TDS is required to be deducted at the time of making any payment and the TDS so deducted is deposited with the Income Tax Department as tax deducted on behalf of the person to whom the payment is being made.
- Recommended Read: Rate of TDS to be deducted while making payments
The TDS so deducted is allowed to be claimed as a credit from the Income Tax Payable of the person whose TDS has been deducted. The Balance amount of tax shall be tax payable/tds refundable. This can be explained with the help of the following example:-
|
Total Tax Payable by Mr A for the year 2013-14* |
50000 |
|
|
(Less) |
TDS deducted by Mr B while making payment to Mr A |
-20000 |
|
(Less) |
TDS deducted by Mr C while making payment to Mr A |
-15000 |
|
Balance Tax Payable by Mr A |
15000 |
*The total tax payable would be the self assessment tax computed by the taxpayer himself by applying the income tax slab rates on his total income.
The Balance shall be the tax payable by Mr A which he would be required to pay before the due date of payment of income tax.
However, in case the TDS Deducted is more than the total tax payable, the excess amount deducted is allowed to be claimed as TDS Refund. This can be explained with the help of the following example
|
Total Tax Payable by Mr A for the year 2013-14 |
40000 |
|
|
(Less) |
TDS deducted by Mr B while making payment to Mr A |
-25000 |
|
(Less) |
TDS deducted by Mr C while making payment to Mr A |
-20000 |
|
TDS Refundable to Mr. A |
5000 |
In the above case, as the Total TDS Deducted is more than the Total Tax payable for the year, the excess amount deducted shall be the TDS Refund which the income tax dept would be making to Mr. A
TDS Refund Status
The taxpayer can also check online whether his tds refund has been sanctioned by furnishing his PAN No. and the year for which the refund has been sought on the following link:-
https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Important Points regarding TDS Refund
<h3 "="">
- Filing of Income Tax Return is mandatory for getting income tax refund
- The sooner you file your income tax returns and submit your ITR-V, the sooner it is expected that the excess tds would be refunded.
- The TDS deducted is reflected in Form 16 & Form 16A and the consolidated TDS deducted is reflected in Form 26AS
- If the taxpayer is of the belief that in any year, the TDS Deducted would be more than the total tax payable for that year, he can file Form 13 in advance for Nil/Lower Deduction of TDS.
CAclubindia
