TDS Return Status Check Online – Status of efiling of TDS

Check out this blog for the concept and process of ‘Know Status of My TDS Return’ and other important information related to TDS.

Overview

During the process of TDS or tax deducted at source, tax is deducted by the deductor from the payment being made to the deductee at the time of payment or credit into his account. This is to be done after ascertaining that the deductee is eligible for a tax deduction. The deducted amount is remitted into the account of the Central Government. The deductee from whose income the tax amount has been deducted is entitled to get a credit of the deducted amount on the basis of Form 26AS. This article will inform you regarding every detail of the ‘Know TDS Return Status’ topic. 

Source of Income Tax Deduction

The Tax deducted at the source must be deposited to the credit of the Central Govt. by using the following: 

• Electronic Mode

E-Payment is mandatory for

• • All corporate assesses
  • All assesses other than a company come under the provisions of section 44AB of the Income Tax Act, 1961.

• Physical Mode

  • By furnishing the Challan 281 in the authorized bank branch

Here are the Steps to Check TDS Return Status Online

After the refund application is made, the below-given process should be followed to check the TDS refund status

• Step 1: Visit the website for e-filing
• Step 2: Login using your ID and password
• Step 3: Under my account, click on the Refund/ Demand Status
• Step 4: The below-given details will be shown on your screen
  • Assessment year
  • Status
  • Reason for failure of refund (if any)
  • Mode of payment

The Process to Check the TDS Challan Status

TDS challan is used to deposit the tax with the govt. The status of the TDS challan can be checked by following the below-given steps: 

For Taxpayers

For taxpayers, two options are available to check the status of the TDS challan in the TIN. They are:

1. Status of CIN Challan 

   • Step 1: Visit the website of NSDL
   • Step 2: Select the Challan Identification Number (CIN)
   • Step 3: Enter the relevant details like the BSR Code of the collecting branch, Challan Tender Dt., and other information
   • Step 4: Now, click on the view option. The information will be displayed. You can avail of the following details,
     1. BSR Code
     2. Serial number of the challan
     3. PAN/ TAN
     4. Name of the taxpayer
     5. Date of Challan deposit 
     6. Major Head Code with the description
     7. Date of receipt

  2. TAN Challan Status

• • Step 1: Visit the NSDL official website: https://nsdl.co.in/
  • Step 2: Click on the Challan Enquiry option. Select the TAN-based view
  • Step 3: Enter the TAN number, deposit date, month & year. The following will be displayed on your screen,
    1. Major Head Code & description
    2. Nature of the payment
    3. CIN
    4. Minor Head Code

The Process to Check the TDS Return Status Online

Every taxpayer must file a TDS return to the Income Tax department during each quarter of the financial year. This will show the TDS collected and the tax paid to the income tax department. 

The Process to Track the TDS Status Using a PAN card

• Step 1: Visit the TRACES portal
• Step 2: Enter the verification/ captcha code and click on Proceed
• Step 3: Enter the following credentials:
  1. PAN 
  2. TAN
  3. Quarter financial year
  4. Return type.
• Step 4: Click on the Go button

How to View TDS Return Status Statement Online?

The TDS status via Form 26AS can be checked by using the following methods

• • Step 1: Visit the official website of e-Filing
  • Step 2: Register yourself if you are a new taxpayer. If already registered, enter your User ID and password to log in
  • Step 3: Click on my account 
  • Step 4: Choose View from 26AS
  • Step 5: Select the year and PDF format
  • Step 6: Download and save the file to your system

Note: This password-protected file can be opened by entering your DoB. 

Another way to check the TDS return statement is through the net banking portal. The PAN card must be linked to the net banking portal to check the same.

Reasons for a Delay in Receipt of TDS Return Status

There are instances where the receipt of TDS (Tax Deducted at Source) refund may experience delays even after the verification process has been completed. These delays can occur due to various reasons, including:

1. Ongoing processing of the applicant’s Income Tax Return.
2. Issuance of a notice by the Income Tax Department regarding the filed ITR. This can be in the form of a Defective Notice under Section 139(9) of the Income Tax Act or a Proposed Adjustment Notice under Section 143(1)(a) of the Act.
3. The ITR filed has been processed by the IT Department, and it has been determined that no refund is due.
4. The ITR has been processed or adjusted by the IT Department, and an outstanding tax demand has been identified.
5. Delays caused by incorrect bank details, even if the processing and adjustment of the refund were done in a timely manner.

In cases where the status of the refund reads as ‘Rejected,’ applicants can click on the ‘Token Number’ to obtain details about the rejection. However, it is important for individuals to also familiarize themselves with the procedure for lodging a complaint regarding the delay in receiving the refund.

