How do I claim a TDS refund?

By the India Law Simplified editorial team · Verified against the bare Acts & official portals · Updated 2026-07-28 · ~4 min read

⚡ Quick answer

If more TDS was deducted on your income than your actual tax liability, you get the excess back by filing your income-tax return. Report all your income and the TDS shown in Form 26AS/AIS, compute your real tax, and the difference becomes your refund. Once you e-verify the ITR, the refund is credited directly to your pre-validated bank account — usually within 7–30 days. To stop unnecessary TDS in future (e.g. on FD interest when you're below the taxable limit), file Form 121 with the bank — it replaced Forms 15G/15H from 1 April 2026.

Auto-fill your refund return free →

A TDS refund is simply your own money coming back — tax that was deducted before you could claim your deductions and exemptions. It's very common for salaried people, FD holders and freelancers. The process is straightforward once you know it. This guide explains when a TDS refund arises, the exact steps to claim it, how long it takes, and how to avoid having TDS over-deducted in the first place.

1When a TDS refund arises

You're due a refund whenever the TDS deducted exceeds your final tax. The most common situations:

Bank deducts TDS on FD/interest when your total income is below the taxable limit
Your employer's salary TDS turns out higher than your final tax after deductions (80C, 80D, HRA)
TDS on a property sale or professional fees exceeds your actual liability
You forgot to submit investment proofs to your employer, so excess TDS was cut

2How to claim it — step by step

A refund flows from filing your return correctly:

Gather your income details and check the TDS credited in Form 26AS/AIS.
File the correct ITR, reporting all income and claiming all eligible deductions, so your real (lower) tax is computed.
Pre-validate your bank account on the portal and link your PAN to it.
E-verify the return within 30 days — processing starts only after verification.
The department processes it under Section 143(1) and credits the refund to your bank account.

✅ TipMake sure the TDS you claim matches Form 26AS exactly. Claiming TDS that isn't reflected there is the top reason refunds get held up.

3How long it takes and tracking it

Most TDS refunds arrive within 7 to 30 days of e-verification; complex returns can take longer. Track the status on the income-tax portal (Services → Know Your Refund Status) or the NSDL/Protean page. If the refund is delayed beyond the normal period, the department pays you interest at 0.5% per month under Section 244A.

💡 ExampleLakshmi, a homemaker, had ₹25,000 TDS deducted by her bank on FD interest, but her total income was below the taxable limit. She filed an ITR reporting the interest, claimed the TDS from her 26AS, pre-validated her account, and e-verified — and the entire ₹25,000 was refunded within about three weeks.

4Avoiding excess TDS next time

You can prevent the over-deduction so you don't have to wait for a refund:

File Form 121 with your bank if your estimated tax for the year is nil — then no TDS is cut on interest (Form 121 replaced Forms 15G/15H from 1 April 2026)
Give your employer your investment/rent proofs on time so salary TDS is computed correctly
Apply for a lower/nil-deduction certificate (Form 13) for large receipts where TDS would far exceed your liability

Key takeaways

A TDS refund is excess TDS over your actual tax, claimed by filing your ITR.
Report all income, claim deductions, match TDS to Form 26AS, pre-validate your bank, and e-verify.
Most refunds arrive within 7–30 days of e-verification.
Delayed refunds earn 0.5%/month interest under Section 244A.
File Form 121 (which replaced Forms 15G/15H from 1 April 2026) to avoid TDS on interest when your estimated tax for the year is nil, provided your income is below the taxable limit.

Frequently asked questions

Can I get a TDS refund without filing ITR?

Generally no — filing an income-tax return is the mechanism to claim a TDS refund. For future interest income below the limit, file Form 121 with the bank so TDS isn't deducted at all (it replaced Forms 15G/15H from 1 April 2026).

How long does a TDS refund take?

Usually 7–30 days after you e-verify your return, though complex returns take longer. If it's delayed beyond the normal processing period, the department pays interest under Section 244A.

Why hasn't my TDS refund come?

Common reasons: the return isn't e-verified, the bank account isn't pre-validated/PAN-linked, the TDS claimed doesn't match Form 26AS, or it was adjusted against an old demand under Section 245. Check the status and fix the cause on the portal.

What is Form 15G/15H?

They were self-declarations you gave your bank so it would not deduct TDS on interest when your income was below the taxable limit — 15H for senior citizens, 15G for others. Both were replaced by a single Form 121 from 1 April 2026, which works the same way for residents of any age. A 15G or 15H filed before that date stays valid for its own year.