How to apply for TDS Refund?
TDS is “tax deducted at source”. The organization wherein you are working is the source and it deducts the tax amount from your salary in a particular percentage depending on the amount of tax liability which is again deposited in the Income Tax Department.
At the beginning of financial year the companies circulate the tax proposal forms which are filled by every employee. In this they need to declare what all investments they can make in the particular financial year along with the rent that they will be paying and any other non salaried income that they might earn in that particular financial year.
After receiving the tax proposal form, the company has to see if the investments which the employees are supposed to make and the exemption they would get would is keeping their salary under the tax liability slab or not. If not then the tax is charged on that excess amount which is known as TDS.
Now some times it is found that the organization wherein you are working charges extra in lieu of your tax liability. So that particular amount is claimed from the Income Tax Department after the completion of the assessment year on 31st March. However even if you have nil return then also every year ITR filling is mandatory as per the Income Tax Rule 1961.
Following are the procedures which need to be followed to claim the return:-
1) First you need to take Form 16 from your present and previous organization which is a clear description about the total income, total investments, tax liability and tax deduction for the assessment year.
2) Then you need to visit to the Income Tax Department either online or physically.
3) There you need to fill the Income Tax Refund form as per the documentations provided in Form 16 and also you need to attach the attested copy of the same.
4) Once it is done you get a counter part which is the acknowledgment for the submission of refund form. While claiming the refund this acknowledgment number is very essential.