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ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
You can claim the TDS refund online through the Income Tax Department's website. Learn how to do it in this blog.
Taxes are essential to a country’s economic system, and understanding the intricacies of tax deductions is crucial for individuals and businesses alike. Among the various tax-related concepts, TDS (Tax Deducted at Source) plays a significant role in ensuring a smooth flow of tax revenue to the government.
According to our country’s Income Tax Act rules, all Indian nationals earning more than a certain amount of money must pay their share of taxes as per the tax slab rates pre-defined by the government. Although the employer deducts an amount called the Tax Deducted at Source or TDS before the salary is deposited to the employee’s bank, there are TDS exemptions and refund options available when you file your Income Tax Returns (ITR) for the fiscal year to help taxpayers deal with discrepancies
The TDS refund procedure is simple and quick if you have all the relevant paperwork. Moreover, owing to the advancements in digital technologies and the widespread use of the Internet, you can now readily track your TDS refund details and status even in the comfort of your living room. This blog will help you analyze the types and benefits of TDS, types of refund statuses, and interest on TDS refunds. It will also guide you to file a TDS refund.
The advent of digitization has made it easier to claim a TDS refund online. But before understanding the entire process of claiming the refund, it is important to understand when and why you would require to claim a TDS refund.
On several occasions, investment estimates made at the beginning of a fiscal year don’t represent the actual investments achieved towards the end of that fiscal year. Hence, whenever the tax amount collected exceeds the actual tax due, you are eligible to claim a TDS refund. A TDS refund can be claimed and filed for when there is a discrepancy between both the amount of tax deducted at the end of a fiscal year and the income tax you are required to pay for that year.
It is important to know when and how you can refund your TDS. There are several types of TDS refunds; take a look at a few of them:
If your salary is not under the tax bracket and your bank has collected tax on your fixed deposit income, you can claim a TDS refund both online and offline. You can claim this refund when you file an IT return or fill out Form 15.
Once you submit your income tax return, you can correct any discrepancies between both the tax deducted by your company and the actual tax due. When filing your income tax return, you must provide the name of your bank as well as the IFSC number.
Tax deductions on the interest received on fixed deposits are not applied to senior citizens. If you are over 60 years of age and have fixed deposit accounts, you must fill out and send Form 15H to guarantee that your bank does not withhold income tax on your FD interest.
The TDS refund period refers to the time the Income Tax Department takes to process and initiate the refund after processing the income tax return. The refund period may vary depending on various factors, including the accuracy of the return, the volume of refunds to be processed, and the efficiency of the processing systems. In general, the TDS refund period can range from a few weeks to a few months.
To verify your TDS refund status, you can follow the steps mentioned earlier to check the TDS refund status online. You can also contact the Income Tax Department’s customer care helpline or email the Centralized Processing Center (CPC) for inquiries related to your TDS refund.
In some cases, the Income Tax Department may be delayed in processing TDS refunds. If the refund is not issued within a certain time frame, the taxpayer may be entitled to receive interest on the refund amount. As per Section 244A of the Income Tax Act, if the refund is delayed beyond the prescribed time limit (usually three months from the end of the assessment year), the taxpayer is eligible to receive interest at the rate of 0.5% per month or part thereof on the refund amount.
The procedure for requesting a TDS refund is straightforward. If your company has deducted more than your actual tax burden, you can request a TDS refund by following these steps:
The data structure for e-TDS/e-TCS returns is available at
https://www.protean-tinpan.com/services/etds-etcs/etds-rpu.html.
Prepare the e-TDS/e-TCS return in clean text ASCII format with ‘txt’ as the file extension. You can use the Return Preparation Utility provided by Protean (formerly NSDL eGov) or any other third-party software to do this.
Once the file is prepared, verify it using the File Validation Utility (FVU) provided by Protean (formerly NSDL eGov).
If the file has any errors, the FVU will give a report of the errors. Correct the errors and verify the file again using the FVU.
The generated .fvu file can be uploaded or submitted to the TIN-FC https://www.incometax.gov.in/iec/foportal/ website.
In the TDS refund form, the payback sum will appear in the ‘Refund’ row. The reflected total is merely a rough estimate and will not be repaid as the final assessment amount. Once the IT Department has processed your case, the real TDS refund will be determined.
You can check your TDS refund status online through the official website of the ITD (Income Tax Department) of India. Follow these steps:
The Income Tax Department provides different statuses for income tax refunds based on the stage of processing. Here are some common income tax refund statuses:
This status indicates that the Income Tax Department has received your income tax return and is currently processing it.
This status means that the processing of your return has been completed, and the refund amount has been approved for disbursement.
This status indicates that the refund amount has been credited to your bank account.
If there are any issues with the bank account details provided, the refund may fail, and this status will be displayed.
In case the refund could not be credited to the taxpayer’s account, they may request a reissue, and this status indicates that the reissue request has been received by the Income Tax Department.
TDS benefits are not restricted to government and development work for the country; they also include some significant benefits for you in the case of a TDS difference for a refund process and various tax exemptions. By staying informed about TDS and diligently fulfilling our tax obligations, we contribute to the nation’s progress and ensure a robust and prosperous future for ourselves and generations to come. Embrace the knowledge this blog shares and navigate the TDS landscape confidently and efficiently. Together, we can build a financially strong and compliant society that thrives on the principles of transparency and accountability.
1
The Income-tax Law has established a threshold limit for a number of items that are subject to TDS. There is no need to withhold tax at source if the amount spent or paid during the year is below the threshold limit.
2
A payee may approach the payer for non-source-deduction of tax. Still, in order to do so, they must provide the payer with a declaration in Form No. 15G/15H, as appropriate, stating that the tax on the payer’s estimated total income for the prior year, including the income on which tax is to be deducted, will be zero.
3
In this situation, the payee can file an income tax return to request a refund of the entire or excess TDS amount (as applicable).
4
You can ask the payer to give you a TDS certificate for the tax he deducted from you in order to find out the amount of tax that he deducted. Using your e-filing account at https://incometaxindiaefiling.gov.in, you can also check Form 26AS.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
