Completing your Income Tax Return (ITR) isn't solely a legal requirement; it also provides a means to recover taxes withheld at the source (TDS). TDS is subtracted by either your employer or other financial entities from various income streams such as salary, interest, and dividends. When the amount of TDS withheld surpasses your actual tax liability, you become eligible for a refund. Enrolling in the best income tax course online can help you comprehend the ITR filing procedure for claiming a TDS refund.
Step 1: Gather All Necessary Documents
Form 16/16A: This is the certificate of TDS issued by your employer or the entity deducting TDS.
Form 26AS: This document serves as a comprehensive tax statement that encompasses all tax-related data, encompassing TDS deductions.
Bank Statements: They may be required for the validation of TDS on interest earnings.
PAN Card
Aadhar Card
Step 2: Choose the Appropriate ITR Form
ITR-1 (Sahaj): For individuals with income from salary, one house property, other sources (excluding winnings from the lottery), and having total income up to ₹50 lakhs.
ITR-2: Designed for individuals & HUFs without income arising from business or professional profits & gains.
Step 3: Register on the Income Tax E-filing Portal
If you haven't registered on the Income Tax E-filing portal, you need to do so.
Step 4: Fill in Your Personal and Income Details
After successful registration, sign in and pick the appropriate ITR form. Provide your personal and income information as necessary. It is important to be meticulous in reporting all your income sources, including precise details of TDS from Form 16/16A and Form 26AS.
Step 5: Calculate Your Tax Liability
The ITR form will autonomously compute your tax obligation according to the data you furnish. Review the computations to confirm their alignment with your own calculations.
Step 6: Claim TDS Refund
Within the ITR form, in the section labeled 'Taxes Paid and Verification,' input the particulars of TDS deductions made by your employer or other entities. This encompasses the Tax Deduction and Collection Account Number (TAN) of the deductor, the TDS amount, and any related information.
Step 7: Verify and Submit
Before submitting your ITR, carefully review all the information you've entered. Cross-check your bank account details to ensure a seamless refund process. Once you're satisfied, click on 'Submit.'
Step 8: E-verify Your ITR
After submitting your ITR, you need to verify it. This can be done electronically using methods like Aadhar OTP, net banking, or by sending a physical signed copy to the Centralized Processing Center (CPC) within 120 days.
Step 9: Track Your Refund Status
You can track the status of your TDS refund by logging into the Income Tax E-filing portal. It typically takes a few weeks for the refund to be processed and credited to your bank account.
So, what are you waiting for? Join the best income tax preparation courses online today!
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