Tax Deducted at Source (TDS) is the tax deducted by the payer before they make certain payments. These include salaries, bank interest, or rent, to the payee. Sometimes, due to miscalculated deductions or changes in income, you might end up paying more TDS than required. This excess payment becomes eligible for a refund, which the Income Tax Department will process once they review your filed return.
If you have paid excess tax deducted at source or noticed that you’re owed a refund from the Income Tax Department, you might be wondering how to check the status of your TDS refund. This step-by-step guide will walk you through the process, making it simple and easy to follow.
Who can apply for a TDS refund?
Before understanding how to apply for a TDS refund, let us first understand who is eligible for it. Any taxpayer who has paid more TDS than their actual tax liability can apply for a refund. Here are some common cases where TDS refunds apply:
- Salaried Employees: If your employer deducted more TDS from your salary than required
- Fixed Deposits or Savings Account Holders: If banks deducted TDS on interest earned and your taxable income falls below the tax threshold
- Self-employed Individuals: If tax deducted by clients or customers exceeds your calculated tax payable
Applying for a refund is simple. The process starts after you have filed your Income Tax Return (ITR) for the applicable financial year. Herein, the Income Tax Department will assess your claim and issue the refund if eligible. To know more about TDS and TDS returns, you can visit websites like Bajaj Markets.
How long does the TDS refund process take?
The time to process a TDS refund varies. Generally, after submitting your ITR and verifying it, refunds are processed within a few weeks to several months, depending on the complexity of your case. The IT Department usually initiates refunds within 20-45 days of verifying your ITR. However, for large refunds or cases requiring additional verification, the process might take longer. Refunds are usually transferred directly to your bank account via electronic credit. So, ensure that your bank details are recorded accurately on the e-filing portal.
How to check your TDS refund status
You can check the status of your TDS refund online through the income tax e-filing portal:
- Log in to the Income Tax e-Filing Portal
- Visit the official income tax e-filing website https://www.incometax.gov.in
- Log in using your user ID, password, and captcha code
Go to your dashboard
After logging in, you’ll be redirected to your dashboard. Here, you can view various options related to your tax filings.
Access ‘Refund Status’
- On the dashboard, select the ‘e-File’ tab
- Click on ‘Income Tax Returns’
- Next, select the ‘View Filed Returns’ option
Check refund Status
The information on the processing status of your return will be displayed on the screen. If a refund has been issued, it will shown along with the refund amount.
Understanding the TDS refund status messages
The Income Tax Department often sends SMS notifications regarding refund status updates. You may see different status messages, which signify the different stages of your TDS refund. Here are some common ones:
- Refund Processed: It means that your refund has been successfully processed, and the amount should be credited to your bank account soon.
- Refund Issued: This indicates that the Income Tax Department has issued your refund. It may take a few more days to reach your bank account.
- No Demand, No Refund: This means that the department found no discrepancies in your filing, and there is neither extra tax due nor any refund owed.
- Refund Failure: In cases where the refund cannot be processed, check your bank account details on the e-filing portal to ensure they are correct.
- Refund Under Process: This status means that your refund request is still being reviewed, and you may have to wait a bit longer.
What to do if your refund is delayed?
Refund delays are not uncommon. Here’s what you can do if your TDS refund takes longer than expected:
- Verify Bank Details: Ensure that the bank account details in your ITR are correct. Incorrect details can lead to refund delays.
- Check Email and SMS: Sometimes, the Income Tax Department might request additional information via email or SMS.
- Contact the CPC: If you haven’t received your refund within a reasonable time, you can contact the Centralised Processing Centre (CPC) of the Income Tax Department.
- Raise a Grievance: If necessary, you can raise a grievance through the e-filing portal.
Common reasons for TDS refund delays
Here are some possible reasons why there has been a delay in the processing of your TDS return:
- Incorrect Bank Account Details: Ensure that the account number and IFSC code provided are correct.
- Verification Pending: After filing your ITR, you must verify it. Refund processing only begins after verification.
- Unresolved Queries: If the department has any questions about your return, they might pause the refund process until these are cleared.
- High Refund Amounts: Larger refund amounts may undergo additional verification, leading to delays.
Understanding how to check your TDS refund status ensures you stay informed about your tax refund without unnecessary delays. By using the e-filing portal, you can get real-time updates on your refund status, allowing you to track it effortlessly. Be sure to check with your bank and employer on the TDS being deducted, to keep track of your taxes. Check the FDs you have and calculate the TDS that is likely to be deducted from your return. If you are looking to book a new FD or want to check other investment options, consider downloading apps like the Bajaj Markets App. Using these, you can compare multiple options to find an investment that best fits your needs and financial situation.
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