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TDS for Individuals and Refund

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TDS for Individuals and Refund

TDS stands for Tax Deducted at Source. TDS is the indirect approach of the Income Tax Department to collect tax from each and every individual who is earning a taxable income i.e. more than Rs. 2,50,000. TDS is the amount which the payer (aka Deductor) will deduct at the time of making payment and submit that amount of tax with the government on or before the due dates prescribed for it. If the deductor is unable to deduct tax or do not pay after deducting, then liability shifts on the detector with heavy late fees along with interest. TDS is deducted at the rates prescribed for the prescribed type of income.

What is the need for Introducing TDS?

It was very difficult for the Income Tax Department to catch the large number of scattered individuals who is earning more than the minimum taxable income as Individuals tend to hide their income as the law was not so strict and there were not enough technology with the Income Tax Department to catch the tax evaders as the amount involved for each individual was very small. So to overcome this issue, government and Income Tax Department came with the idea that the Income Tax which liability of individual will be deducted at the time of payment by the payer and submit it with the government. In case of salaried employees, this liability of deducting tax is with the respective company or the organization who pays the salary to their employees.

Where to check the TDS deducted from income?

Whenever any individual earns and receive any income after deduction of tax, then such amount of TDS will be submitted by the payer via filing a TDS return. After Submission of TDS Return and processing of such Return, the amount of TDS will be reflected in the Form-26AS and any Individual can check this amount just by logging in on the Income Tax Department website ( and then view Form-26AS and all the amount of TDS deducted whether from one Payer or from different payers, then such amount of TDS along with gross amount will be reflected in the Form-26AS.

How to get Refund of TDS?

If income earned and received by any person on which TDS has been deducted, then such amount of TDS is in excess of the actual tax liability of that person. This happens in cases, where TDS is deducted and Assessee has invested in LIC, ELSS etc (i.e. any deduction available under section Chapter VI-A) then such amount of investment will be allowed as deduction, from the Total Income and the excess amount of TDS that has been deducted will be refunded to the prevalidated Bank Account selected by the Assessee while filing the Income Tax Return.

TDS Refund For preceding years, where return has not been filed?

In Many cases, Assessee does not have knowledge about tax deducted from income, and assesse does not file Income Tax Return then refund of Income Tax is not possible in that year. But Refund of that can be taken in the following assessment years by providing the details of TDS deducted in earlier assessment years in the Income Tax Return. It is advisable that to get the refund of the preceding years, do take help of a professional (Chartered Accountant) as there are too many details to be filled and various data to be handled.

Hope this Article was Informative and Helpful. Thanks

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