Tax Deducted at Source (TDS) is a mechanism used by the Income Tax Department of India to collect tax at the source of income. While TDS helps streamline tax collection, there are instances when the tax deducted exceeds your actual liability. In such cases, you are eligible for a TDS refund.
This blog walks you through the process of claiming Income-Tax TDS refund and what timelines to expect.
What Is Income tax TDS Refund?
Income tax TDS refund occurs when the total TDS deducted from your income during a financial year is more than your actual tax liability. This often happens in cases where:
- Your income falls below the taxable limit.
- You have multiple sources of income and TDS was deducted at a higher rate.
- You did not claim deductions under sections like 80C, 80D, etc., while calculating advance tax or TDS.
Who Can Claim Income tax TDS Refund?
Any individual or entity whose TDS deduction exceeds their total tax payable for a financial year can claim a refund. This includes:
- Salaried individuals
- Freelancers and consultants
- NRIs
- Companies and partnership firms
How to Claim Income-tax TDS Refund: Step-by-Step Process
1. File Your Income Tax Return (ITR)
The only way to claim a TDS refund is through filing your ITR. Here’s how:
- Visit the Income Tax e-filing portal
- Register or log in using your PAN
- Choose the applicable ITR form (ITR-1, ITR-2, etc.)
- Fill in income details, deductions, and TDS as per Form 26AS or AIS (Annual Information Statement)
- The system will auto-calculate your tax liability and show any excess TDS deducted as a refund
2. Verify Your ITR
Once submitted, your ITR must be verified within 30 days. Verification can be done via:
- Aadhaar OTP
- Net banking
- EVC through a bank account or Demat account
- Sending a signed ITR-V by post to CPC, Bengaluru
3. Refund Processing
After verification, the Income Tax Department will process your return. If everything checks out, the refund will be credited directly to your bank account.
Timelines for Income tax TDS Refund
Stage Timeline
- ITR Filing due by September 15 2025 (for individuals) For Financial Year 2024-25
- ITR Processing by CPC Typically within 15–45 days of verification
- Refund Credit to Bank A/C Within 7–10 days after processing (if no issues)
Note: Delays can occur due to mismatched details, pending verifications, or manual scrutiny.
How to Check Refund Status
You can track your refund in two ways:
1. Through the Income Tax e-filing portal:
Go to ‘My Account’ > ‘Refund/Demand Status’
2. Via NSDL website:
Visit https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Enter PAN, assessment year, and captcha code
Tips to Ensure Smooth Refund Process
- File ITR before the deadline
- Match TDS details with Form 26AS/AIS
- Ensure correct bank account and PAN details
- Complete e-verification promptly
