Excess Tax Deducted at Source (TDS) is a common issue faced by businesses and individuals. If more tax has been deducted than the actual tax liability, it is essential to claim a refund to recover the excess amount. The refund process can be complex, but with proper knowledge and expert assistance, businesses can reclaim their funds efficiently.

Understanding TDS and Why Excess TDS Occurs

TDS is a mechanism where tax is deducted at the source of income, such as salaries, professional fees, rent, or contract payments, before being paid to the recipient. Excess TDS occurs when:

• The tax deducted is higher than the actual tax liability.
• Deductions or exemptions were not applied while computing TDS.
• Incorrect tax rate was applied.
• Income was subject to lower or no tax but was still deducted at a higher rate.

Step-by-Step Guide to Claiming a Refund for Excess TDS

Step 1: Check Form 26AS for Excess TDS

Form 26AS is a tax credit statement that shows all TDS deducted and deposited against your PAN. Businesses should review this form regularly to identify any excess deductions.

Step 2: File the Correct Income Tax Return (ITR)

To claim a TDS refund, filing an accurate income tax return is mandatory. Choose the appropriate ITR form based on the type of income and business structure:

• ITR-1 for salaried individuals.
• ITR-3 for business income.
• ITR-5 for partnership firms.
• ITR-6 for companies.

Step 3: Provide Correct Bank Details

Ensure that your bank account details, including IFSC and account number, are correctly mentioned in the ITR to receive the refund without delays.

Step 4: Verify and Submit the Return

E-verify the tax return using Aadhaar OTP, net banking, or DSC (for companies). Manual verification by sending a signed copy to the Income Tax Department is also an option.

Step 5: Track the Refund Status

After filing, track the refund status on the Income Tax e-filing portal under “Refund/Demand Status.” Refunds are usually processed within 30-45 days after ITR processing.

Common Issues That Delay TDS Refunds

Even after filing for a refund, businesses might face delays due to:

• Incorrect PAN or bank details in the return.
• Pending tax assessments or scrutiny by the tax department.
• Discrepancies between Form 26AS and the ITR filed.

How ASK ASSOCIATES Helps:

ASK ASSOCIATES simplifies the TDS refund process by:
✔ Accurately calculating tax liability to minimize excess deductions.
✔ Ensuring correct filing of ITR with appropriate deductions and exemptions.
✔ Tracking refund status and resolving any discrepancies with tax authorities.
✔ Assisting with tax assessments to avoid unnecessary scrutiny and delays.

With ASK ASSOCIATES, businesses can recover excess TDS efficiently without the hassle of tax complications.