Taxpayers usually file an Income Tax Return if they have paid excess tax in the previous financial year. Filing the ITR allows taxpayers to claim a refund. Typically, ITR is filed when the advance tax paid or TDS is more than the total tax liability. By verifying the TDS refund status online, individuals can gain valuable insights into their refund process.
What is a TDS Refund?
A TDS refund generally arises when the taxes deducted at source exceed the tax payable in a particular fiscal year. This is usually calculated after aggregating the income earned from various sources.
The TDS refund occurs when the amount of tax deducted at source is higher than the actual tax liability for the Financial Year. This calculation is done after combining the income from different sources. Taxpayers are divided into different tax slabs based on their income.
Depending on the tax slab, an individual is required to file their Income Tax Return.
For example, taxpayers in the 5% tax bracket can claim a TDS refund on the excess tax paid on income such as interest from fixed deposits or other investments.
Similarly, they may also claim a refund of excess TDS deducted from their salary, which was withheld due to the non-submission of proof for investments under Section 80C or rent receipts for claiming house rent allowance exemptions.
After filing the ITR, the TDS refund is usually credited to the taxpayer's linked bank account within 3-6 months. However, the speed of the refund process depends on the promptness of the e-verification.
The decision on whether excess TDS on income will be refunded is ultimately at the discretion of the Income Tax Department.
What Does TDS Status Mean?
The following table helps clarify the different TDS statuses:
| S.N. | Message Displayed | Meaning |
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‘No e-filing has been done this year.’ | This occurs when the ITR has not been filed or verified. The taxpayer needs to re-verify the ITR to update their status. |
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‘Refund determined and sent out to refund banker.’ | This means that the ITR is under processing and the refund application has been forwarded to the refund banker. |
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‘Refund unpaid.’ | This message indicates that the taxpayer has provided an incorrect IFSC code to the Income Tax Department. |
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‘Refund paid.’ | This status means the refund has been successfully paid to the taxpayer. |
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‘Not determined.’ | This status appears if the application was submitted recently and has not yet been processed. |
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‘Sent for Refund’ | This status will appear if the application was sent over a month ago and is being processed for refund. |
If the status is different from the above, it suggests that the TDS refund application might be delayed or stuck.
How to Check the Status of Income Tax Refund for TDS?
Follow these steps to access the TDS statement and track the refund status of the TDS amount–
Access the Official IT Portal
Step 1 – Log in to the 'E-filing' portal of the Income Tax Department.
Step 2 – Go to the TDS section.
Step 3 – Select the 'View Field Status' option.
Complete the Required Form
Step 1 – Fill in the necessary details by choosing appropriate options from the dropdown menu.
Step 2 – Click on 'View Details' to proceed.
Check the TDS Status
Step 1 – The status of the TDS return will be displayed on the screen.
Step 2 – Once the file is uploaded, the status will update to 'Updated'.
Step 3 – The file will be processed and validated.
Step 4 – After validation, the status of the file will be shared.
Generally, the status is updated within 24 hours after the file is uploaded, processed, and validated. The TDS refund process displayed will indicate whether a refund will be issued for the TDS paid. Note that you will need to provide your PAN and Assessment Year to view the status successfully.
Understanding TDS Refund Status – Accepted vs Rejected
If the TDS return is accepted, you can click on the token number to view the TDS refund status and then proceed to download the provisional receipt.
The provisional receipt for acceptance and rejection typically appears as follows –
| S.N. | Transaction Number | TAN | Form Name | Financial Year | Quarter | Filing Date | Upload Type | Token Number | Refund Status |
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Xxxxxxxxx1 | xxxxxxxxxx | 26Q | 2018-19 | Q1 | 14.07.18 | R | XXXXXXXX | Rejected |
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Xxxxxxxxx2 | xxxxxxxxxx | 26Q | 2018-2019 | Q1 | 14.07.18 | R | XXXXXXXX | Accepted |
Possible Causes for Delay in TDS Refund Receipt
There can be delays in receiving the TDS refund, even if the verification process has been completed. Common reasons for delay include:
- The applicant's Income Tax Return is still under processing.
- The Income Tax Department has issued a notice regarding the filed ITR, which could be a Defective Notice under Section 139(9) or a Proposed Adjustment Notice under Section 143(1)(a).
- The Income Tax Department processed the ITR and concluded that 'No Refund is Due'.
- The ITR was processed or adjusted by the Income Tax Department, resulting in an outstanding demand.
- Incorrect bank account details often cause delays in the TDS refund status even if the refund was processed and adjusted in time.
If the status reads 'Rejected', applicants can click the 'Token Number' to learn more about the rejection. Furthermore, they should investigate how to raise a complaint regarding delays in receiving the refund.
How to File a Complaint for Delayed TDS Refund?
If there is a delay in receiving the TDS refund, taxpayers have the option to file a complaint. It is important to provide certain documents to initiate the process of receiving the refund. For quicker resolution, they can contact the Income Tax Ombudsman and provide the following details –
- PAN
- Form 16
- TDS certificate provided by the bank
- Bank Statement
- Documents outlining all investments made and income earned during the financial year.
Procedure to Apply for TDS Refund Reissue
Taxpayers can also apply for a reissue of their TDS refund. Before doing so, they should verify if their ITR details are accurate and also check the TDS Refund Status.
Follow these steps to request a reissue of the TDS refund –
Step 1 – Visit the official Income Tax Department website.
Step 2 – Log in to the e-filing portal with your PAN number and password.
Step 3 – Click on the ‘My Account’ tab.
Step 4 – From the ‘My Account’ drop-down menu, select ‘Service Request’.
Step 5 – Go to the ‘Request Type’ section.
Step 6 – Choose ‘New Request’.
Step 7 – In the ‘Request Category’, select ‘Refund Reissue’.
Step 8 – Hit the ‘Submit’ button.
Step 9 – Enter your bank account number, IFSC code, and account type.
Step 10 – Click on ‘Submit’.
Step 11 – Use Aadhaar OTP and EVC code to authenticate the TDS refund reissue request.
Step 12 – Click ‘Submit’ once more.
Please note that any updates to this section will be reflected in the centralized TIN database. As a result, the TDS refund amount will be adjusted and reissued according to the updated details. However, before proceeding, taxpayers should confirm their TDS refund status.