Uncertain About TDS Refunds? TaxBuddy Calls Clear It Instantly
- PRITI SIRDESHMUKH
- Aug 22
- 9 min read
A Tax Deducted at Source (TDS) refund is a common topic among taxpayers, especially during tax filing season. TDS is a method where taxes are deducted at the source of income, such as salary, interest, rent, or other payments. If the amount of tax deducted exceeds the taxpayer's actual liability, they are eligible to claim a TDS refund. Understanding the TDS refund process is crucial for ensuring that you don't miss out on the funds you are entitled to. Let us explore what a TDS refund is, who can claim it, the process to claim it, and the latest updates for the financial year 2024-25.
Table of Contents
What Is a TDS Refund?
A TDS refund occurs when the amount of tax deducted from your income is greater than your actual tax liability. TDS is deducted by employers, banks, or other payers at the time of making payments like salary, interest, dividends, etc. The deducted amount is then deposited with the Income Tax Department. However, since TDS is an advance payment of taxes, it might not always match the exact amount you owe. In cases where the TDS deduction exceeds the actual tax liability, you are eligible for a refund after filing your Income Tax Return (ITR).
Who Can Claim a TDS Refund?
Anyone who has had TDS deducted from their income and has overpaid in relation to their actual tax liability is eligible to claim a TDS refund. This applies to:
Salaried individuals: Employees whose tax has been deducted by the employer.
Freelancers: Self-employed individuals or professionals who receive payments with TDS deductions.
Pensioners: Individuals receiving pension and having TDS deducted on pension income.
Investors: People earning income from interest or dividends from banks or financial institutions that deduct TDS.
Other income recipients: This includes rental income, payments from contractors, etc., where TDS is deducted at source.
If you find that the total TDS deducted is higher than your actual tax liability, you can claim the refund after filing your tax returns.
How to Claim a TDS Refund (2025 Step-by-Step Process)
Claiming a TDS refund involves filing your Income Tax Return (ITR) accurately. Here’s a detailed step-by-step process to ensure you claim your TDS refund correctly:
Gather TDS Certificates: Ensure you have all TDS certificates (Form 16, Form 16A, Form 26AS) to confirm the TDS deducted and deposited with the government. Form 26AS will show all TDS deductions made on your behalf during the financial year.
Check Your Form 26AS: Log in to the Income Tax Department’s e-filing portal and download your Form 26AS. This form provides a consolidated view of the TDS deducted from your income by various parties like employers, banks, etc. Verify that the TDS shown in Form 26AS matches the TDS deducted as per the respective certificates.
File Your ITR: Complete and file your ITR online using the appropriate ITR form (usually ITR-1 for salaried individuals and ITR-4 for professionals). Make sure you input the correct TDS details as shown in your Form 26AS into the ITR. TaxBuddy, an AI-driven platform, can help ensure the accuracy of your filing.
Claim Refund in the ITR: While filling out your ITR, ensure that the TDS details match your Form 26AS. If the total TDS deducted exceeds your tax liability, the system will automatically calculate the refund you are eligible to receive.
Submit ITR and Track Refund: After filing your ITR, submit it and keep track of your refund status through the Income Tax Department’s portal or via TaxBuddy. The refund is usually credited to your bank account, which you will have mentioned in the ITR.
Wait for Processing: The Income Tax Department will process your return and verify the details. If everything is in order, they will initiate the refund, which will be credited directly to your bank account.
New Updates for 2025: TDS Refunds after Deadline
As per the latest updates for the year 2025, taxpayers can still claim a TDS refund even if they file their ITR after the deadline, but they may incur penalties or interest for late filing. The deadline for filing returns has been extended, giving taxpayers more time to ensure accurate filing. However, it’s important to note that if you miss the deadline, you might face delays in the processing of your refund. Therefore, it’s advisable to file your return as soon as possible to avoid complications and ensure a quicker refund.
Important Timelines (FY 2024-25)
ITR Filing Deadline: The deadline for filing your Income Tax Return has been extended to September 15, 2025, for non-audit assessees. For businesses that require audit, the deadline is October 31, 2025.
Belated Returns: If you miss the regular deadline, you can file a belated return until December 31, 2025. However, penalties and interest will be charged for the late filing, which could delay your refund.
Refund Processing: The Income Tax Department processes refunds on a first-come, first-served basis. Therefore, it is best to file your return as soon as possible to ensure faster processing of your TDS refund.
Refund for Property Transactions/Other Specifics
In case you’ve had TDS deducted on property transactions (like sale of property) or any other specific income types (like professional fees), the refund process remains the same. However, it is essential to check that the correct TDS rates were applied, and the right details are reflected in your Form 26AS. For property transactions, particularly, make sure that the capital gains are accurately reported in your ITR. Any discrepancy could delay the refund or cause issues during verification.
Common Reasons for Delay or Non-Receipt
Several reasons could cause delays in receiving your TDS refund:
Mismatch in TDS Data: If the TDS deducted and the TDS credit reflected in your Form 26AS do not match, it can delay the refund process. Ensure your employer or the deductor has uploaded the correct details.
Late Filing: Filing your return after the due date can delay your refund. Additionally, penalties and interest will be charged.
Incomplete ITR Filing: If you miss out on any mandatory fields in the ITR, like bank details, or fail to declare other incomes, your refund may be delayed.
Refund Discrepancies: If there is a discrepancy in the amount of TDS refunded versus what you claim, the department may ask for additional verification.
