Service Info:
- Short Name : TDS
- Category : TDS
- Subcategory : basic questions
- Amount : ₹1500.00
?1. What is TDS (Tax Deducted at Source)?
TDS (Tax
Deducted at Source) is a system
where a person or company making a payment (like salary, interest, rent, etc.)
deducts a small percentage of tax before paying the recipient. The deducted tax
is then sent to the government.
·
Example: If your employer pays you 50,000/month, they
may deduct 10% (5,000) as TDS and give you 45,000. The 5,000 goes to the
Income Tax Department.
· Purpose: Ensures the government collects tax in advance instead of waiting until year-end.
2. When and Why is TDS
Deducted?
TDS is deducted in various
situations:
|
Payment
Type |
When
TDS is Cut |
Why? |
|
Salary |
Every month |
Employer deducts tax based on your
income slab |
|
Bank Interest |
If interest > 40,000/year
(50,000 for seniors) |
To track earnings from savings |
|
Rent |
If rent > 50,000/month |
Ensures landlords pay tax |
|
Contractor Payments |
If payment > 30,000
(single/recurring) |
Prevents tax evasion |
Exceptions: No TDS if you submit Form 15G/15H (for interest income) or show a lower tax slab.
3. How to Check TDS Deducted Using Form 26AS?
Form 26AS is a tax credit statement showing all TDS
deductions against your PAN.
Ø Steps to Check:
1.
Go to Income Tax e-Filing
Portal.
2.
Login with PAN & password.
3.
Click "View Form
26AS" under "My Account".
4.
Select the financial year and
view/download.
Ø What’s Inside?
·
TDS deducted by employers/banks
·
Advance tax paid by you
· Refunds received
4. Eligibility for TDS Refund
You can claim a TDS refund if:
Total tax deducted (TDS) > Your actual tax liability
You filed Income Tax Return (ITR)
No pending tax dues
Example:
·
Your total tax liability = 10,000
·
TDS deducted = 15,000
· Refund due = 5,000
5. Step-by-Step Guide
to Claim TDS Refund Online
Follow these steps to get your refund:
1.
File ITR (Income Tax Return) on
the e-Filing
Portal.
2.
Select Correct ITR Form (ITR-1
for salaried, ITR-2 for house property income, etc.).
3.
Enter TDS Details (from Form
26AS).
4.
Verify ITR using Aadhaar OTP or
EVC.
5. Refund Processing begins after ITR is verified
Service Description:
6. How to File ITR for TDS Refund?
1. Gather
Documents:
o
Form 16 (from employer)
o
Form 26AS (TDS details)
o
Bank statements
o
Rent receipts (if applicable)
2. Choose ITR
Form:
o
ITR-1 (Sahaj): Salaried
individuals (income < 50 lakh, no house property).
o
ITR-2: For capital gains or
multiple house properties.
3. File
Online:
o
Enter income details.
o
Add TDS from Form 26AS.
o Submit & verify.
7. How Long Does it
Take to Get a TDS Refund?
·
Normal Processing: 3-6
months after ITR filing.
·
Fastest Cases: Some get refunds
in 1-2 months if no errors.
·
Delays Possible if:
o ITR has mistakes
o Tax Dept. checks documents
8. Common Reasons for
TDS Refund Delay
Incorrect Bank Details (Account number/IFSC mismatch)
Unverified ITR (Must verify via Aadhaar OTP or EVC)
Pending Tax Dept. Scrutiny (If high refund claimed?)
Mismatch in TDS & Form 26AS (Employer/bank
didn’t report TDS correctly)
Solution: Check refund status & correct errors.
1.
Visit IT
Refund Status Portal.
2.
Enter PAN & Assessment
Year (e.g., AY 2024-25 for FY 2023-24).
3.
Check status:
o
"Refund
Issued" Check bank account.
o
"Processing" Wait.
o "Failed" Update bank details.
10. Difference between TDS and Advance Tax
|
Feature |
TDS |
Advance Tax |
|
Who Pays? |
Deducted by payer (employer/bank) |
Paid directly by taxpayer |
|
When? |
At payment time |
In installments (June, Sept, Jan,
etc.) |
|
For Whom? |
Salaried, investors, contractors |
Business, freelancers, high-income
earners |
|
Example |
Salary TDS by employer |
Freelancer pays tax in advance |
Key Point:
·
TDS = Someone else deducts tax for
you.
·
Advance Tax = You pay tax in advance
if liability > 10,000/year.