Tax Deducted at Source () is a way through which tax is collected in advance by deducting a certain amount from specified payments. The person making the payment deposits the deducted tax with the government on behalf of the recipient.
In some cases, the total TDS deducted during a financial year may exceed the taxpayer’s actual tax liability. When this happens, the excess amount can be recovered by filing an Income Tax Return (ITR) and claiming a refund.
So, let’s find out how you can claim a TDS refund in ITR and check the status as well.
What is TDS refund?
A TDS refund becomes applicable when the amount of tax deducted from your income during a financial year is more than the tax you are actually required to pay. If your total taxable income is below the basic exemption limit and no tax is ultimately payable, then also you can claim a refund of the TDS deducted.
In such cases, the excess tax deposited with the government can be recovered by filing an . After the Income Tax Department processes your return, the excess tax paid is refunded directly to your linked bank account.
TDS is deducted from several types of payments, including salary, dividend income, bank interest, professional fees, consultancy charges, contract payments, commission, brokerage, lottery winnings, and online gaming. This means that you receive such payments after tax is deducted. You can claim this deducted amount and get a refund by filing an ITR.
Steps to claim TDS refund in ITR
Follow these steps to claim a TDS refund while filing ITR.
Step 1: Check TDS in Form 26AS
First, check Form 26AS, which is linked to your PAN and available on the Income Tax portal. It shows all TDS deducted from your income and deposited against your PAN by different deductors.
This statement gives a complete summary of TDS on income, such as salary, interest, and other payments. It also includes details of any advance tax or self-assessment tax you have paid.
Step 2: File ITR and claim refund
While filing your ITR, report all your income correctly and ensure TDS details match Form 26AS. The system will automatically compute whether any refund is due. If your total TDS is higher than your tax liability, the excess amount will be shown as a refund.
Step 3: Verify ITR and get a refund
After filing, complete e-verification using Aadhaar OTP or other specified methods. Once e-verification gets approved, the refund is directly credited to your linked bank account.
How to check your income tax refund status?
Refund processing begins only after you complete e-verification of your ITR. Generally, it takes around 4–5 weeks for the refund to be credited to your bank account, depending on processing timelines.
To check your refund status, follow these steps:
- First, visit the Income Tax e-Filing portal and log in using your user ID and password. Go to e-File, then , and click “View Filed Returns”. Select the relevant assessment year to proceed, i.e., AY 2026-27.
- Next, click on “View Details” to see the status of your filed return. Here, you can also view the complete processing history of your ITR, including refund updates.
- The refund status may appear in different forms, such as refund issued, refund partially adjusted, full refund adjusted against outstanding demand, or refund failed.
A refund may fail if your PAN is inoperative and is not linked to your Aadhaar. Also, it can fail if your bank account is not pre-validated, the bank details do not match your PAN records, the IFSC code is incorrect, or the bank account mentioned in the ITR has been closed.
To avoid issues, ensure your PAN is linked with Aadhaar and your bank account details are correctly updated and validated.
Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations.