Is TDS Refundable on Salary in India?
Is TDS Refundable on Salary in India?
Complete Guide for FY 2024–25 | AY 2025–26
If you’re a salaried employee, you’ve probably noticed that a portion of your salary gets deducted every month as TDS (Tax Deducted at Source). But what if too much was deducted?
A common question is:
“Is TDS on salary refundable?”
The answer is:
✅ Yes, TDS on salary is refundable—if your total tax liability is less than the TDS deducted.
Here’s how it works.
✅ What Is TDS on Salary?
TDS on salary is deducted under Section 192 of the Income Tax Act. Your employer calculates your estimated annual income, applies the applicable tax slabs, and deducts monthly TDS accordingly.
🧾 When Can You Claim a TDS Refund on Salary?
You can claim a TDS refund if:
1. Your employer deducted excess TDS
(due to under-reporting of investments, deductions, or incorrect projections)
2. Your actual taxable income is below the basic exemption limit, but TDS was still deducted
3. You forgot to declare deductions under 80C, 80D, HRA, etc., to your employer but claimed them later in the ITR
4. You switched jobs mid-year, and both employers deducted TDS, without adjusting each other’s salaries
💡 Example:
• Gross Salary: ₹6,50,000
• TDS deducted by employer: ₹18,000
• After deductions (80C, 80D, HRA, etc.), your final taxable income = ₹4,80,000
• Final tax liability = ₹0 (after 87A rebate)
✅ You can claim a full refund of ₹18,000 while filing your ITR.
✅ How to Claim TDS Refund on Salary?
1. Collect Form 16 from your employer
2. Log in to https://www.incometax.gov.in
3. File your Income Tax Return (ITR-1 or ITR-2)
4. Declare total salary income, deductions, and TDS under “Tax Details”
5. Submit and e-verify the ITR within 30 days
6. If a refund is due, it will be processed and credited to your bank account
🔍 Where to Check Your TDS on Salary?
• Form 16 (issued by the employer)
• Form 26AS and AIS on the income tax portal
→ Shows total TDS deposited under your PAN
⏱️ When Will the Refund Be Issued?
Refunds are usually processed:
• Within 7 to 45 days after ITR e-verification
• Directly into your pre-validated bank account
💡 Important Points
| Topic | Info |
| Is TDS on salary refundable? | ✅ Yes, via ITR filing |
| TDS claim deadline | File ITR by 31st July 2025 (AY 2025–26) |
| Documents needed | Form 16, investment proofs (optional) |
| Refund status check | On incometax.gov.in or TIN NSDL |
| Interest on refund | Paid if the refund is delayed beyond the time limit |
Final Words
Yes, TDS on salary is refundable if your actual tax liability is less than the amount deducted. All you need to do is file your ITR on time, ensure accurate details, and claim your refund.
