This article will start with why tds filing is necessary and mandatory, TDS refund. Then we talk about income tax refund and how to find the tds refund status. A stepwise process follows to claim an income tax or a tds refund. Then we explain how the it department issues the tds refund. With this, we will explain how to verify tds refund status. Then we add the different tds refund status. Post this, we state how to check income tax or tds refund status.
According to the Income Tax Act, any company or person must deduct tax at the source if the amount paid exceeds a predefined amount by the tax department. The main purpose of TDS and thereby TDS Refund is to reduce the chance of tax evasion by the recipient of the income.
What is TDS Refund?
TDS (Tax Deducted at Source) refund refers to the process of returning the excess tax deducted by the payer from the income of the recipient. When a person or entity makes certain payments, such as salaries, professional fees, or interest, they are required to deduct a certain percentage of tax at the source and deposit it with the tax authorities. However, in some cases, the tax deducted at the source may be more than the actual tax liability of the recipient. In such instances, the recipient can claim a refund for the excess tax deducted by filing an application with the tax authorities, providing the necessary documents and supporting evidence. The TDS refund process ensures that individuals or businesses are not subjected to higher tax deductions than their actual tax liability, allowing them to receive the rightful amount of tax due.
Who Has To Pay?
Any person making a specified payment mentioned under the Income Tax Act is required to deduct TDS.
TDS Refund Claim Online
Claiming the TDS refund online is a considerably simple process. Following are a few steps you must follow to successfully claim your refund.
- Step 1: You must Visit the official website of the Income Tax Department at incometaxindiaefiling.gov.in.
- Step 2: Register on the portal if you are not yet registered with the tax department.
- Step 3: Log in to the authentic portal using your login details.
- Step 4: Fill out the ITR form with the required information.
- Step 5: e-verify the submitted form using the digital signature and Aadhaar based OTP or net banking account.
Checking TDS Status Using A PAN Card
Here’s how you can check your TDS refund status with the help of your PAN card.
- Visit the official website of the government: www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml
- Enter the verification code.
- Select the ‘Proceed’ button.
- Enter the PAN and TAN (Tax Deduction Account Number) details.
- Select the particular financial year along with the quarter and the type of return.
- Select the button ‘Go.’
- The required details are displayed.
How To Track Your Income Tax Refunds And Their Status?
You can do so with a few easy steps as discussed below for proper TDS TDS Refund filing,
- Step 1: Upload form 16
- Step 2: Verify data.
- Step 3: Finish e-filing.
- One should finish e-filing to get an Income Tax refund.
Understanding The TDS Refund Status
When checking your TDS return status, you may see different terms and phrases. However, it can be challenging for you to determine its exact meaning. Let us help you through. Following are the different TDS refund statuses and their respective meanings.
TDS Status: Not Determined
it Implies that the tax refund is still not processed. Following are different ITR-V or ‘Income Tax Refund – Verification’ Receipt Status for the user reference.
- ITR-V Received: The ITR-V form is received and is being successfully verified.
- ITR-V e-verified: The income tax return has been e-verified (one of the main steps involved for TDS Refund filing)
- E-return for this Assessment Year has been Digitally signed: The income tax return has been filed and verified with the help of the Digital Signature.
- ITR-V not received: The ITR-V form is yet to be e-verified or received by CPC
TDS Status: Refund Paid
The TDS Refund Status means that the Income Tax Department has processed the refund and sent it to the user by either paper cheque or direct debit to the prescribed bank Account Number (which has been registered at the time of filing the return).
One can contact the bank in case the user has opted to ‘Direct debit to the bank account’ and still has not received the TDS refund.
The Assessment Year Not Displayed in Refund / Demand Status
This TDS Refund status means that no income tax e-return has been filed yet for the particular PAN. In other words, this implies that the user may have missed the deadline to e-file the TDS return.
No Demand, No Refund
Suppose the claimer is not eligible for the TDS return as per the calculations of the Income-tax department. This happens when there is a mismatch between users and their TDS Refund details calculations.
If one finds any errors in the return, they can seek correction by filing a rectification return. Comparison and corrections are made under Section 143(1)(a) by the IT department.
Refund Unpaid
This TDS status means the IT department has approved and initiated the refund process, but bank details have an issue.
In such a case, the claimer must visit the Refund Banker’s website and enter your PAN details and assessment year to check the status of the TDS refund.
ITR Processed Refund has been Determined and Sent Out to Refund Banker
This online TDS refund status implies that the Income Tax department has completed the process of calculating the claimer’s return and generated a Refund request.
The details of the TDS refund have been forwarded to the claimants’ refund banker for further processing and disbursal.
The Claimers Refund Banker service will provide the latest status of the TDS return, such as speed post tracking and error messages if you have provided incorrect bank details. You can recheck the TDS refund status after a few days for any updates from the refund banker.
