Paying Excess TDS Deduction? Know How To Claim Refund

TDS Claiming Process: The only way to claim TDS refund is to file ITR returns, and individual taxpayers can file returns by July 31 without any late fee or penalty

If you are among those people, who have paid excess tax to the Income Tax department and tax deducted at source (TDS) exceeds your total tax liability in a given financial year, then you can claim a refund by filing income tax returns.

TDS is typically deducted from salary, rent received, return on investment and other such income sources. But in cases where the deduction exceeds the liability of the taxpayers, the difference in the amount is refunded. Those who haven’t yet claimed a pending TDS refund, can also claim it.

Know how to get TDS refund

The only way to claim TDS refund is to file ITR returns and mention the deduction in the returns. Individual taxpayers can file returns by July 31 without any late fee or penalty.

The I-T department will refund the excess amount to bank account mentioned at the time of filing returns.

The other way to claim TDS is by duly submitting Form 15G with your bank with the required information and supporting documents. A lender usually submits TDS online, and a refund request can be placed during the yearly financial declaration.

Here’s how to check refund status

* Firstly, visit the Income Tax Department's e-filing portal

* Then check in to your account by filling the required credentials

* Then select 'View Return / Forms' from the drop-down menu

* Select 'Income Tax Returns' from the drop-down menu

* Here you need to enter the relevant assessment year and click on submit

* Here you need to select the acknowledgement number from the drop-down menu to view the status of your request

You can also check the status of TDS refund through the refund tracking page on the NSDL website. In that case, the individual needs to submit the assessment for which they have claimed the refund and submit PAN details before verifying the captcha details.

Normally, it takes a couple of months for the TDS refund to be processed after it gets sanctioned by the I-T department. Note, that an interest rate of 6 per cent per annum is paid apart from the refund in cases where the refund is to be paid more than 10 per cent of the total tax payable for the fiscal year.

In such cases, you will also receive an intimation, under Section 143 (1), regarding the interest payment.