ITR: Excess TDS deducted? Here is the easiest way to get the money back into your bank account..
With the financial year having ended, the season for filing Income Tax Returns (ITR) is currently underway. It is crucial for everyone—from salaried employees to ordinary earners—to know how to reclaim any excess Tax Deducted at Source (TDS) or advance tax that has been deducted beyond their actual tax liability during the year. Excess tax deducted from sources such as bank interest, salary, dividends, or other payments remains securely with the government; this amount can be recovered directly into your bank account by filing your ITR correctly.
**Circumstances under which a TDS refund is granted**
According to income tax regulations, you become eligible for a refund when the total TDS deducted during the financial year exceeds your actual tax liability. Additionally, if your total annual taxable income falls below the basic tax exemption limit set by the government—yet TDS was deducted for some reason—you can claim the entire amount back. Once the ITR processing is complete, the Income Tax Department digitally transfers this excess tax amount directly to your registered bank account.
**Process for claiming excess tax**
Claiming a tax refund begins with reviewing Form 26AS. This form is linked to your PAN card and contains a detailed record of every penny deducted as salary tax, interest tax, advance tax, or self-assessment tax. When filing your ITR, accurately declare your total income and cross-check it with the TDS figures shown in Form 26AS. If the TDS deducted exceeds the liability, the tax filing system will automatically determine the refund amount. Please note that e-verification—using an Aadhaar OTP or other available methods—is mandatory after filing the return, as the refund process cannot proceed without it.
How to Check Your Refund Status on the Portal
Generally, it takes about 4 to 5 weeks for the refund to be credited to your bank account after the e-verification process of the ITR is completed. However, this timeframe may vary depending on individual cases. To check the status of your refund, first log in to the Income Tax e-filing portal. Next, navigate to the ‘e-File’ section, select ‘Income Tax Returns’, and then choose the ‘View Filed Returns’ option. Once you select the relevant assessment year and click on ‘View Details’, the status will be displayed. Here, you may see important messages such as ‘Refund Issued’, ‘Refund Failed’, or ‘Refund Partially Adjusted’.
Mistakes That Can Hold Up Your Refund
Often, a minor oversight can cause the refund amount to get stuck. If your PAN card is not linked to your Aadhaar, the processing of your refund is bound to be halted. Additionally, failure to pre-validate the bank account, discrepancies in name spelling between bank records and PAN records, entering an incorrect IFSC code, or using a closed bank account are common reasons for refund failures.
To successfully claim a refund for TDS deducted on earnings such as salary, dividends, bank interest, professional fees, contract payments, commissions, brokerage, lottery winnings, or online gaming, it is essential to thoroughly verify your bank details before filing your ITR.
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