TDS Refund Status – Accepted vs Rejected

Accepted and Rejected are two possible statuses that can be associated with the TDS (Tax Deducted at Source) refund. Here’s a breakdown of what each status indicates:

Accepted: When the TDS refund status shows as “Accepted,” it means that the refund claim filed by the taxpayer has been successfully processed and accepted by the Income Tax Department. This status indicates that the necessary checks and verifications have been completed, and the refund amount will be disbursed to the taxpayer’s bank account or issued as a refund cheque.

Rejected: If the TDS refund status shows as “Rejected,” it signifies that the refund claim filed by the taxpayer has been declined or not approved by the Income Tax Department. This can happen due to various reasons, such as incorrect information provided, discrepancies in the documents submitted, or non-compliance with the income tax rules and regulations. When the status is rejected, it is important for the taxpayer to review the reasons for rejection and take appropriate steps to rectify any issues or file an appeal if necessary.

It is crucial to regularly check the TDS refund status to stay informed about the progress of the refund claim and take any required actions based on the status displayed.

How to Raise a Complaint Against Delay in TDS Return Status?

If there is a delay in receiving the TDS (Tax Deducted at Source) refund, taxpayers have the option to lodge a complaint. It is important to note that certain documents need to be provided in order to receive the refund amount. To seek further assistance and expedite the resolution, taxpayers can contact the Income Tax Ombudsman and provide the following details:

1. PAN (Permanent Account Number): The taxpayer’s unique identification number assigned by the Income Tax Department.
2. Form 16: This is a certificate issued by the employer or deductor that provides details of the TDS deducted on the taxpayer’s income.
3. TDS certificate issued by the banking institution: If TDS has been deducted by a banking institution, such as on interest income from fixed deposits, a certificate confirming the amount of TDS deducted should be obtained.
4. Bank Statement: A copy of the bank statement that reflects the transactions related to TDS and the refund.
5. Documents substantiating investments and earnings: Any supporting documents that establish the investments made by the taxpayer and the income earned during the financial year should be provided.

By furnishing these documents and reaching out to the Income Tax Ombudsman, taxpayers can seek assistance and resolution for any delays in receiving their TDS refund.

Steps to Apply for TDS Refund Reissue

• Step 1: Visit the official online portal of the Income Tax Department.
• Step 2: Log in to your e-filing account using your PAN details and password.
• Step 3: Click on the ‘My Account’ tab.
• Step 4: From the drop-down menu under ‘My Account’, select ‘Service Request’.
• Step 5: In the ‘Request Type’ section, choose ‘New Request’.
• Step 6: Proceed to the ‘Request Category’ section.
• Step 7: Select the option for ‘Refund Reissue’.
• Step 8: Click on the ‘Submit’ button.
• Step 9: Provide the required details such as your account number, IFSC code, and account type.
• Step 10: Click on ‘Submit’.
• Step 11: Authenticate the TDS refund reissue request using either Aadhaar OTP or EVC (Electronic Verification Code).
• Step 12: Click on ‘Submit’ to finalize the request.

By following these steps and completing the necessary details and authentication, you can raise a request for TDS refund reissue through the Income Tax Department’s online portal.

What are The Different Types of Income Tax Refund Statuses?

When checking the refund status, different messages may appear on the screen. It is important to understand these messages to correctly interpret the information provided. Here are the various status messages and their meanings:

1. Return Submitted: This status indicates that your Income Tax Return has been successfully submitted to the relevant department.
2. Return Verified: The Income Tax Department has verified and approved the return for the excess tax paid.
3. Refund Approved: This status signifies that the department has approved the refund, which will be credited to your designated bank account or a cheque may be issued.
4. Refund Sent: ‘Refund sent’ indicates that the refund has been successfully processed and forwarded to your bank account.
5. Refund Failed: If the status shows ‘Refund failed,’ it means that an error occurred during the processing of the income tax refund. It needs to be resolved for the refund to be completed successfully.
6. Refund Cancelled: This status indicates that the refund request has been declined for various reasons, such as incorrect bank statements or other relevant issues.
7. No Demand, No Refund: This status implies that there is no refund due for the current assessment year, and there is no outstanding demand against your PAN.

If you have filed an income tax refund request, it is advisable to regularly visit the website and check the status to stay updated with the latest information.

How to Pay Income Tax Refund via Direct Credit and Cheque?

Income Tax Refunds can be disbursed in two main modes: direct credit and cheque payment.

Direct Credit:

Direct credit is a fast and convenient method of receiving income tax refunds. To avail this mode, you need to provide accurate bank details during the tax filing process. The refund amount will be directly credited to your bank account through RTGS or NEFT. This is an automated process, and the refund will reflect in your account within the specified time. It is crucial to ensure that you have provided correct bank details to avoid any delays or errors in the process.

