If there is an excess deduction of tax at source, the deductor can claim for a TDS refund of the excess amount that is deducted.
The difference between the TDS (tax deduction at source) and the actual amount that is paid by the deductor, whichever is more will be considered as the excess amount. It is then adjusted against any current tax liabilities and the remaining amount is then refunded.
If you are expecting your TDS refund and wondering where it is stuck, then you can easily check and rectify it online by following the procedure laid down for TDS refund online.
TDS return process has been made fully electronic for the ease and convenience of the tax filer. So, if you have not received your refund, you can track the TDS refund online on tax information network website of the Income Tax department.
TDS is basically the full form of tax deducted at source. Any person or company making the payment is required to deduct tax at source if the payment exceeds the specified/maximum limits. As per the Income tax laws, TDS has to be deducted as per the rates set by the tax department.
A person or a company, which pays the amount after deducting the TDS, is known as the deductor. And the person or the company receiving the payment is known as the deductee.
It is the responsibility of the deductor to deduct TDS prior to the payment and then deposit it with the government.
TDS deduction doesn’t not depend on the mode of payment, whether it is via cheque, cash, or credit–and it is linked to the deductor’s PAN and is deducted.
Tax at source is deducted on the below-mentioned payments-
However, TDS is not applicable to the payments made by individuals are for rent, and the payments made to the doctors and lawyers.
TDS is a kind of advance tax and it has to be periodically deposited with the government by the deductor. The onus of depositing the TDS lies with the deductor and the role of deductee is restricted to claiming the TDS refund while filing the Income Tax Return.
Tax deducted at source has to be deposited by the deductor to the central government by filling all the details in the TDS return form.
TDS return is filed quarterly and the different types of tax deductions can be filed through different forms for TDS return.
Basically, the concept of TDS requires the person responsible to deduct taxes appropriately as per the specified rates, for the payments of specific nature that are being made to a particular recipient.
Based on the certificate issued by the deductor, the receiver from whose income tax is deducted at source gets the credit of the deducted amount in his personal assessment.
If there is an excess deduction of TDS, the deductor can claim for a refund of such excess tax deducted at source. The excess amount will be refunded as per the specified procedure for TDS refund.
The difference between the TDS or deductible and the actual payment made by the deductor whichever is considered as the excessive amount. This amount is then adjusted against any current tax liabilities (as per the Direct Tax Acts). Once all the liabilities are paid, the remaining amount will be refunded.
The TDS deduction from the income is required by the statute, which is under the head salary.
The “employer-employee” relationship is an essential condition for taxing, under the head salaries, of particular receipts.
Such a relationship exists when the employer directly controls and supervises the employees and lays down the instructions to monitor the control. As per the Income tax laws, a tax deduction is required when-
To know the status of your tax refund/TDS refund online, you would need to provide your PAN card number along with the tax assessment year.
Your status would be shown as ‘Not Determined’ if you have submitted your application in the past one month. If it has been longer than that, your application would read as being sent for a refund. And you would soon get money refunded in your account. If your refund status is different, then it means that your application is stuck.
If the ITR is filed and you are waiting for your TDS refund, then you can check the TDS refund online on the TIN NSDL website or on the official site of the Income Tax Department. All you need to do is log on the site with your registered PAN number.
Under the purview of Section 192, the employer deducts the TDS on the amount to be paid at the average rate of income tax. It is to be calculated on the basis of the rates applicable as per the Finance Act for that particular financial year in which the payment was made.
Under the purview of Section 203, any individual or company deducting the TDS is required to furnish a certificate to the recipient regarding the tax deduction along with other required details. It is known as the TDS certificate. It is also applicable to the banks that deduct tax for the payment of the pensions.
A certificate has to be issued in Form 16 if the employees are paid salary inclusive of their pensions. It has to be issued in the deductor’s own stationery.
However, it is not obligatory to issue a TDS certificate if the tax at source is not deducted by virtue of claims of deductions.
It is quite simple to filing your Income tax/TDS return- Simply visit the official site of Income Tax- www.incometaxindiaefiling.gov[dot]in
Download the required form from the site and fill all the particulars and then submit the form online. The ITR forms are available for different categories and you can to select the form, which applies to your income category.
If you have applied for ITR and you have still not received your TDS refund, or if there is a delay, you can write to your Income Tax officer.
You need to furnish all the required details and documents to get the refund amount. Despite this, if you do not get any satisfactory response then you can write to the Income Tax Ombudsman with the below-mentioned details:
Documents declaring your earning and investments