Many times it may happen that the deductor deducts excess TDS so in that case, the taxpayer can claim excess TDS  refund. Under the Section, 244A provides for levy of interest on excess TDS  refund granted to the taxpayer. If excess TDS deducted at the end of a financial year, a TDS refund arises.

E-Filing TDS

In order to initiate the e-filing process,

  • Login or register yourself on income tax e-filing portal.
  • Once you have registered, you can choose to download the relevant form
  • Upload it once you have completed or you can also fill the details online.
  • Submit the documents PAN, Form 16, interest statements, and details of investments.
  • After that, you will receive an acknowledgment number
  • Check your Income Tax Return status and ITR V acknowledgment to see if it’s reflecting the tax refund correctly.
  • After receiving  ITR V you can check that if excess TDS deducted then you can claim for TDS Refund.
  • Your Tax Return is thereafter processed and an intimation u/s 143(1) is sent to you for the same 
  • The Income Tax department will send the refund by post (cheque) or credit to your bank account

Rate of interest

If the income tax department is late in paying you the tax refund applicable to you then interest for TDS refund so under section 234D is levied @ 0.5% per month or part of the month.

Period of levy of interest

Interest is levied from the date of grant of refund of excess TDS deducted till the date of regular assessment. An assessment made for the first time under section 147 or section 153A  shall also be treated as a regular assessment.

TDS Refund Example:

Rohan is working in a multinational corporation in Bangalore. He got late for submitting his documents for LIC premium exemption under section 80C, therefore, the company deducted extra 10000 as TDS.

Total tax payable by Rohan for the year 2016-17 is 30000

Tax deducted by the employer from Rohan’s salary is 40000.

His total income tax paid for last year turned out to be Rs.30,000 when actually it should have been just Rs.20,000.

From the above information, Rohan is eligible for getting a refund of Rs 10000.

TDS Refund Status

You can check the TDS refund status by the following methods:

  • An acknowledgment e-mail sent to your registered e-mail address
  • By using the PAN card number on the website – https://incometaxindiaefiling.gov.in/
  • By calling CPC Bangalore on 1800-4250-0025 (toll-free number) in order to check the status.

TDS Refund Period

The TDS refund period depends on various factors. It can take anywhere between three to six months to receive the refund if you have filed ITR details timely. It will also depend on completing the e-verification. 

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.