Typically, taxpayers file for an Income Tax Return if they had paid a higher tax in the last financial year. Filing the ITR enables taxpayers to claim a refund amount. Usually, ITR is filed when the tax paid in advance or TDS exceeds one’s total tax liability. Individuals gain valuable insight into the development of their TDS refund status by verifying the same online.
In most cases, a TDS refund occurs when the taxes paid in the form of TDS is more than what is payable in a given fiscal year. Usually, it is computed after earnings generated from multiple sources are consolidated.
A TDS refund is filed when the taxes deducted at the source are greater than the actual amount payable calculated for the Financial Year. It is computed after consolidating income earned from various sources. It is common knowledge that taxpayers are categorised under various tax slabs according to their income.
Based on one’s slab, a taxpayer is required to file Income Tax Returns.
For instance, taxpayers who come under the tax bracket of 5% are entitled to claim TDS refund against the additional amount paid as TDS on, say interest on fixed deposits or investments.
Likewise, they also have the option to claim a refund of excess TDS on the salary that was deducted due to non-submission of proof of investment under 80C or rent receipts to claim exemption of house rent allowance.
Once ITR is filed, it takes 3-6 months for the TDS refund amount to be credited into the taxpayer’s linked bank account. It must be noted that the TDS refund time taken to refund the excess TDS amount depends on the swiftness of e-verification.
Based on the Income Tax Department’s discretion, it will be decided whether excess TDS on income will be refunded to the taxpayer or not.
This table below helps to understand TDS status better –
||‘No e-filing has been done this year.’||It occurs when ITR is not filed or verified. Taxpayers need to re-verify ITR to change their status.|
||‘Refund determined and sent out to refund banker.’||It signifies that ITR is under process and the application in question has been forwarded to the refund banker.|
||‘Refund unpaid.’||This message signifies that the taxpayer has shared the wrong IFSC code with the IT department.|
||‘Refund paid.’||It indicates that the refund has been paid.|
||‘Not determined.’||The application in question was submitted in the last month and is yet to be processed.|
||‘Sent for Refund’||It will occur if the application had been sent over a month ago and is processed for a refund.|
In case the status is different than these, it would suggest that the TDS refund application is stuck.
By following these steps, one can access the TDS statement and track the TDS amount refund status–
Step 1 – Taxpayers need to log in to the ‘E-filing’ portal.
Step 2 – Navigate to the TDS option.
Step 3 – Click on ‘View Field Status’.
Step 1 – Provide essential details by selecting suitable options from the drop-down menu.
Step 2 – Click on ‘View Details’.
Step 1 – The TDS return status will appear on the screen.
Step 2 – Once uploaded, the status will change to ‘Updated’.
Step 3 – The uploaded file is processed and validated.
Step 4 – Post validation the file’s status is shared.
Typically, this status is shared within 24 hours of the file being uploaded, processed, and validated. The TDS refund process displayed on the system will inform individuals whether or not they will receive a refund on TDS paid. It must be noted that taxpayers will be required to provide PAN and Assessment Year to view their status successfully.
In case the TDS return form is accepted, applicants can click on the token number to check the TDS refund status. Subsequently, they can proceed to download a provisional receipt.
Typically, the provisional receipt of acceptance and rejection appears like this –
|S.N.||Transaction Number||TAN||Form name||Fiscal Year||Quarter||Date of Filing||Type of Upload||Token Number||Status of the Refund|
Sometimes, the receipt of TDS refund gets delayed even after the verification process is complete. Typically, it is delayed because of the following reasons –
In the case of reads ‘Rejected’ applicants can click ‘Token Number’ to find out details about the rejection. Nevertheless, individuals must also find out the procedure to raise a complaint against the delay in receiving the refund.
In case of delay in receiving TDS refund, taxpayers can raise a complaint. It must be noted that they need to furnish a set of documents to receive the refund amount. For further assistance and prompt solution, they can reach out to Income Tax Ombudsman and provide these following details –
Taxpayers also have the option to apply for TDS refund reissue. However, before proceeding with it, they must find out if the ITR details are correct or not and also check the TDS Refund Status.
By following these steps, one can raise a request for TDS refund reissue –
Step 1 – Visit Income Tax Department’s online portal.
Step 2 – Login to the e-filing account by providing PAN details and password.
Step 3 – Click the ‘My Account’ tab.
Step 4 – Select ‘Service Request’ from the drop-down menu of ‘My Account’.
Step 5 – Navigate to ‘Request Type’.
Step 6 – Select ‘New Request’.
Step 7 – Go to ‘Request Category’.
Step 8 – Select the ‘Refund Reissue’ option.
Step 9 – Click on the ‘Submit’ button.
Step 10 – Enter details like Account number, IFSC code, and Account Type.
Step 11 – Click ‘Submit’.
Step 12 – Using Aadhaar OTP and EVC code, authenticate the TDS refund re-issue request.
Step 13 – Click on ‘Submit’.
It must be noted that any changes to this section will be updated in the centralised database of TIN. Consequently, TDS refund amount will be readjusted and re-issued based on the updated record. Nevertheless, before proceeding with any such process individuals must check their TDS refund status.
You will be eligible if you have paid a tax amount over and above the actual tax that is payable. The refund will be calculated when you file ITR.
Yes, if your income tax refund is delayed, you will receive 0.5% each month/part of the month’s interest on the amount owed.
The income tax refund will be calculated based on the amount of tax that you have paid in excess. This is not considered income and is therefore not taxable. However, the interest you earn on your tax refund is taxable.
Within the one-year limit, the returns can be filed multiple times.
Yes, if you want to claim an income tax refund for any excess tax paid during a fiscal year, you must file an income tax return for the assessment year.