Tax Refunds for Individuals
Updated on: Feb 20th, 2025
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4 min read
If you have earned specific income and TDS has been deducted from it, the government must pay the TDS deducted and file a return. The Return should be uploaded to the TRACES portal. Filing and complying with data procedures is a tedious process. Hence, the income tax portal has provided for uploading the return on its own website.
In this article, let us cover the details regarding the TDS Return filed.
Budget 2025 update
The Union Budget 2025 proposed the rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) to ease compliance challenges for taxpayers especially for middle-income earners. The government has raised the threshold limits across various TDS sections, aiming to simplify the tax process. The proposed changes are as follows
Section
Present
Proposed
193 - Interest on
securities
NIL
10,000
194A - Interest other than
Interest on securities
(i) 50,000/- for senior
citizen;
(ii) 40,000/- in case of
others
when payer is bank,
cooperative society and
post office
(iii) 5,000/- in other
cases
(i) 1,00,000/- for senior
citizen
(ii) 50,000/- in case of
others
when payer is bank, cooperative
society and post
office
(iii) 10,000/- in other cases
194 – Dividend, for an individual shareholder
5,000
10,000
194K - Income in respect of units of a mutual fund
5,000
10,000
194B - Winnings
from lottery, crossword puzzle Etc. &
194BB - Winnings from horse race
Aggregate of amounts
exceeding 10,000/-
during the financial year
10,000/- in respect of a
single transaction
194D - Insurance commission
15,000
20,000
194G - Income by way of
commission, prize etc. on lottery tickets
15,000
20,000
194H - Commission or
brokerage
15,000
20,000
194-I - Rent
2,40,000 (in a financial year)
6,00,000 (in a financial year)
194J - Fee for professional or technical services
30,000
50,000
194LA - Income by way of enhanced compensation
2,50,000
5,00,000
206C(1G) – Remittance under LRS and overseas
tour program package
7,00,000
10,00,000
Note:
- The Tax Collected at Source (TCS) will be removed on remittances made for educational purposes when these remittances are financed through loans from specified financial institutions (Section 80E).
- The Tax Collected at Source (TCS) on the purchase of goods will be removed, effective from April 1, 2025.
- The higher TDS rate will only apply in cases where taxpayers do not provide PAN.
TDS returns summarize the total TDS deducted transactions in the quarter. They are also disclosed in the payee’s Form 26AS. In case of non-furnishing of TDS payment, there will be a hefty penalty.
TDS returns should be filed by
TDS should be deducted from salary income, income received on securities, insurance commission etc.
TDS deducted are different for different types of incomes. TDS rates ranges from 1% to 30% depending on the transactions.
Before you start uploading the return, you must ensure the following.
Here is a step-by-step guide on uploading TDS statements on the income tax website:
Step 1: Go to http://incometaxindiaefiling.gov.in/
Step 2: Log in using your TAN details.
Step 3: Click on ‘e-File’, then ‘Income Tax Forms’ and then ‘File Income Tax Forms’ from the dashboard.
Step 4: Select the form you have to file.
Step 5: Proceed to ‘Upload TDS Form’: Click on the ‘Let’s Get Started’ option.
Step 6: Enter the following details and then click on ‘Proceed to e-Verify’:
Step 7: Validate the return using the OTP sent to the registered mobile number to complete the process.
Following the completion of the process, you will receive a success message. If you haven't already generated your DSC, you can use the Electronic Verification Code to validate the TDS statements (EVC).
TDS returns summarize the total TDS deducted transactions in the quarter. They are also disclosed in the payee’s Form 26AS. In case of non-furnishing of TDS payment, there will be a hefty penalty.