In such a situation, a return is filed for TDS refund. It is necessary to follow the correct documents and procedure to get the source of income refund. Know the information about the documents and procedure required for TDS refund.

What is TDS refund?

When the TDS deducted from the taxpayer’s income is more than the actual income tax liability, then you are eligible for a refund. If your income is below the taxable limit or you have already paid tax, then you can claim the excess TDS deducted as a refund.

Documents Required for TDS Refund

1. PAN card

This is the most important document for TDS refund. You must ensure that your PAN card details are correctly recorded with the employer or deductor (who deducts TDS). If the PAN is not there, then TDS can be deducted at a higher rate of 20%.

2. Form 16/16A

Salaried people require Form 16 to file their tax returns. This form contains the complete details of TDS deducted from the salary. This form has to be submitted on the official website of the Income Tax Department to get the tax refund.

3. Bank account details

Income tax refund is deposited directly into your bank account so you must submit the correct bank account number and IFSC code. Also ensure that your bank account is linked to PAN.

4. TDS Certificate

TDS certificate also contains full details of the tax deducted, including the date of deduction of tax, amount, TAN number of the detector, etc.

5. ITR Form

If you also want to get a tax refund, then for this you have to fill the appropriate ITR form. The form includes all the details of income, deductions and TDS.

6. Other documents

If your income is below the taxable limit, you need to submit Form 15G, 15H for senior citizens so that TDS is not deducted.
Also, proof of investments and deductions like proof of PPF, ELSS or insurance.

Process to get TDS refund

1. First of all you have to file ITR online. For this you can take the help of online platform or any CA.
2. In your income tax return, you need to submit the correct TDS details and other sources of income.
3. You can also file ITR through Form 26AS. It contains a record of your TDS and tax payments.
4. After filing income tax return, if you are entitled to a refund, your claim will be reviewed by the Income Tax Department. After this, the refund is deposited in your bank account within 30 to 45 days.

How to check TDS refund status?

After submitting the income tax return, you can track the refund status online. For this, you have to follow the procedure given below.

1. First of all go to the e-filing website and login.
2. Now you should select the status of refund/demand. In this, you will get to know the real time status.

The post How to Apply for TDS Refund Online – Required Documents first appeared on Rightsofemployees.com.

According to the Income Tax Department, it will now be mandatory for partnership firms and Limited Liability Partnerships (LLPs) to deduct TDS on certain payments to their partners.

this is the new rule

This new rule has been brought under section 94T of the Income Tax Act. Which has become effective from this financial year 2025-26. Know the new rules of TDS in detail –

1. Now the partnership firm will have to deduct TDS on all payments like salary, remuneration, commission, bonus and interest made to the partners. After which it has to be deposited to the government.

2. TDS will be deducted at the rate of 10% on these payments.

3. If the total payment to a partner in a financial year exceeds Rs 20,000, then it will be mandatory to deduct TDS. That is, it is not necessary to deduct TDS on payments less than Rs 20,000.

4. These new rules of TDS will apply to partnership firms and LLPs. Whoever makes any payment to their partners. TDS will be deducted before making the payment and will be deposited with the government. This rule has come into effect from 1 April 2025.

5. TAN is necessary

Partnership firms must have TAN. Firms which do not have TAN will have to apply for it.

This is the aim of the government

The government wants to make tax collection on payments from partnership firms transparent and effective so that cases of tax evasion can be stopped.

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TDS Rules From April 1: Today i.e. from 1st April 2025, the new financial year has started. Many rules have changed at the beginning of the month itself. In this episode, FD investors have got a big relief. In fact, in the budget for the financial year 2025-26, Finance Minister Nirmala Sitharaman had announced that the limit of TDS on interest received on fixed deposits would be increased. The purpose of this change is to relieve small investors and senior citizens from the burden of tax deduction. This change is beneficial for the common people. With the increase in the TDS limit, people will have a little more money in their hands.

The government has increased the limit of TDS on interest income for common citizens from Rs 40,000 to Rs 50,000. For senior citizens, the TDS deduction has been doubled. It was earlier Rs 50,000, which has now become Rs 1 lakh. If your interest income from FD is less than this new limit, then TDS will not be deducted.

What is TDS?

