TDS Refunds

TDS Refunds

What is a TDS Refund?

TDS stands for Tax Deducted at Source. It is a system where a portion of your income tax is deducted upfront by the person or entity paying you (like your employer or bank). However, sometimes, you might pay more tax through TDS than you owe for the year. In this case, you can claim a refund for the excess amount.

How Do I Know If I am Due to get a TDS Refund?

•      Tax Brackets: If your income falls under a lower tax bracket than the one considered while deducting TDS, you might be eligible for a refund.
•       Deductions and Exemptions: If you have claimed deductions or exemptions under sections like 80C (investments) or house rent allowance (HRA), it can reduce your overall tax liability and potentially lead to a refund.

How to Check Your TDS Refund Status:

1.      Visit the Income Tax Department's website: https://www.incometax.gov.in/iec/foportal/

2.      Log in to the e-filing portal: Enter your PAN details and password.

3.      Go to the TDS section: Locate the option for checking your TDS refund status.

4.      Enter the required details: This might include your PAN, assessment year, and other relevant information.

5.      View your status: The website will display your TDS refund status message.

Common Status Messages and Meanings:

•  "No e-filing has been done this year." - You have not filed or verified your Income Tax Return (ITR) yet. File and verify your ITR to proceed.
• "Refund determined and sent out to refund banker." - Your ITR is being processed, and the refund request has been forwarded for processing.
•   "Refund unpaid." - You might have provided an incorrect bank account number. Double-check and update your bank details if necessary.
•   "Refund paid." - The refund has been credited to your linked bank account.
•  "Not determined." - Your application is still under review.
•  "Sent for Refund" - Your application is being processed for a refund.

What if the  Status Shows a Delay?

There can be many reasons for a delay in receiving your TDS refund:

• ITR Processing: Your ITR might still be undergoing processing.
• Income Tax Notices: The Income Tax Department may have issued a notice for verification or clarification on your ITR.
• No Refund Due: After processing your ITR, the department might determine you do not have any refund coming.
• Outstanding Tax: The department might have adjusted your tax liability, resulting in an outstanding tax you must pay.
• Incorrect Bank Details: Providing wrong bank information can delay the refund even after processing.

How to Resolve Delays or Rejections:

•      Check for Notices: Review any notices from the Income Tax Department for further action.
•      Verify Bank Details: Ensure your bank account details are correct in your ITR.
•      Raise a Complaint: If there is an unreasonable delay or rejection, you can file a complaint with the Income Tax Ombudsman. Documents needed may include your PAN, Form 16, TDS certificate, bank statement, and investment/income proofs.

How to Re-issue a TDS Refund:

• Verify Details: Confirm your ITR details before re-issuing and check your TDS refund status.
• Online Portal: Visit the Income Tax Department and log in to your e-filing account.

Request Re-issue: Click on "My Account" -> "Service Request" -> "New Request" -> "Request Category" -> "Refund Reissue".

Enter your bank account details and authenticate the request using Aadhaar OTP and EVC code.