How to Claim TDS Refund in India – Step-by-Step Guide (2025)
Have you had extra tax deducted from your income and are now wondering how to get it back? You’re not alone! Thousands of taxpayers in India are eligible for a TDS (Tax Deducted at Source) refund every year—but many either delay or don't claim it correctly.
This blog post will walk you through everything you need to know about claiming a TDS refund in India for AY 2025–26—from eligibility and documents to a step-by-step process using the income tax e-filing portal.
---📌 What is TDS?
TDS (Tax Deducted at Source) is the tax deducted by the payer (employer, bank, tenant, etc.) when making certain payments like salary, interest, rent, commission, or professional fees. The deducted amount is deposited to the government under your PAN.
Common TDS deductions include:
- Salary income (by employer)
- Interest on Fixed Deposits (by banks/NBFCs)
- Professional or freelance payments (Section 194J)
- Rent (Section 194I)
- Property sale/purchase (Section 194IA)
✅ When Are You Eligible for a TDS Refund?
You can claim a TDS refund if the total tax deducted from your income is more than your actual tax liability for the year. This often happens when:
- You earned below the taxable limit but still had TDS deducted (e.g., interest income on FD)
- Your employer did not consider your full deductions under Section 80C/80D/24 etc.
- Extra TDS was deducted on freelance or professional income
- TDS deducted on capital gains, but actual tax is lower due to exemptions
Example: Your income for FY 2024–25 is ₹3.5 lakh. But the bank deducted ₹4,000 as TDS on FD interest. Since you are under the ₹5 lakh basic exemption limit, you can claim a full refund of ₹4,000.
---📝 Documents Needed for TDS Refund Claim
- Form 16 (from employer)
- Form 16A (for TDS on other income like FD interest)
- Form 26AS (Annual tax credit statement)
- AIS (Annual Information Statement)
- Bank account details for refund
- PAN and Aadhaar (linked)
Tip: Cross-verify TDS entries on Form 26AS and AIS before filing your ITR.
---🔍 Step-by-Step Guide to Claim TDS Refund (2025)
Step 1: Register/Login on the e-Filing Portal
- Visit https://www.incometax.gov.in
- Login using your PAN and password (or register if new user)
Step 2: Check Form 26AS and AIS
- Go to ‘e-File’ > ‘Income Tax Returns’ > ‘View Form 26AS’
- Check all TDS entries and verify with Form 16/Form 16A
- Also check your AIS (Annual Information Statement)
Step 3: Choose the Right ITR Form
- ITR-1: For salaried individuals (income up to ₹50L)
- ITR-2: If you have capital gains or more than one house
- ITR-4: For freelancers and presumptive income (under 44ADA/44AD)
Step 4: File Your Income Tax Return
- Go to ‘e-File’ > ‘File Income Tax Return’
- Select AY 2025–26 and your ITR form
- Enter your income, deductions, TDS details
- If TDS paid > tax liability, the excess will appear as ‘Refund’
Step 5: Pre-Validate Your Bank Account
- Go to ‘Profile Settings’ > ‘Pre-validate Bank Account’
- Add the account where refund should be credited
- Ensure IFSC and account number are correct
Step 6: Submit and e-Verify Your ITR
- Submit the return and choose an e-Verification method (Aadhaar OTP, Net Banking, etc.)
- You’ll receive an acknowledgment (ITR-V)
Important: ITR must be verified within 30 days to process refund.
---💳 How Will You Receive the TDS Refund?
Once your ITR is processed and refund approved by the Income Tax Department, it is credited directly to your validated bank account.
Refund Status: You can track refund status under “View Returns/Forms > Income Tax Returns” section on the portal or via TIN NSDL Refund Tracker.
---📅 Timeline for TDS Refund in 2025
Once your ITR is filed and verified, refunds are usually processed within:
- 7–45 working days (in most cases)
- Delays may happen during peak filing season (June–September)
⚠️ Common Mistakes to Avoid While Claiming TDS Refund
- ❌ Not e-verifying your ITR
- ❌ Mismatch between 26AS and claimed TDS
- ❌ Entering wrong bank details
- ❌ Using the wrong ITR form
- ❌ Filing after the due date (results in delayed refund)
🎓 Real-Life Example
Ramesh (28), a software engineer in Pune had ₹10,000 TDS deducted by his bank on FD interest. His total income was ₹4.8 lakh, under the basic exemption. He filed ITR-1 for AY 2025–26, claimed all 80C deductions, and submitted the return in July 2025. The refund of ₹10,000 was credited to his SBI account within 30 days.
---📌 FAQs – TDS Refund in India (2025)
Q1. Can I claim TDS refund without filing ITR?
No. Filing ITR is mandatory to claim any excess TDS refund.
Q2. What if my TDS is not showing in 26AS?
Contact the deductor (employer/bank) to file a correction. Without it, your refund may be delayed or rejected.
Q3. Is interest paid on TDS refund?
Yes, if refund is delayed beyond a certain period, the IT Department pays interest under Section 244A.
Q4. Can I revise my ITR after filing if I forgot a refund claim?
Yes, you can revise the return before 31 December 2025 for AY 2025–26.
---📝 Final Thoughts: File Smart, Claim Right
Claiming a TDS refund in India is easy and hassle-free—if done correctly and on time. All you need is accurate income reporting, correct form selection, and matching TDS credits in Form 26AS/AIS. Always pre-validate your bank account and don’t forget to e-verify the return.
Remember: Even if you’re not liable to pay tax, TDS may be deducted. Filing your ITR is the only way to get it back!
💡 Want to avoid this next year? Submit Form 15G/15H to your bank if your income is below the taxable limit.
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