Is TDS Refunded Automatically in India?
Is TDS Refunded Automatically in India?
Complete Guide for FY 2024–25 | AY 2025–26
If tax is already deducted from your salary, FD interest, or professional payments, you may be wondering:
“Will I get my TDS refund automatically?”
The short answer is:
❌ No, TDS is not refunded automatically.
✅ You must file your Income Tax Return (ITR) to claim the refund.
Let’s understand why and how to get your TDS back.
📘 What Is TDS?
TDS (Tax Deducted at Source) is a mechanism where tax is deducted by the payer (employer, bank, client, etc.) before paying you and deposited with the Income Tax Department on your behalf.
Common examples:
• TDS on salary (Section 192)
• TDS on FD interest (Section 194A)
• TDS on rent, consultancy, commission, etc.
❓ Is TDS Refunded Automatically?
No.
Just because TDS is deducted does not mean the refund will come automatically.
To get the refund:
• You must file your ITR
• The Income Tax Department will process your return
• If excess TDS was deducted (i.e., tax paid > actual liability), the difference will be credited back to your bank account
✅ When Do You Get a TDS Refund?
You are eligible for a TDS refund when:
1. Your total TDS deducted is more than your final tax payable
2. Your income is below the taxable limit, but TDS was still deducted (e.g., bank FDs for retirees)
3. You declared fewer investments/deductions to HR, but claimed full while filing ITR
🧾 Example
• Salary income = ₹4.5 lakh
• TDS deducted = ₹8,000
• But actual tax liability (after 80C, 80D, etc.) = ₹0
✅ You file your ITR and claim a refund of ₹8,000
➡️ Refund is processed and credited to your bank by CPC after verification
⏱️ How Long Does It Take to Get the TDS Refund?
Usually:
• 7 to 45 days after e-verification of ITR
• Delays may occur if bank details or AIS/Form 26AS mismatch
💡 Tip: Use a pre-validated bank account and ensure the correct ITR form is used.
🔍 How to Track Your TDS Refund?
1. Visit incometax.gov.in
2. Log in to your account
3. Go to “e-File > Income Tax Returns > View Filed Returns”
4. Click on “Acknowledgement Number”
5. Check “Refund Status” or use the TIN NSDL refund portal
💡 Key Points to Remember
| Point | Status |
| Is the TDS refund automatic? | ❌ No |
| ITR filing required? | ✅ Yes |
| Time to receive a refund | 1–6 weeks (post-verification) |
| Refund processed by | CPC, Bengaluru |
| Interest on delayed refund (> ₹100) | ✅ Yes (Section 244A) |
Final Words
TDS is not refunded automatically—you need to file your ITR to claim any excess tax paid. So even if you earn below the exemption limit or are eligible for a refund, don’t skip filing.
