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.

Once Form 26B is submitted with the supporting documents, the refund claim is generally processed by the TDS Assessing Officer. “Pending with AO TDS” indicates that the claim is awaiting action; it does not, by itself, mean that another online step is required. There is no assured processing time, so one month’s delay alone does not establish that anything is missing.

• Check that the acknowledgement and supporting documents were received and linked to the online claim, and that the bank account/refund details are valid.
• Follow up with the jurisdictional AO (TDS) using the acknowledgement number, and request the status or any document/query pending. If it remains unresolved, raise a grievance through the income-tax portal and retain the reference number.
• Ensure the claim relates to a genuine excess payment and that the challan has not already been consumed or adjusted against TDS liabilities.

Tracking the acknowledgement and AO follow-up is the key part of closing a Form 26B refund workflow. Manual monitoring and document follow-ups can be difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a WhatsApp discussion on streamlining compliance work, connect here: https://wa.me/message/3HVOZ7HIY4ESC1

Refund of excess TDS deposited by the deductor – next steps:
• 'Pending with AO TDS' means the AO's approval is awaited; no further online step is required after Form 26B and submission of documents. There is no fixed statutory timeline.
• Follow up in writing with the jurisdictional AO (TDS), quoting the acknowledgement number. If it is still delayed, raise a grievance on the e-filing portal for the TAN.
• Points the AO checks: the TDS statements for the period are processed, the challan is unconsumed, the deductee has not already claimed the credit, and there is no outstanding default or demand on the TAN (it is adjusted first). The bank account of the TAN must be pre-validated.
• Alternative: rather than a refund, an unconsumed challan can often be tagged against TDS of a later quarter through a correction statement, which is usually quicker.
• Update: under the Income-tax Rules, 2026, the application is Form 139 (replacing Form 26B), filed on TRACES; the refund with interest is credited to the deductor's pre-validated bank account.