TDS Refund - How to Check & Claim TDS Refund Status Online?

Tax Deducted at Source (TDS) is a mechanism where a portion of your income, like salary, bank interest, or rent, is deducted as tax before it reaches you. It is mandated by the Income Tax Act 1961 and is handled by the Central Board of Direct Taxes (CBDT) to ensure timely tax collection. If more TDS is deducted than your actual tax liability, you can get a refund by filing your Income Tax Return (ITR) for the financial year. This helps you claim back any extra tax paid.

82,116 Views | Updated on: Jun 27, 2025

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What is a TDS Refund?

A Tax Deduction at Source (TDS) refund is the amount returned to you by the government if more tax has been deducted during the financial year than you are liable to pay. It applies when the total TDS deducted exceeds your final tax liability.

This often happens when your projections related to tax saving investment like life insurance policy premiums differ from your actual investments. For instance, you might have declared that you would invest ₹1 lakh under Section 80C but ended up investing ₹1.5 lakh, leading to a lower tax liability than expected.

In such cases, you can claim a refund by first checking your actual tax liability based on your income tax slab. Comparing this with the total TDS deducted during the year will help determine if there is a refund due. Finally, you will need to file an Income Tax Return (ITR) online so that the Income Tax Department can process it and transfer the excess amount to your account.

TDS Refund Example

To better explain how TDS refund works, here is an example:

Suppose your employer deducts TDS based on your estimated salary of ₹10 lakh. But your actual income turns out to be ₹8 lakh due to a salary change or adjustments in HRA (House Rent Allowance).

Since the TDS was deducted based on an income of ₹10 lakh, it would be higher than your actual tax liability on the income of ₹8 lakh. You can claim the excess tax amount after learning how to get TDS refund on salary.

The refund process will involve simple steps like checking your total income, calculating your actual tax liability based on the correct deductions and filing your ITR online. If the Income Tax Department verifies that the TDS deducted exceeds your final tax liability, the excess amount will be refunded.

When Is the Right Time to Claim TDS Refund?

TDS is deducted in various situations, but can you claim a refund in all of them? See, the standard practice is that if you have had more tax deducted from the source than you actually owe, you are entitled to a refund. Below are some common scenarios where this situation arises, and you can file for a TDS refund:

Case 1: When Your Employer Deducts More than the Income Tax Payable

If your taxable income falls below the basic exemption limit, you can prevent a TDS deduction from your salary. However, if the actual tax payable is less than the TDS deducted, you must file an Income Tax Return (ITR) to claim a TDS refund. While filing the ITR online, you are required to provide your bank account details and IFSC code. These details are necessary for the Income Tax (IT) department to process the TDS refund.

Case 2: When A Bank Has Deducted Tax on Fixed Deposit (FD)

Normally, banks deduct TDS before paying FD interest to individuals. However, if your total income is below the taxable threshold, you would not be liable to pay any tax. But if the bank has still deducted tax, you can take the following steps to recover or prevent it:

Option 1: You can file an ITR to claim a refund for the deducted tax. After filing the return, the Income Tax Department processes your refund and credits the amount back to your bank account.

Option 2: You can submit Form 15G to the bank to declare that your total income is below the taxable limit. This form helps ensure that no tax is deducted from the interest earned on your fixed deposit in the first place.

Case 3: When You Have FD Accounts, Being a Senior Citizen

Senior citizens aged 60 or above are exempt from TDS on interest earned from bank deposits. However, this exemption applies only if the interest on deposits from each bank does not exceed ₹50,000 annually. If your interest income exceeds this threshold but your total income is below the basic exemption limit (after section 80 deductions), you can submit Form 15H to your bank at the beginning of the financial year, indicating that you do not have taxable income. If the bank still deducts tax on your interest income from your FD, you can claim a refund by filing your ITR.

How to Claim TDS Refund?

Filing the TDS claim accurately and on time is crucial to avoid penalties and ensure compliance with tax regulations. Here are the steps to file the TDS return online.

Provide the bank account number, name, and Indian Financial System Code (IFSC) details for successful processing.
If you know that the TDS is payable in any financial year, you must file Form 13 under Section 197 to avail of a lower-income tax deduction benefit.
You need to know how to get a refund of TDS deducted from the bank. For example, if the income tax is less, but the bank has deducted more tax on your fixed deposit, you can claim a refund in two ways.
Declare the income, and the Income Tax department will refund the amount to the bank account.

How to Claim TDS Refund Online in India?

Filing income tax returns is a straightforward step in claiming a Tax Deducted at Source (TDS) refund online. It includes the following steps:

Sign in or sign up on the online e-filing portal of the Income Tax Department, i.e., incometaxindiaefiling.gov.in
Fill in the relevant details in the applicable Income Tax Return (ITR) form

On submission of the ITR, the portal generates an acknowledgment
E-verify the acknowledgment through the digital signature, net banking account, or an Aadhaar-based one-time password (OTP)

What is the TDS Refund Process?

