Pagar Khata -Staff Payroll & Attendance Management
TDS (Tax Deducted at Source) is the tax that is deducted from the amount before payment to a person. In accordance with the 1961 income tax law, TDS is collected and administered by the Central Board for Direct Taxes (CBDT). The programme is managed by India Revenue Services (IRS) and is part of the Revenue Department. It is also important when an audit is performed. In addition, TDS is becoming important in the following ways:
TDS refund arises when the amount of tax deducted is higher than the amount of tax liability of the person at the end of the financial year. It is calculated after adding all the incomes earned from various sources and determining the tax liability. After the determination of tax liability the TDS is subtracted from it and if TDS is higher than the total tax liability for the financial year, then in that case TDS refund arises.
Also Read: CBDT No TDS on GST Component
Learn how to claim TDS refund in the following steps:
You can claim your TDS refund online by following the below-mentioned steps:
Also Read: TDS Rate Chart For FY 2021-22
How Long Does It Take To Get TDS Refund?
If you have filed your income tax return on time then it usually takes three to six months to receive the refund. It also depends on the completion of e-verification of return.
You can check the status of TDS refund by following the below-mentioned steps:
If you have not received the refund, you can verify the status by downloading and verifying your Form 26AS with your TDS details and income details. You can also contact your jurisdictional income tax officer or Ombudsman Income Tax department with the details including your PAN number, form 16, bank statement, TDS certificate issued by your bank and other documents showing your investments and earnings. Or you can also raise a complaint through an e-filing account.
Interest On TDS Refund
If the TDS is not refunded within the given time period then the income tax department pays simple interest on the refund amount at the rate of 6% applicable as per the provisions of section 244A of the Income Tax Act.
If the TDS refund amount is less than 10% or income tax payable, the Income Tax department need not pay interest on the refund amount. The interest accrues from the first month of the assessment year if the ITR is filed within the due date and from the date of filing of return in any other case.
As per provisions of section 244A of The Income Tax Act,1961," Where a refund of any amount becomes due to the assessee under this Act, he shall be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely :
Provided that no interest shall be payable if the amount of refund is less than ten per cent of the tax as determined under sub-section (1) of section 143 or on regular assessment;
In a case where a refund arises as a result of giving effect to an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264, otherwise than by making a fresh assessment or reassessment, the assessee shall be entitled to receive, in addition to the interest payable under sub-section (1), an additional interest on such amount of refund calculated at the rate of 3% per annum, for the period beginning from the date following the date of expiry of the time allowed under sub-section (5) of section 153 to the date on which the refund is granted.
Also Read: Tax Deducted At Source For Business
Various Refund Status Shown
There are different TDS Refund Statuses. They are mentioned below:
Procedure For Raising Complaint In Case Of Delay
In case you have not received the refund even after applying for ITR or there is delay in the TDS refund then you can file a dispute with your jurisdictional Income tax officer. You need to provide the following details and documents for the same:
If you have income tax liability lower than the income tax deducted by the payer then you can claim your TDS refund by following the procedure mentioned above. You can easily claim the refund of TDS by filing the ITR or submitting form 15G/15H in order to ensure that the payer does not deduct the tax while making the payment.
Also Read: TDS On Salary Under Section 192
How can I know the amount of tax deducted by the payer from my income?
You can check the amount of TDS deducted by viewing the form 26AS from your e-filing account at incometaxindiaefiling.gov.in. You can also ask the payer to furnish the TDS certificate in respect of tax deducted by him.
What should I do if the TDS deducted is not reflected in form 26AS?
In case of TDS credit not being reflected in your Form 26AS, you should contact your payer. It can be due to several reasons like quoting of incorrect PAN of the deductee in the TDS statement file by the payer, non-filing of TDS statement by the payer.
Can I claim my TDS refund even if I have not received a TDS certificate from the deductor?
Yes, you can claim your TDS refund as per the details reflecting in the Form 26AS. In case you do not receive TDS certificate from the deductor you can claim the refund as per the details reflecting in Form 26AS. However, if there is any difference between tax actually deducted and tax credit being reflected in Form 26AS you should contact the deductor and reconcile the difference.
Can I claim TDS refund offline?
No, you cannot apply for TDS refund offline. You need to apply for the refund online on the official site .
Pagar Khata -Staff Payroll & Attendance Management