
In essence:
- The core requirement is that you’ve paid more tax than you owe.
- Filing an accurate ITR is the mechanism to claim that excess back.
common mistakes to avoid when claiming a TDS refund?
Here are some common mistakes people make when claiming a TDS refund and how to avoid them:
- Incorrect Bank Details: Providing wrong bank account details or IFSC codes can delay the refund. Always double-check your information before submitting.
- Mismatch in Income Details: Discrepancies between the income details in your ITR and Form 26AS can result in processing delays. Ensure all income sources and TDS deductions are accurately reported.
- Incomplete Verification: If you fail to e-verify your ITR, the refund process won’t begin. Always complete the e-verification on time.
- Wrong ITR Form: Filing the wrong ITR form based on your income type can lead to rejection. Choose the form that best matches your income category.
- Missed Deductions: Forgetting to claim deductions under Sections like 80C, 80D, or 80TTA might reduce your refund amount. Review your eligible deductions thoroughly.
- Filing After the Deadline: Filing your ITR late can delay the refund process or make you ineligible for it. Make sure you file within the stipulated time.
- Unclaimed TDS Entries: If certain TDS deductions are not reflected in Form 26AS or TDS certificates, you may miss out on claiming them. Confirm all TDS deductions are correctly recorded.
- Errors in Tax Computation: Miscalculating your tax liability can affect your refund claim. Use the income tax calculator available on the Income Tax Portal to cross-check.
Yes, you can still get a TDS refund if you file your previous year’s Income Tax Return (ITR) in the current year, but it depends on a few factors:
1. Filing Within the Due Date or Belated Return:
- If you filed the return before the due date (usually July 31 for individuals), you are eligible for a refund.
- If you filed a belated return (after the due date but before the deadline for late filing, i.e., December 31 of the assessment year), you can still claim a refund.
- However, if you missed the belated return deadline, you cannot file for that year anymore, and the refund claim will be lost.
2. TDS Refund Process:
- Once the return is filed and verified, the Income Tax Department (ITD) will process your refund if you are eligible.
- The refund will be credited to your registered bank account after processing.
3. Interest on TDS Refund:
- If there was excess TDS deducted, you may receive interest at 6% per annum on the refund amount (if it exceeds ₹100 and is delayed).
4. If You Missed the Deadline for Belated Filing:
- You cannot claim a refund if you didn’t file the return before December 31 of the assessment year.
- However, you may submit a condonation request to the Income Tax Department for late filing under Section 119(2)(b), but approval is not guaranteed.
- you may file ITR-U in certain specified cases.