Tax Deducted at Source (TDS) is a tax collection system in which the government deducts tax directly at the source of income. TDS is applicable on many types of income, such as salary, interest on fixed deposits, rent, etc. This tax is deducted as per the prescribed rates.

What is TDS on Fixed Deposit?

TDS on Fixed Deposit is the tax that the bank deducts from the investor’s interest and deposits it with the government. When the interest earned on FD in the bank exceeds a certain limit, then the bank has to deduct TDS. This limit is different for senior citizens and non-senior citizens.

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The post New TDS Rules: New Tax Deducted at Source (TDS) rules to come into effect from April 1, 2025 first appeared on Rightsofemployees.com.

The purpose of these changes is to provide financial relief to taxpayers, investors, senior citizens and commission earners. Let us know what will be the benefit of these changes in different categories.

TDS limit increased for mutual funds and stocks

Due to increased TDS exemption, investors will get more exemption on dividend income and income from mutual funds (MF). In the Union Budget 2025-26, the government has increased the TDS exemption limit (TDS limit increased for mutual funds and stocks) from Rs 5,000 to Rs 10,000 on income from dividends received on shares and mutual fund units from April 1.

TDS limit on dividend income

In the Union Budget presented this year, the TDS limit on dividend income has been changed, this exemption has been increased from Rs 5,000 to Rs 10,000. This means that now investors will be able to save a larger part of their income.

Higher TDS exemption for senior citizens

To provide financial relief to senior citizens, the government has doubled the TDS exemption limit on interest income (Higher TDS exemption for senior citizens). From April 1, 2025, banks will deduct TDS on interest income from fixed deposits (FD) and recurring deposits (RD) only if the total interest income in a financial year exceeds Rs 1 lakh. This means that if the annual interest income of a senior citizen remains within this limit, then no TDS will be deducted.

TDS limit increased for common citizens

For people below 60 years of age, the TDS limit on interest income has been increased from Rs 40,000 to Rs 50,000. This move will be especially beneficial for those who depend on FD interest income. Now, banks will deduct TDS only if the total interest income in a financial year exceeds Rs 50,000.

TDS on lotteries

The government has also increased the TDS limit on income from lottery, crossword puzzles and horse riding. Earlier, TDS was deducted on winning more than Rs 10,000 in a financial year, even if this amount was received in several small amounts. According to the new rules, now TDS will be deducted only when the single transaction is more than Rs 10,000.

For example, currently if a person wins Rs 5,000 three times in a year (total Rs 15,000), then TDS is applicable. After the new rules come into force, as long as the single transaction is less than Rs 10,000, no tax will be deducted.

Relief for insurance agents and brokers

The new rules have given relief to insurance agents and brokers by increasing the limit of TDS for commission. The TDS limit for insurance commission has been increased to Rs 20,000. Earlier this limit was Rs 15,000.

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The post New Rules 2025: There is going to be a big change in the TDS rules from April 1, check Details first appeared on Rightsofemployees.com.

Since the new tax regime has become the default tax regime from FY 2023-24, it has become important for employees to inform their employers about their choice of tax regime.

According to the Central Board of Direct Taxes (CBDT), if an employee fails to inform about his choice, the employer can deduct TDS on salary under section 192 as per the new tax regime rates.

CBDT’s clarification in circular CBDT

in a circular dated April 5 said that if an employee does not inform about his choice of tax regime, the employer shall deduct TDS from the salary as per the rates prescribed for the default regime, i.e. the new tax regime. Could.

The Central Board of Direct Taxes said, “If the information is not given by the employee, it will be deemed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Therefore in such a case the employer shall deduct TDS at the rates provided under sub-section (lA) of section 115BAC on the income under section 192 of the Act.

Information sought from company employees

CBDT has asked employers to seek information from employees about the option of tax regime. If the employee fails to intimate the same, it will be presumed that the employee is in default regime (new tax regime) and TDS under section 192 will be deducted as per the new regime rates.

The CBDT said, “Salaried employees can opt to opt out of the new tax regime every year to avail various deductions available under the old tax regime. The new tax regime is the default tax regime applicable to all individuals. However, under sub-section (6) of section 115BAC of the Act, a person can exercise an option to opt out of this tax regime. A person who does not have income from business or profession can exercise this option every year.

The post CBDT issue Alert! TDS will be deducted more than salary this year, if not accepted by Income Tax Department first appeared on Rightsofemployees.com.