Cheque Payment:

If you have not provided bank details during the tax return filing, the tax department typically issues a refund cheque. The cheque will be sent to the address recorded with the income tax department. Unlike direct credit, this process is not automated. To receive the refund, you must deposit the cheque into your bank account. It is essential to ensure that your address is accurately updated in the Income Tax records to avoid any complications during this process.

Both modes of refund payment have their own considerations and requirements, so it is important to provide accurate information and keep your records updated to ensure a smooth and timely refund process.

How is TDS Refund Issued by the IT Department?

When the tax deducted at source (TDS) exceeds your actual tax liability, the process of obtaining a TDS refund from the Income Tax Department involves a strategic approach. Here’s a step-by-step guide on how the refund is issued and what you need to do:

Avoiding Excessive TDS Deduction:

If your employer deducts more than the income tax payable, especially when your taxable income is below the basic exemption limit, you have the option to prevent TDS deduction from your salary. This can be achieved by applying for a lower or Nil TDS certificate using Form 13 as per Section 197.

To initiate this process, you need to approach your jurisdictional Income Tax Officer and submit Form 13, providing details of your income and the reasons for seeking a lower deduction. Once the Nil deduction order is passed under Section 197, you can furnish it to your TDS deductor, ensuring accurate TDS deductions aligned with your actual tax liability.

Learn more about the step-by-step process of filing Form 13 and applying for reduced tax deduction under Section 197 here.

Calculating Income and Taxes for TDS Refund:

When the actual tax payable is not in sync with the deducted TDS, the next step involves computing your taxable income and taxes. This necessitates the filing of your Income Tax Return (ITR), where you can claim a TDS refund.

During the online ITR filing process, you will be prompted to furnish essential details, including your bank name and IFSC code. This information is crucial for the Income Tax Department to seamlessly process and refund the excess tax paid.

Ensure accuracy in providing these details to expedite the TDS refund issuance. The IT department relies on your bank information to transfer the refund directly into your account.

Utilising Form 15G for Tax-Free Interest Income:

When your taxable income is less than the basic exemption limit, taking proactive steps can help you avoid unnecessary TDS deductions on your fixed deposit interest. At the beginning of the financial year, submit a declaration in Form 15G to your bank, notifying them that your income is not subject to taxation. This form serves as a valuable tool to communicate to the bank that no tax (TDS) should be deducted on your interest income.

By promptly submitting Form 15G, you can enjoy the full benefits of your fixed deposit interest without any tax deductions, enhancing your overall returns.

Addressing TDS Deductions Despite Form 15G Submission:

In some cases, despite submitting Form 15G, your bank might still deduct tax (TDS) on your interest income. If you find yourself in this situation, don’t fret—there’s a remedy.

To rectify this, you can claim a refund by filing your Income Tax Return (ITR). Clearly outline the details of your fixed deposit interest income and the TDS deductions made by the bank in your ITR. The filing process enables you to reconcile the discrepancy and ensures that you receive the rightful refund for the excess TDS deducted.

TDS Exemption for Senior Citizens:

Senior citizens enjoy a significant advantage when it comes to TDS on FD interest. Those aged 60 or above are exempt from TDS on interest earned from bank deposits. However, it’s important to note that this exemption applies if the interest from each bank does not exceed ₹ 50,000 annually. This ensures that seniors can maximise their returns without worrying about TDS deductions.

Using Form 15H for Tax Efficiency:

If your interest income surpasses the ₹ 50,000 threshold limit but your total income, after considering section 80 deductions, remains below the basic exemption limit, you have an additional avenue for tax efficiency. At the commencement of the financial year, submit Form 15H to your bank. This form serves as a declaration to notify the bank that you do not have a taxable income, making you eligible for TDS exemption.

Claiming Refund through ITR:

In the event that your bank still deducts TDS on your FD interest despite submitting Form 15H, don’t be disheartened. You can rectify this by claiming a refund through the filing of your Income Tax Return (ITR). Clearly state the details of your FD interest income and the TDS deductions made by the bank in your ITR. This step ensures that you receive the rightful refund for any excess TDS deducted.

How to Claim TDS Refund Online?

• Register on IT Department’s Website:

Begin by registering on the Income Tax Department’s official website: https://incometaxindiaefiling.gov.in/. Ensure accurate details for seamless access to your account.

• Download Relevant ITR Form:

After registration, download the appropriate Income Tax Return (ITR) form based on your financial profile. Select the form that corresponds to your income sources and financial activities.

• Complete Form and Upload:

Fill in all necessary details in the downloaded ITR form. Once completed, upload the form on the portal. Verify that the information provided is accurate to facilitate a smooth filing process.

