How to claim income tax refund online for TDS: Important pointers

Updated on: 16 Apr 2025

You can claim an income tax refund online when you pay tax in excess. This can happen in two scenarios:

When the advance tax you pay is higher than your liability
When the TDS (Tax Deducted at Source) is higher than your actual tax

Generally, refund claims for the former are more common. This is why knowing how to claim an income tax refund for excess TDS is essential. Read on to know when and how you can get a TDS refund.

What is a TDS refund?

Let us start by knowing what is tax refund in terms of TDS. This happens when you have paid a higher tax amount, as TDS, than your actual tax liability. For example, say you have paid ₹50,000 as tax deducted at source, but your actual tax liability is only ₹40,000. In this case, you can be eligible for a tax refund.

Given that TDS is deducted in advance, you only know about your actual refund amount when you file your income tax return. Do note that income tax refund above ₹50,000 may be subject to additional scrutiny to verify your details.

When can you claim a TDS refund?

As mentioned, you are eligible for a TDS income tax refund online or offline when you have paid extra tax. The circumstance for this refund claim generally occurs in two scenarios:

Your employer has deducted more TDS from your salary
The financial institution where you have an FD has deducted TDS on interest earned if it exceeds ₹40,000 or ₹50,000, whichever is applicable

In any case, you can file a claim for a refund only when the amount of tax you have paid is more than what your actual tax amount comes to. Keep in mind that if the tax you have paid is less than the actual amount, you must pay the difference at the time of return filing.

How to claim a TDS refund?

If you have wondered how to claim an income tax refund for TDS, the answer is simple – file your income tax return. TDS refunds are available only when you file your income tax return, verifying that you have a lower tax liability.

To file your income tax return and, subsequently, your refund claim, visit the official income tax department website and follow these steps:

Register and/or log in to your account
Select the applicable ITR form
Fill in the details of your income
Submit your income tax return
E-verify your return online or offline

When you file your return, you can check whether you are eligible for a tax refund. If eligible, the income tax department will issue the refund after processing your return.

How to check the TDS refund status?

You can check the status of your TDS income tax refund online through two websites. The first is through the official income tax department website and the second is the NSDL website. Log in and navigate to the tax refund section available on both websites.

On the income tax department website, the section will be available under the ‘View File Returns’ option. On the NSDL website, you must visit the ‘Status of Tax Refunds’ under the ‘Services’ section.

When will the TDS refund be credited?

The time it takes for a tax refund to reflect in your account depends on the time the income tax department takes to process and verify your income tax return. Generally, the refund can take a few weeks or months to process.

Remember that you are eligible to receive interest if there is a delay in the credit of your tax refund. As per income tax rules, you can get a simple interest rate of 6% on your refund amount. However, you will not receive the interest if the refund amount is less than 10% of your tax liability.

Now that you know what is tax refund for TDS and how to claim it, be sure to file your returns on time. When filing your income tax return, claim all the applicable deductions, such as those under section 80C and more. Watch out for less common deductions like the ones you can get when a personal loan is availed for specific reasons.

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FAQs on TDS refund claim

What is the refund of tax?

A refund of tax or tax refund is applicable when the taxes you have paid during a financial year are higher than your actual tax liability. For example, if you have paid ₹15,000 in taxes but your actual liability comes to ₹10,000, you are entitled to a tax refund.

How to get an income tax refund?

To get your income tax refund online, you can file your tax return on the official income tax filing website before the due date. When filing the return, you will automatically see whether you are eligible for a refund. If you are, the refund will be credited to your account after processing your income tax return.

How to apply for a TDS refund?

You must file your income tax return to make a TDS refund claim. After that, you will automatically see the refund amount you are eligible for. The refund will get credited to your account after the income tax department processes your return.

Is tax refund taxable income?

No, the income tax refund you get is not taxable. However, if applicable, the interest received on the refund is taxable.

Why have I not received an income tax refund?

You may not have received your income tax refund for numerous reasons. These can include delayed processing, incorrect details, discrepancies in the return, or technical errors. You can check the status to know the exact reason why the refund is delayed.

How much TDS can be claimed?

The amount of TDS refund you can claim depends on the difference between your tax liability and the amount you already paid as tax.

Who is eligible for a TDS refund?

Taxpayers who have paid TDS above their total tax liability can claim a refund. For example, if you have paid a TDS of ₹10,000, but your total tax liability is ₹7,000, you are eligible for a refund of ₹3,000.

When can I claim a TDS refund?

You can claim a TDS refund when your total tax payable exceeds the tax you have already paid to the government.

What is the fee for TDS return?

If you delay filing your TDS return, you will be subject to a penalty of ₹200/day until you file the return.

What percentage is TDS?

The TDS rate applicable depends on numerous factors, such as the product/service on which it is deducted and whether you have a PAN card. You can check your TDS deductions via Form 26AS, available on the income tax department website.