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TDS Refund Rules and Process Explained

October 11, 2017

A large number of salaried individuals, as well as businesses, pay TDS in India. However, not all of them claim their TDS refunds even though it’s a great way to earn a lot of money that is rightfully yours. But first things first.

What is TDS?

Short for Tax Deductible at Source, TDS is the tax that’s deducted from your income at the time you earn it. The employer/business deducts a fixed amount from your income before disbursing the final amount. However, if your taxable income is lower after deducting home loan principal payments, PF payments, etc. and falls on a smaller tax slab, then you can claim a TDS refund.

Process for Claiming TDS Refund


There is no particular form to apply for TDS refund. The taxpayer just has to file their income tax return and show the proof of the taxable income and the total TDS that has been deducted.

Once these details have been provided to the IT department (preferably through the e-filing website), they refund the payable amount automatically with the next 6 months.

In some cases, the IT department may also process the refund amount along with a 6% interest.

While traditionally the IT department would disburse the refund amount via cheque, today the same is disbursed via an electronic form. In most cases, the taxpayer gets their refund amount directly into their bank account, the details of which they are required to enter in the e-filing account.

Usually, the TDS refund is credited by the IT department automatically. However, if you don’t get yours even after 6 months, then you can check the status of the refund on the e-filing website of the IT department.

Note: Sometimes TDS refunds are delayed when you have filed your returns in a physical format or have filed via the e-filing website but without submitting the ITR-V form on time.


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