The following TDS refund process ensures that you do not lose money due to over-deduction and can get back the excess amount:

Register on the Income Tax Department’s website to file your TDS online
Next, pre-validate your bank details by entering your bank account number and IFSC code, and nominate the bank account for a refund
You can file your income tax return by downloading the appropriate ITR form after registering
Fill in the necessary details, upload the form, and click the submit button
Upon submission of the ITR, an acknowledgment is generated for the submitted form, which you must e-verify
E-verification can be done using a digital signature, an Aadhaar-based OTP, or your net banking account
However, if you are unable to e-verify the ITR, you can complete the verification process by sending a signed physical copy to the Income Tax Department

How to Check TDS Refund Status?

The government has ensured that you can remain updated with your refund status and are not left in the dark. This maintains transparency in the operations of the Income Tax Department:

The IT Department sends you an acknowledgment and refund processing email to your registered email address. You can review it to ascertain the status of your TDS refund claim.
You can access the Income Tax website using PAN-based credentials to examine the return and track the progress of your refund.

What is the TDS Refund Period?

The Income Tax Department does not set a specific time frame for refunds. However, based on historical data, if you file your ITR on time, it typically takes 1 to 6 months for the refund to be credited to your bank account. The duration also depends on the completion of the e-verification process. Nowadays, once the ITR processing is complete, refunds are generally issued within a month.

Interest on TDS Refund

If the IT Department delays issuing your TDS refund, they must pay you the refund amount with a simple interest of 6% per annum under Section 244A of the Income Tax Act. This interest starts accruing from the first month of the assessment year if the ITR is filed by the due date and from the date of filing if the return is submitted after the due date. Note that no interest will be paid on the TDS refund if the return is filed past the due date.

Additionally, the IT Department will not pay any interest if the TDS refund amount is less than 10% of the total income tax payable. Furthermore, any interest received on the TDS refund is taxable under the head ‘Income from Other Sources.’

Types of Income Tax Refund Status

Your income tax refund status can fall into various categories, each indicating a specific stage of the refund process. Understanding these statuses can help you track your refund and take necessary actions if required. Here are the different types of income tax refund statuses:

Refund Paid

Refund Paid means that the Income Tax Department has processed your refund request and credited the refund amount to your bank account. You should check your bank statement to confirm the receipt of the refund.

No Demand No Refund

No Demand No Refund indicates that, upon processing your ITR, the Income Tax Department has determined that neither a tax demand (amount you owe) nor a refund is due to you.

Refund Unpaid

Refund Unpaid means that although the refund has been processed, it could not be credited to your bank account. This usually happens due to incorrect bank details, account closure, or issues with the bank.

Not Determined

Not Determined signifies that your ITR is still being processed, and the refund status has not yet been finalized. This is a common status that occurs soon after filing the return and before the department completes its assessment.

Refund Determined and Forwarded to the Refund Banker

Refund Determined and Forwarded to the Refund Banker means that the Income Tax Department has processed your refund and sent the details to the authorized refund banker.

Demand Determined

Demand Determined means that the Income Tax Department has found a discrepancy in your ITR, resulting in additional tax liability. Instead of a refund, you now owe money to the department.

Rectification Processed Refund Determined and Sent Out to Refund Banker

Rectification Processed Refund Determined and Sent Out to Refund Banker indicates that after you filed a rectification request to correct errors in your original ITR, the Income Tax Department has re-evaluated and determined that a refund is due.

Rectification Processed and Demand Determined

Rectification Processed and Demand Determined means that after processing your rectification request, the Income Tax Department has concluded that there is a tax demand instead of a refund.

Rectification Processed, No Demand and No Refund

Rectification Processed, No Demand, and No Refund indicates that the Income Tax Department has processed your rectification request and determined that no changes to the original assessment are required.

Documents Required to Claim Income Tax Refund in India

To claim an income tax refund, taxpayers need to submit the following documents:

Income Tax Return (ITR) Form
Form 16/16A
Proof of Investments
Bank Details

Requirements for Claiming Income Tax Refund

While filing taxes might seem daunting, the potential refund at the end of the fiscal year can be a rewarding outcome. To claim an income tax refund successfully, taxpayers must ensure the following:

Accurate Information

All details in the income tax return should be correct and match the supporting documents.

Timely Filing

File the income tax return within the stipulated due date for the assessment year.

Valid Bank Account

Provide the correct bank account details to avoid any issues in receiving the refund.

