When taxpayers pay more taxes than their actual liability through Tax Deducted at Source (TDS) or advance tax, they can file an Income Tax Return (ITR) to claim a refund. This process ensures that any excess TDS amount is refunded. Tracking the status of the refund is crucial for taxpayers to understand the progress of their refund. Here’s a complete guide to understanding TDS refund status, how to check it, and reasons for delays.
A TDS refund occurs when the TDS amount paid by the taxpayer exceeds their actual tax liability in a financial year. This typically occurs when you consolidate income from multiple sources and recalculate the tax payable. If you determine after filing an ITR that you paid excess TDS, you become eligible for a refund.
If an individual falls under the 5% tax bracket and the payer deducts TDS at 10% on income like fixed deposit interest, the individual can claim a refund for the excess TDS paid.
Additionally, salaried employees can also claim a TDS refund for the amount deducted if they fail to submit investment proofs under Section 80C or rent receipts to avail of the House Rent Allowance (HRA) exemption.
After you file and process the ITR, the Income Tax Department typically credits the refund amount within 3-6 months, depending on the speed of e-verification and their discretion.
Understanding the TDS status helps taxpayers track their refund. Here’s what different TDS statuses mean:
| TDS Status | Meaning |
| No e-filing has been done this year | ITR has not been filed or verified. Re-verify the ITR to update the status. |
| Refund determined and sent out to refund banker | ITR is under process and forwarded to the refund banker. |
| Refund unpaid | Incorrect IFSC code provided. Update the correct bank details to receive the refund. |
| Refund paid | The refund has been successfully credited. |
| Not determined | ITR was submitted recently and is yet to be processed. |
| Sent for Refund | The ITR is processed, and the refund has been forwarded for disbursement. |
If the status is different from these, it may indicate that the application is stuck or facing issues.
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To track the TDS refund status, follow these steps:
The system typically updates the status within 24 hours of submission, processing, and validation. Always have your PAN and Assessment Year handy to check the status effectively.
After you submit your ITR, the system may issue a provisional receipt indicating whether it has accepted or rejected your TDS refund application. Below is an example:
If the system rejects the application, you can click on the token number to check the reason.
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Here are some common reasons for a delay in receiving a TDS refund:
In case of a delayed refund, taxpayers can file a complaint with the Income Tax Ombudsman. Here are the documents required:
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If the system did not process your refund correctly, you can request a reissue. Here’s how:
The system updates the central database through this process and re-issues the refund based on the new details.
A TDS refund provides a way for taxpayers to reclaim excess tax deducted at source. Monitoring your TDS refund status is crucial to ensure timely processing and rectification of errors. By understanding the reasons for delays and knowing how to check your refund status, you can stay on top of your tax refunds and avoid any complications. Always ensure your details are accurate to expedite the process.
Typically, it takes 3-6 months for the refund to be credited, depending on the verification process and processing speed.
You can check your TDS refund status on the official Income Tax Department e-filing portal under the View Filed Status section.
If your refund is rejected, you can click on the token number to check the reason for the rejection and rectify the issue accordingly.
Delays can occur due to reasons such as incorrect bank details, outstanding tax demands, or the ITR still being processed.
Yes, you can apply for a TDS refund reissue by submitting a request through the Income Tax Department’s e-filing portal, ensuring correct bank details are provided.
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