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How to claim your TDS refund online?

Online Legal India LogoBy Online Legal India Published On 21 Dec 2020 Updated On 18 Jan 2023 Category Income Tax

Have you ever paid excess tax on TDS that for what you are already liable to? If 'yes' read more to know about to claim your TDS refund online easily. Here is all that you need to know about TDS, TDS refund, and the steps to claim your money.

What is TDS?

TDS or Tax Deducted at Source is a means to collect an amount of tax on the income, dividends or asset sales, by requiring the payer to deduct tax before paying the balance to the payee i.e. to the tax revenue authority.

According to the Indian Income Tax Act of 1961, income tax must be deducted at the source as per the provisions stated in the Income Tax Act of 1961. Hence, all payment covered under these provisions shall be paid only after deduction of a prescribed percentage of Income Tax. However, it is managed by the CBDT or Central Board for Direct Taxes which is also a part of the Department of Revenue managed by the Indian Revenue Service.

TDS Deductions as per Taxation Rules

Following is the list of deductions liable to deduct TDS:

  • Individuals
  • HUF or Hindu Undivided Family
  • Limited Companies
  • Partnership Firms
  • Body of Individuals
  • Association of Individuals
  • Local Authorities

What is TDS refund?

TDS Return is a quarterly statement of the tax to be submitted at the IT department. Every person making the specified payment as per the Act is liable for TDS deduction. However, it is compulsory for every deductor to submit a TDS return on time.

Process of claiming TDS refund by filing ITR

  • Login into your IT department portal using your ID and password.
  • File your income tax returns by downloading the relevant ITR form. Fill in all the details such as your name, address, your gross salary, TDS (if applicable), refund due, etc.
  • Upon filing ITR, you can find how much refund you're entitled in the refund column. To get the refund amount, acknowledge the ITR-V receipt. ITR-V can be done using a digital signature (DSC), an Aadhaar card based OTP or through net banking account.
  • Once they receive your ITR-V, the taxman at the IT department will cross-check the figure sent by you. If your application is considered to be fit for a refund, the amount will be credited your bank account.

In case there is any discrepancy found between the amount shared by you and the amount calculated by the IT department, your refund claim will be rejected. In either of the cases, you will be notified.

It will take 1 to 4 months to get the refund credited to your bank account.

Penalties for Delay in filing TDS Return

  • A penalty of Rs 200 per day is levied upon the assessee.
  • If an assessee has not filed a return or if has furnished incorrect information. The assessee is liable for penalty levied should not be less than Rs10,000 and more than Rs 1,00,000.

How can we help you?

Visit the portal of Online Legal India™ to know more about TDS returns. Our top-notch CA/CS, who will assist you with the TDS Filling Process online from any corner of India. We are economical and give budgeted services for ones who are willing to start up a company/business or any other kind of organization.


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