Reasons for Delay in an Income Tax Refund

Delays in income tax refunds can occur for various reasons, and understanding these factors can help taxpayers navigate the refund process more efficiently. Several reasons may cause a delay in income tax refund processing, including:

Incorrect Bank Account Details
Discrepancies in ITR
High Volume of Returns

How to File Complaint for a Delay in Income Tax or TDS Refund

If your TDS refund is delayed and you have not received any updates, you can file a complaint to get the issue resolved. It can help you track the delay and get your refund processed.

Check the status of your refund on the Income Tax Department’s e-filing portal. This will help you see if the refund is still being processed or if there’s an issue.

Ensure that the bank details you provided during the filing process are correct. Incorrect details can delay the refund.

If the refund status is not updated or you have not received it, you can contact the Income Tax Department’s helpline or customer service for assistance.

You can also file a complaint directly on the Income Tax Department’s website under the “Grievance Redressal” section. Provide your details and refund status for quicker processing.

If you are still not getting a response, you can approach the Income Tax Ombudsman. The Ombudsman handles complaints related to delays and other issues with the Income Tax Department.

What Happens After You Make the TDS Refund Claim?

Upon filing your income tax return online, the IT Department assesses the information provided in the form, especially regarding any TDS refund claim. During the assessment phase, the IT Department sends you an intimation, which falls under Section 143(1), based on the outcome of the processing. This communication from the IT Department may indicate one of the following scenarios:

The IT Department determines that your tax estimation is incorrect, leading to either additional tax liability or a rejection or partial acceptance of your tax estimation. In such cases, you may be required to pay additional tax or receive a revised refund different from the one initially specified.

Your income tax return matches the assessment conducted by the IT Department. Consequently, if applicable, you can receive any TDS refund amount in full. This refund will be credited to the bank account you specified during the filing process.

If the tax department agrees with your tax calculations and accepts your TDS refund claim, they will transfer the excess amount to your bank account. But what if there is a delay in processing your refund? You do not need to worry as the IT Department will pay interest on the delayed refund according to certain conditions. Still, if you do not receive your refund within 3-6 months of the tax assessment, you must take the following steps:

Verify your TDS details by downloading Form 26AS and check if your TDS deductor has filed the returns accurately. Further, ensure the bank account details you provided during filing are correct.
Reach out to the IT Department through their customer service or grievance redressal mechanism to resolve any issues and communicate your concerns.

Final Thoughts

As technology improves, getting your tax refunds is becoming easier and more straightforward. The government is making it simpler for people to track their tax returns, file online, and receive their refunds quickly. You can optimize your tax strategies and efficiently manage your refund claims by staying informed about tax rules and keeping correct records. The key is to be proactive and pay attention to details. With a little effort and knowledge, managing your taxes can become a much less stressful experience.

FAQs on How to Get TDS Refund

If I have paid the excessive tax, will it be refunded?

Yes, if you have paid excessive tax, it will be refunded to you. The excess amount will be refunded by the Income Tax Department after your income tax return has been processed.

How to Request for Refund Reissue (in case of refund failure)?

To request a refund reissue in case of a refund failure, log in to the Income Tax Department’s e-filing portal and navigate to the “Refund Reissue Request” section. Follow the instructions provided to initiate the reissue process.

What are the reasons for refund payment failure?

Refund payment failure can occur for various reasons, such as incorrect bank account details provided in the income tax return, account closure, or discrepancies in the refund amount. Ensuring that your bank details are accurate is essential to avoid refund payment failures.

How many days will TDS be refunded?

The duration of a TDS refund varies depending on factors like the Income Tax Department’s processing time and the accuracy of the information provided in your income tax return. Generally, TDS refunds are processed within 1 to 6 months after filing the return.

Who is eligible for TDS deduction?

TDS deduction applies to individuals and entities making specified payments, such as salaries, interest, rent, commission, etc., above a certain threshold limit. Employers, banks, and other entities deduct TDS when making such payments, as per the provisions of the Income Tax Act.

How do I change my address so that I don’t miss getting the TDS refund via cheque?

To update your address, log in to the Income Tax e-filing portal, go to “Profile Settings,” and update your address in the “Contact Details” section. Alternatively, you can update your address in your PAN or Aadhaar records, as these are linked to your tax filings.

Is there an option to change contact details from what I have provided while filing the ITR?

Yes, you can change your contact details by logging into the Income Tax e-filing portal and updating your profile under “Profile Settings.” Ensure that your updated mobile number and email are verified to receive all important communication.

Will I get a TDS refund even if I have not provided my bank account details in the TDS Certificate or Income Tax Return?

No, providing valid bank account details (account number and IFSC code) is mandatory to receive a TDS refund. You can update your bank details by revising your ITR or by adding the information in the “Profile Settings” section on the e-filing portal.