📌 Introduction

Many taxpayers, especially salaried individuals, senior citizens, and freelancers, often end up paying more tax than necessary through TDS (Tax Deducted at Source). The good news? If your total tax liability is less than the TDS already deducted, the excess amount can be claimed as a TDS refund while filing your ITR.

In this detailed guide by Kumar Ravi & Company, we’ll explain:

✅ What is TDS refund?

✅ When and why you're eligible

✅ Step-by-step process to claim it

✅ Realistic example

✅ How to track your refund status

🔍 What is a TDS Refund?

TDS is the tax deducted by the payer (like banks, employers, clients) before giving you income. If your actual tax liability is less than the total TDS deducted, the extra tax is refundable.

The Income Tax Department allows you to claim this refund by filing your Income Tax Return (ITR).

✅ Who Can Claim a TDS Refund?

You can claim a TDS refund if:

🧾 Your income is below the taxable limit, but TDS was still deducted.

💸 You are eligible for deductions (like 80C, 80D) that reduce your taxable income.

🧮 Your employer/bank deducted excess TDS.

📊 You have FD interest income, and banks deducted 10% TDS even if your total income is not taxable.

👨‍💼 Freelancers or consultants received payment after 10% TDS deduction, but total income is not that high.

🧾 Documents Required to Claim TDS Refund

1. PAN (linked to Aadhaar)

2. Form 16 / 16A (issued by employer or bank)

3. Form 26AS (Tax Credit Statement)

4. AIS (Annual Information Statement)

5. Bank account details with IFSC (for receiving refund)

6. Investment proofs (if claiming deductions under 80C, 80D, etc.)

📥 Step-by-Step: How to Claim TDS Refund in Your ITR

1. Login to Income Tax Portal

Go to https://www.incometax.gov.in

Login using PAN and OTP

2. Check TDS Entries in 26AS & AIS

Download Form 26AS and AIS from the portal.

Match the TDS entries with your income documents.

If TDS is missing, request the deductor to revise their TDS return.

3. Select the Correct ITR Form

ITR-1 for salaried individuals with one house property

ITR-4 for freelancers under presumptive scheme

4. Enter Income & TDS Details

Fill in all sources of income (salary, FD interest, rental income, freelance)

Go to the TDS Schedule, and mention TDS as per Form 26AS.

5. Final Tax Computation

After deductions and exemptions, if your TDS > Tax Payable, the excess will be your refund.

6. E-Verify Your Return

Use Aadhaar OTP, Net Banking, or Bank Account EVC

📌 Refund is processed only after e-verification

💡 Real-Life Scenario

Name: Priya Sharma

Age: 28

Occupation: Salaried Employee + Interest from FDs

FY 2024-25 Income:

Salary (after Standard Deduction): ₹5,60,000

FD Interest: ₹60,000 (TDS @ 10% = ₹6,000 deducted by bank)

Total Income = ₹6,20,000

Taxable Income = ₹6,20,000

Tax Payable under New Regime = ₹0

TDS Already Deducted = ₹6,000 (Bank)

✅ Since TDS > Tax Payable, Priya can claim ₹6,000 as TDS refund

✅ Refund will be credited to her bank account after return is processed and verified

🔄 How to Track TDS Refund Status

1. Go to https://tin.tin.nsdl.com/oltas/refundstatuslogin.html

2. Enter your PAN and Assessment Year

3. Click “Submit” to see refund status

Or

Login to incometax.gov.in

Go to ‘View Filed Returns’ > View Details

Check “Refund Status” and processing stage

🕒 How Long Does the Refund Take?

⏳ Usually, refund is issued within 20 to 45 days after ITR verification.

💸 If there’s a delay, interest is paid under Section 244A of the Income Tax Act.

🛡️ Expert Tips from Kumar Ravi & Company

• Double-check Form 26AS before claiming refund

• Always e-verify ITR to activate refund processing

• Avoid common errors like mismatched income, incorrect IFSC or bank account

• File ITR before due date (15th September 2025) to avoid delay in refunds

📣 Conclusion: Don’t Let Your Money Stay with the Government

A TDS refund is your right if extra tax was deducted. Timely and correct filing ensures faster processing and peace of mind. At Kumar Ravi & Company, we offer professional ITR filing services, review Form 26AS, and help claim 100% eligible refunds — without errors.

📞 Need help with your ITR or refund?