Excess tds refund procedure


STUDENT

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.

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

 

 

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  1. Filing of Income Tax Return is mandatory for getting income tax refund
  2. 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.
  3. The TDS deducted is reflected in Form 16 & Form 16A and the consolidated TDS deducted is reflected in Form 26AS
  4. 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.

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Co-founder @ Graviky

One correction Ketan.  Its not TDS refund.  It is tax refund.  The whole process you have referred to is for tax refund.

 

TDS refund is all together a different procedure. 


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STUDENT

@ nikhil ... yeah rght sir

actually  due to network problem half hi post huya h so will post rest later on :)

 
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hi

please solve my qury

One of our client quoted wrong section in challan while making tds payment. i.e., he mentioned 194Jinstaed of 194C.  Can he get refund of excess tax paid?? or it will be adjusted for further months??

 
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Co-founder @ Graviky

you can adjust it against other TDS liabilities.

 
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