• Submit and Generate Acknowledgement:

After uploading, submit the ITR form. The system will generate an acknowledgement for the submitted ITR. Keep this acknowledgement handy for the next steps.

• E-Verify the ITR:

E-verify the ITR using one of the available methods – digital signature, Aadhaar-based OTP, or through your net banking account. This step is crucial to authenticate the filed return.

• Alternative Verification Method:

If e-verification is not possible, send a signed physical copy of the ITR to the Income Tax Department. Ensure that the physical copy reaches the department within the stipulated time for successful verification.

Reasons for a Delay in Receipt of TDS Refund:

Delays in receiving a TDS refund can occur due to various reasons. Below are some common causes that you should be aware of:

• Incorrect Bank Details:

Providing inaccurate bank details such as the wrong IFSC code, account number, or other relevant information can result in a delay in receiving the TDS refund. It is crucial to double-check all entries and ensure accurate reporting.

• Discrepancies in TDS Details:

If there are any inconsistencies between the TDS details mentioned in your income tax return and the details submitted by the deductor, it can lead to processing delays and delay in receiving the refund.

• Verification Process:

The income tax department typically conducts a verification process to ensure the accuracy of TDS refund claims. This verification process may take some time, thereby delaying the overall refund procedure.

• Non-Filing of Tax Return:

Failure to file the income tax return correctly for the relevant assessment year can cause delays in the processing and refund of TDS.

• Technical Issues:

Technical glitches or system issues within the Income Tax Department can result in delays in the refund process. In some cases, server downtime can also contribute to the delay.

• Non-Submission of TDS Certificates:

Delays in the TDS refund can also occur if the deductor fails to submit the TDS certificates to the Tax Department. This can cause a delay in the overall process.

It is important to be aware of these potential causes of delay in order to understand and address any issues that may arise during the TDS refund process.

How to Raise a Complaint Against Delay in TDS Return Status?

1. Visit the official E-filing website of the income tax department.
2. Log in to your account using your ID and password.
3. Navigate to the dashboard and locate the “My Account” option.
4. Click on “Service Request” from the available options.
5. Choose the “New Request” option.
6. Select the category “TDS Refund” and provide all the requested details.
7. Clearly state the valid reason for the delay in the refund.
8. Complete the submission process.

Income Tax Collecting Bank Branches

The tax-collecting banks can check the TDS challan status by using the following two options: 

• For Bank Branch

The tax-collecting bank branch can check the total no. of challans deposited and the total amount for every major head code. To avail this, it requires the major head code with description and the branch scroll date.

Other important information: 

• • Challan tender date
  • Challan serial number
  • Name of the taxpayer
  • Amount
  • TAN/ PAN
  • Date of the receipt

• For Nodal Branch

A nodal bank branch can view the following information

• • Scroll date 
  • Major head code and description
  • Name of the taxpayer
  • TDS Amount
  • Number of challans
  • Branches

With each scroll date, it can view –

• • BSR Code
  • Branch scroll number and date
  • Number of challans 
  • Total TDS amount
  • Date of receipt 

Tax Deductor 

A deductor too can also check the status of TRACES by following the below-mentioned steps: 

• View TDS Challan Status Using CIN

1. 1. Step 1: First, register yourself on TRACES. If you have already registered, log in using your TIN and TAN User ID and password
   2. Step 2: Click on the ‘Statements’ or ‘Payment’ option
   3. Step 3: From the drop-down list, select the Challan Status
   4. Step 4: Choose CIN and click on the Period of Payment option
   5. Step 5: Click on Go
   6. Step 6: The result will be displayed.

• View TDS Challan Status Using BIN

1. 1. Step 1: First, Register yourself on TRACES. If you have already registered, log in using your TIN and TAN User ID and password
   2. Step 2: Click on the ‘Statements’ or ‘Payment’ option
   3. Step 3: From the drop-down list, select the Challan Status
   4. Step 4: Choose BIN and click on the Period of Payment option
   5. Step 5: Click on the Go option
   6. Step 6: Enter your BIN details
   7. Step 7: Click on consumption details
   8. Step 8: The details of the TDS challan will be displayed.

Conclusion

We hope this article has been of help to you to know about ‘Know TDS Return Status’. Now we know that TDS aims to collect tax at the source of income from eligible taxpayers. Also, the individual is entitled to receive the amount on the basis of the TDS certificate issued by the deductor. Visit VakilSearch and get expert help filing your TDS return and other related issues.

FAQ’s on TDS Return Status

Helpful Links:

• Where Can I Deposit TDS Online?
• How much is the TDS Payment for Property Purchase?
• Complete details about TDS Deposit rate
• How to Pay TDS on Property?
• When Will My Online TDS Payment Be Reflected in My Account Balance
• How can I get TDS challan?