Since technology has now become a part of our everyday lives, it’s now become easier to check the status of your TDS refund via the online method. Just like every other domain, The Income Tax Department has a handy online tool to track your tax refund status. All you need to do is simply enter your PAN (Permanent Account Number) and the relevant Assessment Year, and you can easily monitor the progress of your refund. Once you’ve e-verified your return, the tax department starts processing refunds. Usually, you’ll see the refund in your bank account within 4-5 weeks.
Read on to learn the steps to check TDS refund status and other associated details to make the process easy, quick, and hassle-free.
What is an Income Tax Refund?
An income tax refund refers to the amount of money returned by the income tax department when the taxes paid exceed the actual amount owed. This excess amount can be a result of various factors such as tax deducted at source (TDS), tax collected at source (TCS), advance tax, or self-assessment tax. The income tax department calculates the tax amount by considering all the deductions and exemptions during the assessment process.
The processing of the refund by the tax department begins only after the taxpayer’s return is electronically verified. Normally, it takes around 4-5 weeks for the refund to be deposited into the taxpayer’s account. However, if the refund is not received within this timeframe, the taxpayer should first check for any intimation regarding discrepancies in their income tax return (ITR). Ensure you review email notifications from the IT department regarding the refund. Additionally, taxpayers can track the status of their refund through the e-filing system using the below-mentioned process,
When Can You Claim an Income Tax Refund?
Here is a list of the circumstances under which you can claim an income tax refund.
- Excess TDS Deducted
One common way to check an income tax refund is when an employer deducts more tax than necessary based on estimated investments. If you’ve made investments that reduce your taxable income but haven’t provided proof to your employer in time, you can claim a refund for the excess tax deducted when you file your tax return.
- Excess TDS on Interest Income
Another common way to check TDS refund status is for banks to deduct tax on interest earned from fixed deposits or bonds if it surpasses a certain limit defined by tax laws. You can claim a refund if the deducted amount is more than your actual tax liability.
- Excess Advance Tax Paid
If you’ve paid more advance tax than needed for a financial year based on your self-assessment, you can claim a refund when you file your Income Tax Return (ITR).
- Tax Adjustments by Authorities
Sometimes, income tax officers may add to your declared income during tax proceedings. If these additions are later removed by appeal authorities, you’ll be refunded the excess tax you paid.
- Double Taxation
Last but not least, if your income is taxable in more than one country because you are a citizen of one country but earn income in another, you may face double taxation. India has agreements with many countries to avoid double taxation, and you can claim a refund for any excess tax paid under these circumstances.
Process/Step-by-Step Guide to Check Refund Status
There are two ways to check the TDS refund status. These are as follows:
Via e-Filing Portal:
Here is a step-by-step guide to checking the refund status of your TDS (Tax Deducted at Source) through the e-filing portal:
- Visit the official website of the e-filing portal.
- On the homepage, you will need to log in to your account using your user ID, which is your PAN (Permanent Account Number) and password.
(Note: If you are an individual user and your PAN is not linked with Aadhaar, you may see a pop-up message stating that your PAN is inoperative due to the lack of Aadhaar linkage. To link your PAN with Aadhaar, click on the “Link Now” button. Otherwise, click “Continue.”)
- In the next step, you will need to click on the “E-file” tab and then select “Income Tax Returns” and choose the “View Filed Returns” option.
- This page allows you to check the status of your current filed return and any previous returns.
- Click on “View details” to access more information, including the life cycle of the filed Income Tax Return (ITR).
Via NSDL Portal:
You can follow these steps if you want to check the TDS return status via the NSDL portal. Let’s discuss them in detail!
- In the first step, simply go to the official NSDL website.
- On the website, you’ll find a screen where you can enter your PAN (Permanent Account Number), the Assessment Year (AY) for which you’re seeking the refund and the captcha code provided. Fill in these details accurately.
- Once you are done entering the required details, click on the “Submit” button.
- In the final step, after submitting the information, the website will display the status of your refund. This will inform you whether your refund has been processed and any further details regarding its status.
Potential Reasons Behind the Delay in Getting a TDS Refund
Listed below are the common yet important reasons behind the delay in getting a tax refund.
- Non-verification of Income Tax Return
One of the biggest reasons responsible for the delay in the TDS refund is that if your income tax return is not verified within the specified timeframe (usually within 120 days of filing, or 30 days for returns filed after 1st August 2022), it could lead to delays in processing your refund. The longer you take to verify your return, the longer it may take to receive your refund.
- Manual Filing of Income Tax Return
Another major reason behind the delay in getting the refund is that if you file your income tax return manually instead of electronically (e-filing), the processing of your refund could take longer. E-filing is generally faster and more efficient than manual filing.
- Investigation by the Income Tax Department
Lastly, if the income tax department suspects underreporting of income or any discrepancies in your return, they may scrutinize it more closely. This investigation process can lead to delays in issuing your refund as they verify the accuracy of the information provided.
Frequently Asked Questions
Listed below are the frequently asked questions related to the TDS refund status.
Yes, if your tax refund is delayed, you’ll receive 0.5% interest per month or part of the month on the overdue amount.
You can get a tax refund if you’ve paid more tax than you owe. The refund amount is calculated when you file your Income Tax Return (ITR).
You can claim a tax refund after filing your ITR. The deadline to file returns and claim refunds for any Assessment Year is December 31.
Generally, tax refunds take 30-45 days to reflect in your account after processing.
Yes, you must file an income tax return for the assessment year if you want to claim a refund for any excess tax paid during the financial year.
Yes, you can file revised returns multiple times within one year from the original filing date.
