Simplified TDS Refund Rules Proposed in Income Tax Bill 2025: Check Key Details Here

TDS Refund: Taxpayers often have to file income tax returns just so to claim a refund for having tax deducted at source for various reasons even when their income does not fall under the taxable bracket. The government is reportedly working on fulfilling this requirement simpler now.

The hastle of filiing income tax returns (ITR) when it comes to claiming a refund for for having your tax decucted even if your under the taxable limit has finally been eased under Income Tax Bill 2025.

This aforementioned bill introduces a single form instead of ITRs to claim your TDS refund. Taxpayers will now submit one form and avail their refunds, as per media reports.

It eradicates the Clause 263(1)(ix)/Section 433(1)(9), that earlier required anyone filing a refund claim to submit an ITR.

The change aids taxpayers with an annual income under Rs 12.75 lakh exemption limit and have paid TDS. For instance, interest earnings from banks where documentation wasn’t submitted to prevent deduction.

The intent is to have a single form that does the job for eligle taxpayers instead of them filing IT returns, meanwhile, the process reportedly will be linked with Form 26AS, which is a consolidated statement of tax deducted and collected at source.

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Select Committee On TDS Refund Process

The Select Committee on the Income Tax Bill 2025 has offered the suggestion to do away with a clause that states, "a person who intends to make a claim of refund under Chapter 10” should file an IT return.

As per the latest amendments to the new tax regime, people earning salaries up to Rs 12.75 lakh do not need to pay taxes. However, when salaried employees do not present the required documents, the employer deducts TDS.

The new law is likely to be implemented from April 1 next year, as per media reports. 

A Parliamentary panel examining the Income Tax Bill-2025 on Wednesday made 285 suggestions on the draft legislation