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.
9. How to Track TDS
Refund Status?
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.