How to Claim a TDS Refund

A TDS (Tax Deducted at Source) refund occurs when the total tax deducted by your employer (or others) over the financial year exceeds your actual tax liability. This often happens if you failed to declare certain tax-saving investments (like 80C, HRA, or medical insurance) to your employer in time, resulting in them deducting tax on a higher estimated income.

To claim a TDS refund, you must file your Income Tax Return (ITR). During the ITR filing process, you will declare all your actual income and all applicable deductions. The income tax portal will automatically calculate your final tax liability and compare it against the TDS already paid (as reflected in your Form 26AS). If the taxes paid are higher, the portal will show a refund due.

Once you successfully file and e-verify your ITR, the Income Tax Department will process it. After processing, if the refund is approved, the amount will be directly credited to the pre-validated bank account you selected during filing. It is crucial to ensure your bank account details are correct and pre-validated on the IT portal to avoid delays.