How to claim TDS refunds, know eligibility: A guide to the process

Such refund is issued by the Income Tax department when tax deducted or advance taxes paid exceed actual tax liability

Taxpayers are gearing up to file their Income Tax returns (ITR). In this process, one crucial aspect that often gets overlooked is the tax deducted at source (TDS). If deductions were made from your income throughout the year, it's essential to claim refunds to avoid overpaying taxes.

What is TDS

The government uses TDS to collect tax at the source of income. It applies to various sources of income, including salaries, interest on fixed deposits, professional fees, and more. The idea behind TDS is to ensure that tax is paid as and when income is earned, rather than waiting until the end of the financial year.

What is TDS refund

It is getting back excess tax that has been deducted at source. TDS refund can be granted if the expected investments declared at the beginning of the year by the taxpayer are less than the actual made at the end of the year. If the Income Tax department is late in paying you the TDS refund as applicable, then it must pay you the amount with a simple interest of 6 per cent. This provision comes under Section 244A of the Income Tax Act.

How to claim TDS refund online?

Visit the official website of the Income Tax Department

If you are not already registered, register yourself on the portal

Log in to the portal using your login credentials

Find out the ITR form which is relevant to you and file the ITR

Fill in the details required on the form and submit

E-verify the acknowledgement through the digital signature, net banking account, or an Aadhaar-based one-time password (OTP).

How to verify TDS return status?

Visit the official Income Tax Department e-filing website

Enter your user ID, password, and Captcha code to log in

After logging in, go to the 'E-file' tab

From the dropdown menu, select 'Income Tax Returns' and then 'View Filed Returns'

In the 'View Filed Returns' section, you will see a list of your filed returns

Find the assessment year for which you want to check the status and click on 'See Details' for that year

If your ITR has been processed and a refund is due, you will see a 'refund status' link

Click on this link to view detailed information about your refund.

The screen will display all details, including the date your ITR was filed, the date it was processed, and the date a refund was issued.