Conclusion
TDS refunds are a significant part of the tax filing process, and understanding how to claim them can help ensure that you get back the excess tax paid. The process involves ensuring that all TDS credits are accurately reflected in your ITR, filing your return on time, and verifying that all relevant documentation is in place. With the extended deadline for FY 2024-25, taxpayers now have more time to get their filings correct and claim any TDS refunds due. Platforms like TaxBuddy help streamline this process, making it easier to track and ensure accurate filings for faster refunds. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1: Does TaxBuddy help with TDS verification during ITR filing?
Yes, TaxBuddy assists in verifying your TDS (Tax Deducted at Source) credits by cross-referencing your Form 26AS. Form 26AS is the annual tax statement that records all the TDS deductions made on your income. TaxBuddy checks if these deductions match the amounts mentioned in your ITR, ensuring that your TDS is accurately accounted for. This step is crucial in avoiding discrepancies, which could delay your refund or lead to a mismatch, requiring further clarification from the tax department.
Q2: Can I file a TDS refund claim after the ITR deadline?
Yes, you can file a TDS refund claim after the ITR deadline by submitting a belated return before December 31, 2025, for FY 2024-25 (Assessment Year 2025-26). However, filing after the deadline will incur penalties and interest on unpaid taxes. Additionally, your refund processing will be delayed as belated returns are processed after those filed on time. To avoid unnecessary delays, it's best to file within the stipulated deadlines.
Q3: How long does it take to receive a TDS refund?
Once your Income Tax Return (ITR) is processed and your refund claim is approved, the refund is typically credited to your bank account within 20-45 days. The timeline depends on the tax department’s processing speed and the complexity of your return. Delays in the system or discrepancies in the filed data can lead to a longer processing time.
Q4: What documents are required to claim a TDS refund?
To claim a TDS refund, you will need several important documents, including:
TDS certificates (Form 16, Form 16A): These certificates show the amount of tax that has been deducted at source.
Form 26AS: This document is your consolidated tax statement, reflecting the TDS deductions made during the year.
Bank statements, salary slips, or other income-related documents: To support your income claims and deductions.
Make sure to keep these documents ready for filing to ensure an accurate and smooth refund process.
Q5: How do I check the status of my TDS refund?
You can track the status of your TDS refund by logging into the Income Tax Department’s e-filing portal. You’ll need your PAN (Permanent Account Number) and the assessment year details. The portal provides real-time updates on your refund status, helping you monitor whether it has been processed, approved, or is still under review.
Q6: What happens if I don’t claim my TDS refund?
If you fail to claim your TDS refund, the excess tax deducted at source will remain with the Income Tax Department. To get the refund, you must file your ITR, ensuring that all the TDS credits are properly reflected in your tax filing. If you don’t file within the prescribed timelines, the refund may be delayed, and penalties could apply for late filing of returns.
Q7: Can I claim a TDS refund for taxes deducted on my rental income?
Yes, you can claim a TDS refund on rental income if the tax deducted at source exceeds your actual tax liability. If the tax deducted from your rental income is more than what you owe, filing an ITR is necessary to get the excess amount refunded. Ensure that the correct TDS deductions are reflected in your Form 26AS before filing your return to avoid discrepancies.
Q8: Can I file my TDS refund claim without an accountant?
Yes, you can file your TDS refund claim without an accountant. The Income Tax Department’s e-filing portal allows you to directly file your TDS refund claim. However, if you are unsure about the process or have a complex case, platforms like TaxBuddy can assist you. TaxBuddy offers guidance, ensuring that your TDS credits are accurately reflected and that your filing is error-free, even if you choose to file independently.
Q9: Will there be penalties if I claim a TDS refund late?
There are no direct penalties for claiming a TDS refund late; however, if you miss the filing deadline for ITR submission, penalties and interest may apply. While you won’t incur a penalty for filing your TDS refund claim late, your refund processing will be delayed, and the excess TDS paid will remain with the Income Tax Department until you file your return and claim it. To avoid complications, ensure you file your ITR within the prescribed timelines.
Q10: Can TDS refunds be denied?
Yes, TDS refunds can be denied if there are discrepancies in the data provided or if the income declared in the return doesn’t match the TDS credits reported in Form 26AS. Mismatches or incorrect claims can lead to the tax department rejecting the refund request. If there’s an issue, the department may issue a notice asking for further clarification. It’s essential to ensure that your TDS credits match the details in your ITR to avoid rejection.
Q11: Can I claim TDS refund for taxes deducted on my freelance income?
Yes, freelancers whose TDS has been deducted on their income can claim a refund if the tax deducted is higher than their actual tax liability. Freelancers typically receive Form 16A, showing the TDS deductions made by their clients. To claim a refund, you need to file an ITR, ensuring that the TDS is properly accounted for and exceeds your total tax liability.
Q12: What should I do if there is a discrepancy in my TDS credits?
If you notice a discrepancy in your TDS credits, the first step is to contact the deductor (e.g., your employer, bank, or client) to correct the TDS details. The deductor should provide you with the updated TDS certificates or correct the details with the Income Tax Department. If the issue isn’t resolved promptly, you can file a revised return after verifying the correct TDS information. It's important to ensure the TDS credits are accurately reflected to avoid delays in your refund.
Q13: How can I schedule a call with TaxBuddy to clarify my TDS refund queries?
You can easily schedule a call with a TaxBuddy expert through their platform or mobile app. Just select a convenient date and time that fits your schedule, provide some basic details about your TDS concerns, and one of their tax advisors will call you to provide personalized, instant assistance on your refund-related questions.
Q14: Is the scheduled call with TaxBuddy experts for TDS refund queries free, and how long does the session typically last?
Yes, scheduling a call with TaxBuddy for TDS refund clarifications is generally free, especially for initial consultation. The duration of the call depends on the complexity of your query, but most sessions last between 15 to 30 minutes, ensuring you get clear and thorough answers without any hassle.
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