As the income tax return (ITR) filing season for Assessment Year (AY) 2026-27 gets underway, many taxpayers are looking for ways to recover excess tax deducted at source (TDS). In several cases, the amount deducted from salary, bank interest, dividends, or other sources of income may be higher than the actual tax liability. When this happens, taxpayers can claim a refund by filing their income tax return correctly.
The Income Tax Department processes the return and transfers the eligible refund amount directly to the taxpayer's registered bank account. Understanding the refund process can help ensure that you receive your money without unnecessary delays.
A TDS refund arises when the tax already deducted from your income exceeds the total tax payable for the financial year. This situation is common among salaried employees, senior citizens, and individuals earning interest income from fixed deposits or savings instruments.
For example, if your total taxable income falls below the applicable exemption limit but tax has still been deducted, you may be entitled to receive that amount back. Similarly, if the total TDS deposited against your PAN is higher than your final tax calculation, the excess amount can be claimed as a refund through ITR filing.
Once the return is verified and processed, the Income Tax Department credits the refund directly to the bank account linked with your PAN.
Tax Deducted at Source is applicable to several types of income. Some of the most common sources include:
Salary income
Interest earned on fixed deposits
Dividend income
Commission payments
Brokerage earnings
Professional fees
Contract payments
Lottery winnings
Online gaming income
The payer deducts tax before making the payment and deposits it with the government on behalf of the taxpayer. This deducted tax is later adjusted against the individual's total tax liability while filing the return.
One of the most important steps before claiming a refund is reviewing Form 26AS. This tax statement is available on the Income Tax e-filing portal and contains a complete record of taxes linked to your PAN.
Form 26AS includes details such as:
TDS deducted by employers or financial institutions
Advance tax payments
Self-assessment tax payments
Tax collected at source (TCS)
Before submitting your return, ensure that the TDS figures shown in Form 26AS match the details mentioned in your salary slips, bank statements, or other income records. Any discrepancy should be corrected before filing the return to avoid refund delays.
Filing an ITR alone is not enough to receive a refund. Taxpayers must complete the e-verification process after submission. Without verification, the Income Tax Department will not begin processing the return.
E-verification can be completed through several methods, including:
Aadhaar OTP
Net banking
Bank account verification
Demat account verification
Once the return is successfully verified, the department starts processing it. If a refund is due, the amount is transferred electronically to the taxpayer's validated bank account.
Taxpayers can easily monitor the status of their refund through the Income Tax e-filing portal.
Follow these steps:
Log in to the Income Tax e-filing portal.
Click on the e-File section.
Select Income Tax Returns.
Choose View Filed Returns.
Select the relevant assessment year, AY 2026-27.
Click on View Details.
The portal will display the current status of your return and refund. You can see whether the refund has been processed, issued, credited, or held up due to any discrepancy.
Claiming a TDS refund is a straightforward process if taxpayers ensure that their income details, TDS records, and bank information are accurate. Reviewing Form 26AS, filing the correct ITR form, and completing e-verification on time are crucial steps for receiving a refund smoothly. As the AY 2026-27 filing season progresses, taxpayers should carefully check their tax records and submit their returns well before the deadline to avoid last-minute issues.
