Document
Index

Form 26B of The Income-tax Act,1961

By Mohammed S Chokhawala

|

Updated on: May 2nd, 2024

|

3 min read

Form 26B is a tax form used to request a refund of excess Tax Deducted at Source or Tax Collected at Source. If someone discovers that more tax has been withheld than their real tax burden, they must file this form with the Income Tax Department. It provides an organised mechanism for obtaining a refund for the overpayment.

The process includes filling out the form and adding the appropriate papers to support the claim. Once filed, the tax department evaluates the application and processes the refund if it is genuine. Form 26B must be filed online using the TRACES system. It streamlines the refund process for taxpayers.

Key Features of Form 26B

The important elements of Form 26B that you need to understand are:

Purpose

The fundamental purpose of Form 26B is to allow taxpayers to request money back from TDS or TCS that exceeds their actual tax burden. This condition can arise for numerous motives, including inaccurate deductions by employers or depositors and modifications in profits that result in lesser tax liability.

Electronic Filing

Form 26B should be electronically filed using the Income Tax Department's Tax Information Network, mainly the TRACES website. This allows for a more simplified and rapid handling of the refund claim.

Documentation

Form 26B needs to include important facts, including the taxpayer's PAN, the specifics of the tax withheld, and the 12 months for which the refund is requested. Supporting documentation, including the TDS certificates (Form 16/16A), can also be vital to back up the claim.

No Fee

Form 26B is free to file, making it available to all taxpayers seeking a TDS/TCS refund.

Acknowledgement

The TRACES portal presents the taxpayer with an acknowledgement after successful submission. This acknowledgement acts as a submission affirmation and aids in monitoring the application's progress.

Process Time

The Income Tax Department's processing period for a claim might vary. However, if all the information submitted is accurate and complete, refunds are often processed within a few months of filing. 

Rectification and Resubmit

If the original submission contains an issue, taxpayers can correct and resubmit Form 26B. This feature guarantees that minor errors may be fixed without affecting the reimbursement.

Direct Bank Credit

Once finalised, the refund is immediately transferred to the financial institution account related to the taxpayer's PAN. This offers a secure and well-timed transfer of money. 

Who Needs to File Form 26B?

Any person responsible for deducting or collecting tax at source who has deducted or collected more tax than he was supposed to deduct or collect and has deposited it with the government may file Form 26B to claim the refund of the excess tax paid to the government.

Why to File Form 26B?

Here are reasons for filing Form 26B:

Refund for Excess TDS/TCS

The primary motive for filing Form 26B is to seek a refund of excess TDS or TCS deducted. This might happen due to misunderstanding, maths errors, income fluctuations or failure to account for deductions and exemptions.

Correction of Mistakes

To correct inconsistencies in their tax records, taxpayers can file Form 26B. For example, if an employer or bank deducts more tax than is necessary, completing this form might assist in settling the issue.

Financial Planning

Refunding excess TDS/TCS might help with personal financial planning by freeing up monies mistakenly restricted as tax payments. This reimbursement might be applied to investments or other financial obligations.

Legal Compliance

Filing Form 26B helps to assure compliance with tax rules and regulations, reducing legal issues and fines related to TDS/TCS inconsistencies.

Documentation and Recordkeeping

Filing the form offers proof that the taxpayer has taken corrective action to rectify any over-deductions, which will help with future tax audits and verifications. 

How to File Form 26B?

Step 1: Login to the TRACES website using your user ID and password.

Login TRACES

Step 2: Click ‘Statements / Forms’ and select the ‘Request for Refund’ option. 

Refund request

Step 3: Go through the refund request checklist before submitting the request.

Refund checklist

Step 4: Select the section code of the Challan and the reason for raising the request, then click on “Add Challan” to proceed.

Add challan details

Step 5: Enter Challan details and click on ‘View Challan Details’.

Enter challan details for refund request

Step 6: Check Challan consumption details and click on ‘I Agree’ for the declaration.

Check challan consumption

Step 7: Enter Bank Details and click on the ‘Proceed’ option.

Bank details for refund request of excess TDS

Step 8: Verify the authorised person's details and click ‘Proceed’. 

verify the authorized person details

Step 9: On the Confirmation Page, review the details of the challan, deductor, communication address, and bank information. Once verified, proceed by clicking on 'Submit Refund Request.'

Confirmation page for excess refund request

Step 10: Validate the refund request using the registered DSC.

Step 11: After submitting the form successfully, a confirmation message will appear. Click on ‘Preview and print Form 26B Acknowledgement’.

Form 26B acknowledgement

Click here to download the Form 26B pdf.

Can't get yourself started on taxes?
Get a Cleartax expert to handle all your tax filing start-to-finish

Frequently Asked Questions

Can I use Form 26B to report numerous TDS deductions from separate sources?

Yes, Form 26B permits taxpayers to request a reimbursement for excess TDS deducted from numerous sources. You can combine all excess TDS amounts and claim them on Form 26B.

What's the turnaround time for filing Form 26B and receiving the refund?

The processing duration for reimbursements after filing Form 26B varies. Refunds are regularly completed between a few weeks and a few months, relying on elements such as the satisfaction of the statistics supplied and the tax authority's workload.

What do I do if my Form 26B reimbursement claim is denied?

If your Form 26B refund application is denied, carefully consider the rationale offered by the tax authorities. You may need to correct any inaccuracies or submit extra proof to support your claim. If you feel the denial is unwarranted, you can appeal to the relevant tax authorities.

Is there a minimum amount to seek a refund using Form 26B?

There is no minimum amount to receive a refund utilising Form 26B. You can use the form to request a refund for any excess TDS deducted, regardless of the size. 

About the Author

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption