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. 

What is TDS Refund? 

In most cases, 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 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 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. 

What is TDS Status?

This table below helps to understand TDS status better –

S.N. Message Displayed Meaning 
‘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 wrong IFSC code to 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. 

How to Know Income Tax Refund Status for TDS?

By following these steps, one can access the TDS statement and track the TDS amount refund status

Invest in elss funds
  • Visit the official IT website

Step 1 – Taxpayers need to login to the ‘E-filing’ portal.

Step 2 – Navigate to TDS option.

Step 3 – Click on ‘View Field Status’.

  • Fill up the required form

Step 1 – Provide essential details by selecting suitable options from the drop-down menu.

Step 2 – Click on ‘View Details’.

  • Check the status 

Step 1 – The TDS return status will appear on screen. 

Step 2 Once uploaded, the status will change into ‘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 online TDS refund status 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. 

TDS Refund Status – Accepted vs Rejected 

In case the TDS return form is accepted, applicants can click on the token number to check 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 
Xxxxxxxxx1 xxxxxxxxxx 26Q 2018-19 Q1 14.07.18 R XXXXXXXX Rejected 
Xxxxxxxxx2 xxxxxxxxxx 26Q 2018-2019 Q1 14.07.18 R XXXXXXXX Accepted 

Reasons for a Delay in Receipt of TDS Refund

Sometimes, the receipt of TDS refund gets delayed even after the verification process is complete. Typically, it is delayed because of these following reasons –

  • Applicants’ Income Tax Return is still being processed.
  • The Income Tax Department has issued a notice against the filed ITR. It can either be a Defective Notice under ITA’s Section 139(9) or a Proposed Adjustment Notice under ITA’s Section 143(1)(a).
  • ITR filed was processed by the IT Department, who determined that there was ‘No Refund Due’.
  • ITR was processed or adjusted by the IT Department, and an outstanding demand was determined. 
  • Incorrect bank details often delay the TDS refund status even after being processed and adjusted on time. 

In 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.

How to Raise a Complaint Against Delay in TDS Return?

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 –

  • PAN
  • Form 16
  • TDS certificate issued by the banking institution
  • Bank Statement 
  • Documents that declare all investments made and earnings accrued in a financial year.

Steps to Apply for TDS Refund Reissue 

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 ‘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 ‘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.