Demand Determined
The meaning of this TDS refund status is that the Income Tax department has rejected your request for a refund. Instead, the department had asked for a demand for outstanding taxes that the claimants needed to pay.
The claimer would receive a notice from the IT department containing information about the reason and the exact amount of outstanding demand. The claimer can verify the notice to understand and clarify the reason behind the difference between the two tax amounts.
TDS Status: Contact Jurisdictional Assessing Officer
This TDS refund status implies that the Income Tax department requires some additional information related to TDS return claimers’ income-tax returns.
One can contact the AO (also known as the Jurisdictional Assessing Officer) for the particular region to provide the required details.
What is the Time Period for TDS Refund?
The time period for TDS (Tax Deducted at Source) refund varies depending on several factors. While the Income Tax Department aims to process and issue refunds promptly, the actual duration can be influenced by factors such as the complexity of the refund claim, the volume of refund requests being processed, the accuracy of taxpayer information, and any additional scrutiny required. In general, taxpayers can expect to receive their TDS refund within a few weeks to a few months from the date of filing the refund claim. However, it is important to note that the process may sometimes take longer, especially if there are any discrepancies or issues that need to be resolved. To ensure a smoother and faster refund process, taxpayers should provide accurate information, file their tax returns on time, and stay updated on the refund status through the online portal or by contacting the tax authorities.
TDS Refund Example
Let’s take an example to understand how TDS (Tax Deducted at Source) refund works:
Suppose Mr. X has earned a total income of Rs. 6,00,000 in the financial year and the TDS deducted by his employer was Rs. 30,000. As per his tax liability, he was required to pay Rs. 15,000 as tax after claiming deductions and exemptions. Thus, the excess TDS amount is Rs. 15,000 (i.e., Rs. 30,000 – Rs. 15,000).
Now, Mr. X can claim a TDS refund of Rs. 15,000 by filing his income tax return and providing the necessary details. After filing the return, he can track the status of his refund through the online portal or by contacting the relevant tax authorities.
If everything is in order and the refund claim is approved, Mr. X can expect to receive the refund amount within a few weeks to a few months. The refund amount will be credited directly to his bank account that is linked with his PAN (Permanent Account Number).
It is important to note that the actual TDS refund process can be influenced by various factors and may sometimes take longer than expected. Therefore, it is recommended to regularly monitor the refund status and contact the tax authorities for any assistance or updates.
Types of Income Tax Refund Status
| Refund Status | Description |
| Return Submitted | This status indicates that the taxpayer has filed their income tax return with the tax authorities. The return is under review and processing. |
| Return Processed | Once the tax authorities have completed the assessment of the income tax return, this status signifies that the return has been processed. The refund amount, if applicable, will be determined and prepared for disbursement. |
| Refund Approved | This status indicates that the refund has been approved by the tax authorities, and the refund amount has been finalized. It is now ready to be issued to the taxpayer. |
| Refund Dispatched | When the refund amount has been transferred or sent to the taxpayer, this status reflects that the refund has been dispatched or credited to the taxpayer’s bank account via electronic funds transfer. |
| Refund Failed | In cases where the tax authorities encounter issues with processing the refund, such as incorrect bank account details or other errors, this status signifies that the refund process has failed, and the taxpayer needs to rectify the issue or contact the tax authorities for further assistance. |
| Refund Cancelled | If the tax authorities find discrepancies or irregularities in the taxpayer’s return or if the refund was issued erroneously, this status may indicate that the refund has been cancelled, and the taxpayer may be required to repay the refund amount. |
| Refund Adjusted | In certain situations, the tax authorities may adjust the refund amount against any outstanding tax dues or liabilities of the taxpayer. This status reflects that the refund has been adjusted accordingly. |
| Refund Under Review | This status suggests that the refund is currently under review by the tax authorities. It could be due to various reasons, such as additional scrutiny, verification of submitted documents, or potential discrepancies in the taxpayer’s return. |
Do These TDS Status Queries Bother You?
In our experience, people are often concerned about some of the basic facts with respect to filing a TDS Refund. Here are the answers to some of the most typical doubts
Who can file a TDS return?
TDS returns can be filed by employers or organisations with a valid Tax Collection and Deduction Account Number (TAN). All the people making specified payments mentioned under the I-T Act are required to deduct tax at source and need to deposit within the stipulated time.
Do You Need a PAN to File a TDS Return?
PAN is a necessary document to pay TDS and file the returns.
What Does ITR-V e-Verified Means?
It is one of the TDS return statuses which implies the Income-tax return has been e-verified.
Bottom Line
We hope that the information discussed above satisfies your concerns regarding the filing of TDS refund. However, navigating the peculiarities might make you feel overwhelmed at some point. You may, however, explore our platform to ease the process. Whether you’re a small scale business or a large-scale enterprise, we at Vakilsearch can guide you in understanding and navigating the legal landscape concerning your business.
We aim to provide you with quick services, catering to your legal and professional requirements. Contact us for more details.
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