How To File TDS Return & Claim Tax Refund Online

The financial year 2022 – 23 is about to end in a couple of weeks, it’s time to settle all your accounts and pay taxes including TDS. It is mandatory for employers to deduct the TDS from the salaries of employees who are earning equal to or above the taxable income. If you fail to comply with it then you may draw penalties to your organization so, it’s better to do the necessary. 

In this blog, we will discuss how to file TDS returns online and how to claim a tax refund online. So, what are we waiting for? 

What Does TDS Mean?

TDS is an acronym for Tax Deducted at Source. It is the tax deducted from the total amount being paid for making specified payments such as rent, salary, interest, commissions, professional fees, etc. It is deducted by the person making the payment. The recipient receives the net income (after deducting TDS) and the gross amount will be added to his income and the amount of TDS is adjusted against his final tax liability. The recipient can claim credit for the tax amount already paid on his behalf. 

Normally, the person receiving the payment is responsible for paying the tax, with TDS the government intends to prevent tax evasion and make the regulations more stringent. 

Income Sources Liable For TDS 

Following is list of income which qualifies for TDS: 

• Salary
• Bank Interest
• Brokerage or Commission
• Commission payments
• Amount under LIC plan
• Compensation on buying immovable property
• Contractor payments
• Deemed Dividend
• Insurance Commission
• Interest apart from interest on securities
• Interest on securities
• Payment of rent
• Remuneration paid to the director of a company, etc
• Transfer of immovable property
• Winning from games like a crossword puzzle, card, lottery, etc.

Who Can File TDS Returns

Organizations having a valid Tax Collection And Deduction Number (TAN) can file TDS returns. Any entity making payments liable for TDS is required to deduct the same at the source itself and deposit the tax amount with the concerned authorities within a stipulated time. 

Last Date To File TDS Returns 

Quarter	Period	Last date of filing TDS
1st Quarter	1st April to 30th June	31st July 2023
2nd Quarter	1st July to 30th September	31st October 2023
3rd Quarter	1st October to 31st December	31st Jan 2024
4th Quarter	1st January to 31st March	31st May 2024

Prerequisite To File TDS Returns Online

To file your TDS return, the following is the list of things you must have. 

• Must have a valid TAN number and ensure it is registered for e-filing portal i.e. Income Tax Portal 
• Draft your TDS statements with the use of Return Preparation Utility before the same with File Validation Utility 
• Have a valid Digital Signature Certificate registered for e-filing if you want to upload your return using DSC
• Make sure his/her Aadhar is linked with PAN if you want to upload returns using Electronic Verification Code

Procedure To File TDS Returns 

Here is a step-by-step procedure to file TDS Return Online 

• Visit https://www.incometax.gov.in/. On the top right side, you will find a ‘Login’ button. 
• Click on that button, and fill out the login details. Your TAN will be the user ID. 
• After logging in, find the ‘TDS’ drop-down menu. 
• In the drop-down, there will be an option ‘Upload TDS’. Click on it. 
• After clicking on it, you will see a form. Fill in the right details and cross-check before clicking on ‘Validate’ 
• Validate the TDS return filing using either DSC or EVC

How To Claim Tax Refund Online 

Tax Deducted at Source is the tax deducted from an individual’s salary or payment and the net amount is credited to the recipient’s account. If the TDS amount is more than the amount you are supposed to pay as Income Tax then you may be eligible for a TDS refund. 

Eligibility Criteria For Getting TDS Refund 

Following is the list of eligibility criteria for receiving a TDS refund, if you fall in any of the categories, you may get a tax refund: 

Annual Income 

The first and the most considerable criterion for receiving a tax refund is your annual income. If your annual income is less than the taxable amount announced by the Government, you may be eligible for a refund. 

Overpaid Tax

Overpaid tax refers to a situation where you paid more TDS than actual tax liability based on your annual earnings. In such cases, you can claim a refund of the overpaid tax amount. 

Process to Claim TDS Refund Online

The process to claim a TDS refund online is quite simple. Following are the steps that you need to follow: 

• Sign up or sign on the e-filing portal of the Income Tax Department which is incometaxindiaefiling.gov.in
• Carefully fill in the relevant detail in the application ITR form 
• Once the form is submitted successfully, it will generate an acknowledgment. Save it. 
• E-verify the acknowledgment with the use of either digital signature, net banking, or Aadhar-based OTP. 

How To Avoid TDS Deductions On Salary

In case you are looking for options to save your salary or payment from TDS deductions, here is the solution for you. By investing in any of the financial instruments, you can save your TDS deductions: 

Public Provident Fund 

Public Provident Fund or PPF is a government scheme that allows you to invest and earn returns on your investments. The best part of the scheme is that the amount you invest in this scheme is exempted from tax and the returns are also tax-free. 

Buy A Home (First time) 

If you buy a home on loan for the first time, you are entitled to save TDS on your salary. In such a case, there are also tax benefits on the interest payment of a home loan. Provided that no residential property should be registered in your name on the date when the loan is approved. 

Medical Insurance 

If you buy certain health insurance then you may get a less TDS cut from your salary. And some policies also cover your spouse and economically dependent children. It is a win-win situation for you. 

Donations 

Under section 80G of Income Tax, you are eligible for tax exemption for your donation, especially when it is more than Rs. 2000. 

Summing Up 

So this was a guide on how to file a TDS return and claim a tax refund on your TDS. We hope after reading this blog you are aware of the process to file and claim a tax refund online. In case you are struggling to calculate the TDS on your company expenses then you should sign up with Munim – free* accounting software in India.