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Tax is often deducted at source (TDS) from your salary, interest, or other income. If the amount deducted exceeds your actual tax liability, you are eligible for a refund. Knowing the correct procedure can help you claim your refund without delays. This guide explains how to claim a TDS refund, the documents required, the steps to follow, and how to track your refund status online.
TDS refund refers to the return of excess tax deducted at source (TDS) when the amount of TDS deducted from a taxpayer’s income during a financial year exceeds their actual tax liability. This excess tax is refunded by the government after the taxpayer files their Income Tax Return (ITR) and the return is processed. The refunded amount is deposited straight into the taxpayer’s account.
The following cases where a TDS refund can be claimed are:
If your taxable income is below the basic exemption limit, you can avoid TDS deduction from your salary. If the actual tax payable is less than the TDS, you must file an Income Tax Return (ITR) to claim a TDS refund.
Individuals below 60 can submit Form 15G, and senior citizens aged 60 or above can submit Form 15H at the beginning of the financial year to prevent TDS on interest income. Senior citizens are exempt from TDS on interest up to INR 50,000 per bank. If TDS is deducted despite submitting the form or being eligible for exemption, you can claim a refund by filing your Income Tax Return (ITR).
Having an instant savings account helps ensure quick and seamless refund credits once your return is processed.
To successfully make a TDS claim, you need to ensure that all your information is accurate and supported by the required documents. The main documents include:
You can claim your TDS refund using the following steps:
Step 1: Register or log in on the Income Tax Portal
Step 2: Select the correct ITR form based on your income type, and enter your earnings, applicable deductions, and the TDS already deducted.
Step 3: After filling out the form, submit it online. An acknowledgement will be generated, which acts as proof that the ITR has been successfully filed.
Step 4: After filing the ITR, you are required to E-Verify your ITR, You can do it using:
You can also complete e-verification offline by sending a signed physical copy to the Income Tax Department.
Step 5: Once your ITR has been verified, the Income Tax department will process it and calculate the refund amount. Refunds are usually credited within 1–6 months, depending on the TDS refund time limit set by the Income Tax Department and the accuracy of your details.
You can easily track the status of your TDS refund claim online through the Income Tax Department portal. Follow these steps:
Step 1: Visit the Income Tax e-Filing Portal and navigate to the ‘Refund/Demand Status’ section. Enter the required details and submit to view your refund status.
Step 2: Check Refund Status
The Income Tax Department updates your TDS claim status at various stages of processing. Here’s what each status means:
TDS Status
Meaning / Explanation
Refund Paid
The refund has been processed and credited to your bank account.
No Demand, No Refund
The tax authorities found no excess TDS; no refund is due.
Refund Unpaid
The refund has been approved but not yet credited to your account.
Not Determined
The Income Tax Department has not yet assessed your refund claim.
Refund Determined and Forwarded to Refund Banker
Refund amount calculated and sent to the refund banker for processing.
Demand Determined
A tax demand exists; your refund may be adjusted against it.
Rectification Processed (Variations)
Adjustments made after rectification of the return; may include refund, demand, or no change.
In some cases, your TDS refund may be delayed or fail to reach your bank account. Refunds are issued only to pre-validated bank accounts. If a refund fails, you can request a re-issue through the Income Tax Department’s e-Filing portal.
Steps to Raise a Refund Re-issue Request:
Once submitted, the Income Tax Department will process your request and re-issue the refund to the validated bank account.
Claiming your TDS refund ensures that any excess tax deducted from your income is returned to you. By following the correct steps, providing the required documents, and checking your refund status online, you can receive your refund without delays.
Once the refund is credited, you can make your money work for you by opening a high-interest savings account with DBS Bank. This account offers higher returns while keeping your funds safe and accessible.
Yes. If the TDS deducted exceeds your actual tax liability, the excess amount can be claimed as a refund after filing your Income Tax Return (ITR).
If a refund fails, log in to the Income Tax e-Filing Portal, go to Services, then click Refund Reissue, validate your bank details, and submit the request.
Refunds can fail due to incorrect or unvalidated bank account details, a mismatch in PAN or Form 26AS, or inactive bank accounts.
Refunds are typically credited within 1–6 months from ITR verification, depending on the processing time and the TDS refund time limit prescribed.
Update your bank account or contact details in the e-Filing portal under Profile Settings before filing your ITR or when requesting a refund reissue.
