How to Claim TDS Refund Best Reason of not Refund TDS Amount

Reason of not Refund TDS Amount

Reason of not Refund TDS Amount

Reason of not Refund TDS Amount Tax Deducted at Source (TDS) refers to the amount deducted from an individual’s income, such as salary, interest from bank accounts, rent, etc., before the taxpayer receives it. If the total TDS deducted is greater than the tax liability owed to the government, the taxpayer becomes eligible for a TDS refund. Let’s delve deeper into understanding this concept.

What is TDS Refund?

A TDS refund occurs when the taxes deducted at source (TDS) exceed the actual tax liability calculated for the financial year. This typically happens after consolidating income earned from different sources. you may be eligible for a TDS refund if there was excess TDS deducted from your salary due to reasons like non-submission of investment proofs under section 80C or rent receipts for house rent allowance to your employer. When filing your Income Tax Return (ITR), you would total your income from all sources, determine your tax liability, and subtract the TDS deducted during the financial year. If the TDS exceeds your total tax liability, it indicates that a refund is owed to you by the government.


How to Claim TDS Refund


To claim a TDS refund when the deducted tax doesn’t align with your actual tax liability, follow these steps:

  1. Calculate your taxable income and taxes accurately.
  2. File an Income Tax Return (ITR) with the correct details.
  3. During the ITR filing process, you’ll be asked to provide your bank name and IFSC code. This information facilitates the Income Tax department in refunding the excess tax paid directly to your bank account.
  1. When your employer deducts more tax than your actual income tax liability:
  • If your taxable income falls below the basic exemption limit, you can request your employer to refrain from deducting TDS from your salary.
  • If the TDS deducted exceeds your actual tax payable, you need to file an Income Tax Return (ITR) to claim a TDS refund.
  • When filing your ITR online, ensure to provide your bank account details and IFSC code. The Income Tax (IT) department requires this information to process your TDS refund.
  1. TDS deducted on fixed deposits:
  • If your taxable income is below the basic exemption limit, submit a Form 15G declaration to your bank at the start of the financial year to inform them that you don’t have taxable income. Consequently, no TDS will be deducted from your interest income.
  • If your bank deducts TDS despite your submission of Form 15G, you can claim a refund by filing your ITR.
  1. For senior citizens with FD accounts:
  • Senior citizens aged 60 or above are exempt from TDS on interest earned from bank deposits, provided the interest from each bank stays within Rs 50,000 annually.
  • If your interest income exceeds the mentioned threshold but your total income remains below the basic exemption limit (after section 80 deductions), submit Form 15H to your bank at the beginning of the financial year to declare that you don’t have taxable income.
  • If the bank still deducts TDS from your FD interest income, you can claim a refund by filing your ITR.
How to Claim Your TDS refund online, follow these steps:
  1. Register yourself on the Income Tax department’s website:
  2. Pre-validate your bank details by entering your bank account number and IFSC code, and nominate the bank account for receiving the refund.
  3. After registration, download the relevant Income Tax Return (ITR) form.
  4. Fill in all the required details in the form.
  5. Upload the completed form and click on the submit button.
  6. Once you’ve submitted the ITR, an acknowledgment will be generated for the submitted return.
  7. You must e-verify the acknowledgment. This can be done using a digital signature, an Aadhaar-based OTP, or through your net banking account.
  8. If you’re unable to e-verify the ITR electronically, you can complete the verification process by sending a signed physical copy of the acknowledgment to the Income Tax department.
To check the status of your TDS refund, you can follow these steps:
  1. Review the acknowledgment and refund processing email sent by the Income Tax Department to your registered email address. This email will provide updates on the status of your TDS refund claim.
  2. Log in to the Income Tax website using your PAN-based credentials. Navigate to the relevant section to track the footprints of your return. This will also provide information on the status of your TDS refund.
  3. Visit this link and check the Refund Status Amount 
  4. Alternatively, you can contact the Centralised Processing Center (CPC) in Bangalore by calling their toll-free number: 1800-4250-0025. They can assist you in checking the status of your TDS refund over the phone.
Why TDS refunds may not be processed:
  1. Incorrect bank details provided, including account number, MICR code, IFSC code, or name mismatch.
  2. Bank account provided is not a Current Account or Savings Bank Account.
  3. PAN is not linked to the bank account.
  4. Discrepancy between the name on PAN card and bank account details.
  5. Non-filing or incorrect filing of income tax returns.
What is the TDS Refund period?

The duration for TDS refund issuance is not specifically defined by the department. Typically, based on historical data, if you have filed your Income Tax Return (ITR) on time, it may take approximately 1 to 6 months for the refund to be credited to your bank account. However, the actual timeline can vary depending on factors such as the completion of e-verification. Nowadays, refunds are often issued within a month after the completion of ITR processing.


In conclusion, claiming a TDS refund involves several steps, including ensuring accurate tax deductions, filing an Income Tax Return (ITR), and verifying bank details. Refunds can be claimed online through the Income Tax department’s website, and the status can be checked through email notifications, online portals, or by contacting the CPC Bangalore. While there is no fixed timeframe for TDS refund issuance, it typically takes 1 to 6 months after ITR filing, with recent trends showing faster processing times. Overall, understanding the process and staying updated on refund status can ensure a smooth and timely refund experience. do you have any query Please visit our website

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