Refund of excess TDS amount deposited by mistake

To get a refund for excess TDS challan deposited by mistake, you've already completed the crucial steps by filing Form 26B online and submitting the acknowledgement with supporting documents to the income tax office.

*Processing Time:* The processing time for TDS refunds can vary, but typically, it takes around 1-6 months for the refund to be credited to your account after filing your Income Tax Return (ITR). 

However, in your case, since the status is showing "Pending with AO TDS," it's likely that the Assessing Officer is reviewing your request.¹ 

*Possible Reasons for Delay:* Some possible reasons for the delay could be. 

- *Verification of Documents*: The Assessing Officer might be verifying the documents submitted with the Form 26B acknowledgement. -

 *Priority Approval*: If the refund amount exceeds ₹1 lakh or ₹10 lakhs, prior approval from the Additional Commissioner or Commissioner is required, which might cause delays.

- *Outstanding Demands*: If there are any outstanding demands against your TAN or PAN, it might hold up the refund process. *Next Steps:* You can: - 

*Track Refund Request*: Check the status of your refund request on the TRACES portal using the "Track Refund Request" option. - 

*Contact the Income Tax Department*: If the delay persists, you can reach out to the income tax department or the Assessing Officer handling your case for an update. - 

*Ensure Correct Bank Details*: Make sure the bank details provided are accurate to avoid any issues with refund issuance. Keep in mind that patience is key, and it's essential to allow the authorities sufficient time to process your request.

 If you're still facing issues, consider consulting a tax professional for personalized guidance.

The PENDING WITH AO TDS status means your application is with the Assessing Officer (TDS) for manual processing. Form 26B refunds are processed manually - there is no automated flow.

What typically happens:

1. AO VERIFICATION: The AO verifies the challan in OLTAS against your Form 26B application and the supporting documents submitted.
2. TIMELINE: For amounts up to Rs 1 lakh, processing generally takes 2-4 months from submission date. For amounts above Rs 1 lakh, CIT approval is required and this can add 1-3 months.
3. IF THE AO REQUESTS ADDITIONAL DOCUMENTS: You may receive a written communication asking for ledger entries showing the excess deposit, cancelled cheque, or challan correction details if applicable. Respond within the stated deadline to avoid further delay.
4. IF 3 MONTHS PASS WITH NO ACTION: File a written grievance on the e-filing portal under Grievances, citing your Form 26B application date, acknowledgement number, and current TRACES status. This creates a formal record and typically prompts the AO to act.
5. INTEREST ON DELAYED REFUND: Under Section 244A of the Income Tax Act, you are entitled to interest at 6% per annum from the date of payment to the date of refund if the refund is delayed beyond 3 months from the end of the relevant assessment year.

For the full process including how to file Form 26B and track status on TRACES, this [TDS refund process guide for AY 2026-27](https://taxgarden.in/blog/how-to-claim-tds-refund-process-online-india-ay-2026-27) has the complete workflow.