Here's Your Complete Guide on Understanding How to Claim TDS Refund

Here's Your Complete Guide on Understanding How to Claim TDS Refund

TDS or Tax Deducted at Source is usually deducted by a payer before transferring payment to the receiver. But sometimes, there can be some errors in calculation or lack of personal documents, which make miscalculations in the TDS amount. Or you might not even require to pay TDS. And because of these reasons, you will end up paying more than the required taxes. Here you will get all the details for TDS refund status checking.

Scenarios Leading to necessitate a TDS Refund

There are several errors in tax filings that will deduct extra TDS amounts even if you are not eligible for TDS. Listed below are some of the very common reasons for false TDS deductions.

TDS Mismatches

The main reason for any errors in TDS deductions is a mismatch in the details. The details can be anything from the personal details of the transaction members or the TDS rates. Mismatches can also occur due to the entry of a false assessment year or tax slab.

Non-submission of Form 15G/15H to bank

All payments as interests from banks attract TDS deductions. But if your total income from all sources is less than the threshold limit, then you don’t need to pay TDS. For this, you will require to submit a Form, 15G or 15H, depending on your age, to the bank. This Form 15G/15H is a type of self-declaration where you declare that your total income in a year from all sources is less than the taxable limit. If you have not submitted this form, the bank will continue deducting TDS from all your interest returns.

Non-submission of Nil TDS Certificate to employer

Employers also deduct TDS from salaries. If you have a new employer who is unaware that your total income in a year is less than the tax slab, they will also deduct TDS. To avoid this deduction, employees can apply for a Nil TDS Certificate according to Section 197 of the Income Tax Act, 1961. To obtain this certificate, you must submit Form 13 to your nearest Income Tax Officer. Non-submission of this certificate will also cause false TDS deductions requiring a TDS Refund.

How To Apply for A TDS Refund

The best way to apply for a TDS Refund is by filing a claim along with your ITR. But, for this, you must have an account in the Indian Income Tax portal. In ITR, there are options to add a TDS refund. Follow the below steps to file for a TDS refund from the income tax portal.

Step 1 : Sign in to the Income Tax Official Website for ITR (www.incometaxindiaefiling.gov.in)

Step 2 : Complete the ITR form (Skip this step if you don’t need ITR filing)

Step 3 : Fill the extra form for TDS refund respective to your case of TDS deduction

Step 4 : Submit it with the ITR form

Step 5 : Generate an acknowledge form of ITR filing.

Step 6 : Verify the acknowledgment form via digital signature or Aadhaar-based verification.

Completing these steps will do both the jobs of ITR filing and TDS refund in one process. The TDS refund usually takes a few weeks for verification and approval. You can check the TDS refund regularly to know if the amount transfers to your provided bank account.

How To Check TDS Refund Status

There are only two official methods to check the TDS refund status. They are through the ITR and the NSDL portals. Any other methods are not safe and will compromise your confidential data. These methods are easy and more than enough for TDS refund status checking.

Checking TDS Refund Status from ITR Portal

Step 1 : Sign in to the ITR portal through www.incometaxindiaefiling.gov.in with your login credentials

Step 2 : Go to E-file> Income tax return> View filed return.

Step 3 : Click on view details under the relevant assessment year.

Step 4 : If the ITR is processed with refund due, Click on the ‘refund status’ link.

Checking TDS Refund Status from TIN NSDL Portal

Step 1 : Open and login to the TIN NSDL Portal through https://tin.tin.nsdl.com https://tin.tin.nsdl.com/oltas/servlet/RefundStatusTrack

Step 2 : Go to the Refund Status Page

Step 3 : Enter your PAN number

Step 4 : Enter the Assessment Year

Step 5 : Enter the captcha code

Step 4 : You will get the refund status by clicking on the Submit button

Determining the TDS Refund Status

Both the methods to know the TDS refund status will provide you with a status statement. It is necessary to understand this status statement to know the actual position of your refund request Given below are some common TDS refund status statements and their explanation.

Contact Jurisdictional Assessing Officer

This status means that the IT department requires more information about your account. You will have to contact the Assessing Officer in your jurisdiction to know the further steps for a TDS refund.

Demand Determined

This status means that the IT department declined your request for a TDS refund. They must have noticed that you do need to pay extra taxes. So, you must once again verify the accuracy of your calculations.

ITR Proceeds Determined, And Sent to Refund Banker

This status means that the IT department approved your request for a TDS refund. In this case, you must wait for a few more days before the amount transfers to your bank account.

No Demand No Refund

This status means that according to the calculations of the IT department, there are no errors in TDS deduction. So, they don’t need to pay you any TDS refund, and you don’t need to pay any extra taxes. For this status, also you have to cross-verify once more your calculations if you think some errors remain.

No E-filing For This Assessment Year

If this status appears, it means that the IT department has not found any ITR filing for the selected Assessment year. You must verify if your filing was actually submitted or not. And if not, go through the entire process of ITR filing all over again.

Not Determined

This status means that the IT department has not gone through your TDS refund request because your actual TDS amount is not yet determined. For this case, you will have to wait for some more days before the status of your TDS refund request changes.

Rectification Proceeded On, No Demand No Refund

This status means that the IT department accepted your TDS refund application. But because of no errors in the TDS amount, there will not be any TDS refunds.

Rectification Proceeded, Demand Determined

This status means that the IT department approved your TDS refund application. But you have some remaining excess taxes that are payable. You will need to make these payments in the speculated time.

Rectification Proceeds, Refund Determined, Sent Out to Refund Banker

This status means that the IT department approved your TDS refund application. And they decided that you are eligible for a TDS refund. So, they initiated the refund to your bank. You will have to wait for a few more days until the amount transfers into your bank account.

Refund Paid

This status means that the IT department paid the TDS refund to you through your bank. Now you must check the particular bank account to know whether the amount did credit into your account or not.

Refund Unpaid

This status means that the IT department has not refunded your tax money into your bank account. You must check the acknowledgment form to see any errors while filling in the bank details. If you find some errors go to the ITR portal and correct that detail. And if there are no errors, you can submit a Refund Reissue Request.

Conclusions

Always make sure you check your TDS refund status through official sources only. It is crucial to safeguard your personal and financial details. And if you are eligible for a TDS refund and your TDS refund status shows the same, you will receive the payment within a few days. Ensure the bank details in the TDS refund request to avoid any delays in payment after approval of your request.

Disclaimer :

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time’

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Wealth Pro

  • An Individual Linked life cover with Insurance cum Savings Plan.
  • Choose a Variant: The plan offers you two variants to choose from a) Growth Variant b) Legacy variant
  • Grow your wealth further with Wealth booster
  • Multiple Investment Strategies to suit your investment needs
  • Tax benefits

Bharti AXA Life Guaranteed Wealth Pro

  • A non-linked, non-participating individual savings life insurance plan
  • Flexibility to choose the payout structure
  • Multiple income options
  • Option to receive tax free income beginning from the second policy year itself
  • Option to get lifelong income along with life cover till 100 years of age

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance policy
  • The plan offers two options: Without Return of Premium and With Return of Premium
  • Under the Without Return of Premium variant, you have the option between Single Life cover or Joint Life Cover i.e., cover for your spouse under the same policy.
  • Flexibility in policy and premium payment terms