ITR Filing 2025? Know What TDS Is, When It’s Deducted & Ways to Get Your Money Back

When you get down to actually filing your income tax returns it is very important for you to know what TDS is and how it is deducted if you wish to get your money back.

What Is TDS?

Tax Deducted at Source (TDS) is a withholding tax that requires the payer to deduct a certain amount as tax before making the payment.

The TDS deducted has to be deposited with the government against the PAN/TAN of the payee within the specified TDS due dates. If the TDS deducted is more than the actual tax liability, the taxpayer is eligible to get the excess TDS as a refund by filing an Income Tax Return.

What Is A TDS Refund?

A TDS refund is the money that is paid back by the government to the taxpayer when the tax paid by way of TDS is greater than the actual tax payable for the Financial Year.

What this means is that if the final tax liability is lesser than the actual TDS deducted while filing ITR, then excess TDS will be refunded to the taxpayer.

How Can You Claim TDS Refund?

To claim a TDS refund it is important to file an Income Tax Return within the due date. If the taxpayer fails to file an ITR, then the excess TDS will not be refunded. Also, the taxpayer should make sure to provide proper bank details such as account number, bank name, and IFSC code in the ITR as the amount will be credited directly to the bank account.

Here are some cases when you can claim a TDS refund:

• When your employer has deducted more than the income tax payable. In this case you can avoid TDS deduction from your salary as your income is below the basic exemption limit.
• When your taxable income is less than basic exemption limit, submit a declaration in Form 15G at the beginning of the FY to your bank to notify them that you don’t have a taxable income. Hence, no tax (TDS) would be deducted on your interest income.
• If you are a senior citizen with an FD account then you are exempt from TDS on interest earned from deposits.

If you wish to claim TDS refund online here are the following steps that you need to follow:

• To claim TDS online, you need to first register yourself on the IT department’s website: https://incometaxindiaefiling.gov.in/. 
• After registration, you can file your income tax return by downloading the ITR form relevant for you. 
• Fill in the details, upload the Form and click on submit. 
• Upon filing the ITR, an acknowledgement is generated for the ITR submitted, which you must e-verify. You can do e-verification by using a digital signature, an Aadhaar-based OTP or your net banking account. 
• However, if you haven’t been able to e-verify the ITR, then you can complete the verification by sending a signed physical copy of the same to the IT department.

Also Read: Pine Labs IPO: Fintech Giant Plans Rs 2,600 Cr Public Issue - Key Details Here